Innovation Fuels ships biodiesel to the Netherlands

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Web exclusive posted August 12, 2008 at 11:52 a.m. CST

Innovation Fuels Inc., a New York-based renewable fuel company that manufactures, markets and distributes biodiesel globally, recently shipped more than 15,000 barrels of biodiesel from New York Harbor to Rotterdam, Netherlands. It's the first shipment of Innovation Fuels Europe, a joint agreement between the company and Arpadis Group.

"I think what's also unique about it is that it's a shipment from a producer, direct to an end customer," said John Fox, Innovation Fuels chief executive officer.

"We are looking forward to receiving the first shipment of biodiesel through our Innovation Fuels Europe joint venture," said Laurent Abergel, managing director and chairman of the board for Arpadis Group. "This is a wonderful next step to serve Europe, the largest market for biodiesel in the world."

The company recently closed on $15.5 million in financing led by Credit Suisse Customized Fund Investment Group on behalf of New York Common Retirement Fund, RNK Capital and Lyrical Partners.

Fox said the company has its own distribution channel which enables it to sell its B99 biodiesel directly to the distributors in Europe. "It cuts out the middle-man," he said. "We have distribution channel which is a European-based entity for people who live and work in Belgium and other areas of Europe, and speak the common language. It makes for a much better relationship and a fluid operation. We are also employing people in Europe � so we're making an investment in the country as well."

One of the company's operating goals has been to focus on using lower-cost and non-food based oils in production. "As a result, we are able to provide domestic pricing, as well as international prices that can compete against heating oil. In fact, we have several domestic sales that are meaningful to our local economies."

Innovation Fuels uses a variety of feedstocks, mainly animal fats and used vegetable oils. "It enables us to keep costs down for the end customer," Fox said. He is optimistic about extending the company's already present global reach. "This shows our ability to reach customers internationally, not just domestically, and is done so with positive margins," he said.
Innovation Fuels, which has a verified 950,000 barrel per year refinery located in New York Harbor, recently acquired North American Biodiesel, a company that was founded two years ago for the purpose of developing a biodiesel production facility in Milwaukee, Wis. It provides Innovation Fuels with direct, deep-water international access via leasehold at the Port of Milwaukee on the western shore of Lake Michigan.