Nova Energy Holding, Inc. (NVAO.OB) has launched a biodiesel company, 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. 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 addition, Nova Energy announced that its board of directors has declared a three-for-two stock split, which will be payable on April 24, 2006 to holders of record of the company’s common stock as of the close of business on April 10, 2006. Fractional shares will be rounded upward to the nearest whole share.
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