Galten Biodiesel Ltd. (TASE: GLTN-M) is taking advantage of the world's high oil prices. Six months after it began trading on the TASE, through a reverse merger with the Alumot Sprint stock market shell, the company has signed a letter of intent to agree to its first sell, starting 2014, worth NIS 225 million.
Galten, which grows Jatrophe, a non edible perennial vegetable oil crop for the biodiesel industry, will supply 60,000 tons to Finland's Neste Oil Corporation.
Galten chairman Doron Levy said, "60% of vehicles in Europe are fuelled by diesel and European regulations require 20% of diesel vehicles to be fuelled by biological fuels by 2020. Forecasts see this year's European biodiesel market worth $40 billion. Signing a letter of intent with a giant Finnish company is a substantial stage in Galtan establishing itself as a major supplier of vegetable oil to Europe's biodiesel industry."
The company's share rose 1.1% on the TASE this afternoon, giving Galten a market cap of NIS 60 million.
Published by Globes, Israel business news - www.globes-online.com - on April 30, 2012
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