Transportation & Fuel Source Technology
Nova Energy Launches Biodiesel Fuel Company
Nova Energy Holding, Inc announced the launch of its new biodiesel fuel company, which is headquartered in Houston, Texas. The company's business strategy involves the design, engineering and construction of wholly owned biodiesel refineries in the United States, and the production and marketing of biodiesel fuel and glycerin. The company's common stock trades under the symbol NVAO on the over-the-counter electronic bulletin board.
Nova Energy currently has two full-scale production facilities under construction, with a combined production capacity of more than 30 million gallons per year. Nova has $20 million under contract for the build out of these two facilities.
"The propriety, patented processing technology Nova will employ to produce biodiesel gives the company a significant competitive advantage compared to biodiesel industry standards. We can produce a cleaner, higher-quality fuel at a lower cost, from a broader variety of commonly available feedstocks," said Ken Hern, Chairman and Chief Executive Officer for Nova. "Our team includes former presidents and CEOs from the world's biggest oil companies. More importantly, we have the strongest technical staff in the industry. This high quality group of engineers is led by Dick Talley, a recognized expert in biodiesel. It's a team of partners, not employees."
In addition, the company has entered into agreements with several large food processing companies with commitments for the supply of large volumes of low-cost feedstock sources. Nova Energy intends to produce biodiesel fuel by using its proprietary, patented process technology to produce high quality biodiesel from animal fats as well as vegetable plant oils. Uniquely, Nova can utilize multiple, low-cost feedstocks in any combination to produce high quality biodiesel. Biodiesel can be used on a 100 percent basis, or can be blended with between 2 and 20 percent petroleum diesel.
Biodiesel is currently the fastest growing alternative fuel market in the world. Current biodiesel production is approximately 75 million gallons per year in the U.S. As noted above, Nova's first two production facilities are expected to produce approximately 30 million gallons per year, a production capacity equal to 40 percent of the entire production capacity in the U.S. today. U.S. Department of Agriculture studies project that demand for biodiesel fuel in the U.S. will reach 800 million gallons by 2010, accounting for approximately 2 percent of the 60 billion gallon per year total fuel market.
In the interest of environmental protection, new government regulations and legislation regarding permissible emissions in the U.S. have created an opportunity for the biodiesel industry. The new legislation has mandated lower sulfur content in diesel fuel by 2006. While low-sulfur diesel can have negative effects on engine operation, a blend of 20 percent biodiesel and 80 percent petroleum diesel provides better lubricity and lower toxic emissions for diesel fueled vehicles, while enabling diesel engines to operate safely and efficiently. Biodiesel can be used in any diesel fuel vehicle without modification. The trucking industry and other fleet vehicle users are envisioned as the primary markets for use of biodiesel fuel.
"We are pleased to launch Nova Energy as it addresses three important needs in the U.S. -- reducing environmental pollutants, reducing the nation's dependency on imported crude oil, and meeting the fast-growing demand for biodiesel fuel to power the nation's trucking, rail and marine fleets," Hern said. "Biodiesel can reduce emissions without compromising diesel engine performance, expand the nation's fuel reserves and enable the company to fulfill its commitment to reduce U.S. energy dependency on outside sources. Nova's unique and proprietary system gives us a decided cost advantage over our competitors and we will use this advantage to significantly grow our business in the future."
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