Web exclusive posted April 30, 2008 at 3:00 p.m. CST

Innovation Fuels and Arpadis Group SA have formed Innovation Fuels Europe, a joint venture company based in Antwerp, Belgium, that will market and distribute biodiesel throughout Europe.

U.S.-based Innovation Fuels manufactures, markets, and distributes biodiesel fuel to customers around the world; Arpadis Group, a Belgium-based holding company that focuses on chemical distribution and custom processing, is a major European distributor of biodiesel and glycerin.

Innovation Fuels recently secured $15.5 million in a financing round from Credit Suisse Customized Fund Investment Group, RNK Capital, and Lyrical Partners.

"This is a huge step forward for both our companies and will serve as the basis for all of our marketing and sales efforts across Europe," said Innovation Fuels CEO John Fox. "We have already received positive reviews of the quality of our biodiesel and glycerin from European customers, and we look forward to building long-term relationships with end customers in Europe."

Laurent Abergel, managing director and chairman of Arpadis Group's board, said the company believes the quality of biodiesel and glycerin offered by Innovation Fuels will be the cornerstone to a successful partnership.

Europe has emerged as a strong market for U.S. biodiesel producers for a number of reasons – European Union usage mandates outstripping E.U. production capacity, and the relative weakness of the dollar against the Euro, have spurred imports of high-quality biodiesel made from vegetable oil.