Israeli biodiesel start-up Galten-Global Alternative Energy will make an IPO

The Israel-based Galten-Global Alternative Energy announced that it will be making an initial public offering (IPO) on the Tel-Aviv Stock Exchange (TASE). The group is currently producing biodiesel in Ghana from the locally-sourced jatropha plant.

The Kadima, Israel-based Galten-Global Alternative Energy announced March 4 that it will be making an initial public offering (IPO) on the Tel-Aviv Stock Exchange (TASE). The group is currently producing biodiesel in Ghana from the locally-sourced jatropha plant. Galten-Global is trying to raise million to bring its operations into full commercial production capacity.

Galten focuses on second-generation biodiesel sourced from jatropha. Last year, it completed a 1,000-plus hectare farm in Ghana for jatropha. The reported production was three times the average of corn or soy-based crops when using a specially-bred jatropha. The company claims to have 200,000 hectares worth of land-leasing contracts in Ghana.

Jatropha is a non-edible plant that grows in marginal land and produces seeds that contain up to 40% oil. The oil can be used to run a standard diesel engine. The plant has been cited by Goldman Sachs as one of the best candidates for future commercial biodiesel production. Several commercial airlines successfully tested fuel mixtures made of jatropha oil combined with existing jet fuels.

Galten was founded in 2006 by chairman and COO Doron Levi and CEO Dr. Shlomi Yunes. The IPO will be handled by the Xpert Financial Group, based on the company’s reported total value of million.

The IPO is not intended to be a standard offer of common stock. The stock will not be immediately tradable on the stock exchange due to the global economic slowdown and to keep the stock par value to fund expansion plans. The IPO is being packaged as a long-term investment, where the public will have the valuable asset on hand. The company will reach full commercial operation in the short term, with an intended capacity of 15 tons of biodiesel production annually to be achieved in two to three years. The stock can be regularly traded in the market once global economic volatility subsides.

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Mike R. Lopez

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Sources:

¹ http://www.globes.co.il
² http://www.galtengroup.com

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