Key Components
Nova Biosource Fuels, Inc. (Nova) is an energy company that synthesizes and distributes renewable fuel products. Nova is currently constructing 4 biodiesel refineries with a combined capacity of over 110 million gallons. Within three years Nova intends to expand operations to build and operate seven biodiesel refineries ranging from 20 to 60 million gallons per year (MGY) in production capacity.
Global commodity prices dictate the direction of most energy companies. Given this fact, Nova has identified three critical factors that must be leveraged in order to maintain profitable biodiesel facilities and maintain a competitive advantage in the market:
(1) Procure low cost feedstock
(2) Utilize a process technology that ensures high product quality, low production costs, and can process a multitude of oil and fat feedstocks
(3) Distribute products to established networks of end-users while providing exceptional fuel quality. These three components are the foundation of Nova’s business strategy.
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Feedstock:
Because feedstock represents 65-80% of biodiesel production costs; it is imperative that Nova be able to acquire our fuel’s raw materials at a reasonable cost in order to be competitive in the marketplace. Nova’s proprietary process technology has the capability of using over 25 different feedstocks that include vegetable oils, animal fats, and reclaimed greases.
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Process:
Nova’s proprietary biodiesel production technology produces fuel that exceeds current ASTM 6751 specifications for biodiesel fuel blendstock (B100) for distillate fuels, which makes the biodiesel a superior choice to the petroleum based counterparts. Nova’s facilities are able to process multiple low cost feedstock from both animal and oil seed sources. In addition, the Nova process does not generate toxic or hazardous byproducts. When combining these factors Nova is able to reduce fuel production costs by as much as 20% from standard industry practices. This competitive advantage results in lower manufacturing costs, faster facility permitting, and minimal environmental impact due to the absence of air and water waste streams.
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Distribution:
Domestic biodiesel sales have increased over 100% each year since 1999, and biodiesel is now the fastest growing alternative fuel market in the world. Currently, the largest market for biodiesel is vehicle fleets of federal, state, and local government agencies, as well as fleets operating in urban or environmentally sensitive areas that are regulated by the Energy Policy Act (1992). Nova has positioned itself to take advantage of the rapidly growing market by forming strategic relationships and pursuing long-term fuel contracts with large public and private companies that are able to consume bulk shipments of our fuel, both in neat and blended form.
Click on the Link below - Nova and its subsidiary Biosource America are raising the standards for biodiesel fuel quality. |