Nova finished an exclusive placement in July for around $18 million. These resources will soon be used to construct and perform two to four Biofuel Consultantsrefineries with a production capacity of between 120 to 240 million gallons of biodiesel gasoline per year. This news is quite good because it shows institutions and big investors believe the organization to become a strong investment.
But the big information propelling Nova's stock cost is really a recently-inked deal with ConAgra. ConAgra is certainly one of North America's biggest manufactured ingredients companies. In September, Nova signed a feedstock source and biodiesel sales agreements with ConAgra Industry Group.
The agreements give that ConAgra Trade Party will procure the plant gas and animal- centered feedstock needs for the Nova-owned biodiesel refinery, along with promote the biodiesel gas and handle the logistics for the facility. Building on the connection with ConAgra,
Nova lately signed a biodiesel income agreement for Nova's 60 million quart each year biodiesel center to be located in Seneca, Illinois. ConAgra Deal Party will give you selling and outbound logistics solutions for the facility as part of the agreement. Nova needs the Seneca refinery to be open in summer time of 2007.
Detailed Features include the first 10 million gallon annually biodiesel refinery being integrated Clinton Region, Iowa approaching completion. That facility is targeted for completion in the coming weeks.
The second refinery is being created near DeForest, Wisconsin, and the center will be wholly held by Anamax Energy Services. Nova's agreement with Anamax offers the design and construction of a 20 million quart annually biodiesel facility on the premises of an Anamax-owned portrayal plant. The targeted completion date of this ability is January 2007.
The next refinery is being developed for Scott Petroleum Corp. and the agreement provides for the design and structure of a 20 million gallon annually biodiesel refinery positioned in Greenville, Mississippi.
Nova currently posseses an contract with Scott Petroleum to get 50 percent with this facility's creation for ten years at around the creation cost as a swap for original and deferred payments meant to reimburse
Scott Petroleum for the step-by-step structure expenses related to increasing the capability from 10 to 20 million gallons per year. The targeted completion time because of this service is expected to stay early 2007.
Nova has a private, patented biodiesel creation technology, developed by Nova Biosource Fules, which is wholly-owned by Nova Energy Holding. This technology allows Nova to reduce handling fees by as much as 35% and over all gasoline production charges by around 20% from typical market practices. This competitive gain results in decrease manufacturing prices, quicker ability letting, and little environmental impact as a result of lack of air and water waste streams.
Nova features experienced administration, including CEO Kenneth Bern who offered as Leader of Texaco Saudi, Inc., between 1981-1984, as Vice Chairman and Controlling Manager of Texaco Nigeria Confined from 1984 through 1989, and as President of Texaco Brazil from 1989 through 1994. COO Jody Powers was the former president of Halliburton Energy Companies,
where he labored for 35 years. Nova has also stacked their table with market authorities and skilled veterans in the energy field. Their guidance and their associates must let Nova to make the most of options going forward.
Softer gas prices reduce interest in option sourced elements of power -- and their stocks. Nova's stock price suffered combined with the recent decrease in primitive oil rates, but has because been rebounded strongly. After fishing under $3.00, Nova's inventory has easily opportunity as much as $4.00, largely on information of the ConAgra deal.
Nova closed nowadays up 11% on level of nearly multiple the average. We see Nova breaking their all-time high of $4.40 in the coming months, providing the possibility of an instant 10% profit. Nevertheless, Nova should be considered as a long-term perform, as new refinery structure and table sessions has demonstrated commitment to becoming a high biodiesel producer.
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