Najafi, Energy Capital Investments to fund Solverdi

Web exclusive posted August 19, 2008 at 1:28 p.m. CST

Najafi Companies LLC, and its portfolio company, Energy Capital Investments LLC, will provide funding to Solverdi LLC, a Phoenix-based company that specializes in producing renewable fuel for the military and large industrial users by retrofitting existing biodiesel plants that currently use transesterification processes to produce biodiesel. In return, the companies will obtain a majority interest in Solverdi.

According to a company news release, Solverdi produces a proprietary renewable fuel that qualifies for use in road and off-road vehicles under the American Society of Testing Materials (ASTM) Section 6751.

Solverdi says its process can convert renewable virgin and waste materials into renewable fuel without the use of chemicals, such as methanol and caustics, which have a negative environmental impact. The unique de-polymerization process provides a clean, low chemical demand biodiesel production processes that is safer for the environment.

"Solverdi is a unique company with a production process and business-plan unlike any other firm in the renewable biodiesel space," said Clifford Svoboda, chief executive officer of Energy Capital Investments.

Dennis Danzik, who is a scientific and technical advisor to Solverdi, said the timing is optimal for making greater strides in the biodiesel market with initiatives the company has in the works. "Solverdi's present and future opportunities in the renewable fuel sector will bring profitability to an industry in need of innovation, as well as proven commercialized engineering applications, and processing technology that substantially lowers cost," he said.

Jerry Pence, a partner at Najafi Companies, said the company has a superb management team, with a solid strategic plan.

"We anticipate that this company will quickly become one of the principal players in the renewable biodiesel business in the United States," Svoboda said.

Najafi Companies is a Phoenix-based private investment firm that makes high selective investments up to $1 billion. The financial details of the agreement were not announced.