Galten Biodiesel signs NIS 225m Finnish vegetable oil deal

The company has signed a letter of intent to agree to sell 60,000 tons of Jatrophe to Finland's Neste Oil Corporation starting 2014.

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 - - on April 30, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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