Cleantech start-up co Galten in $10 million financing round. The company is working on the production of biodiesel from a plant grown in Ghana.
Merav Ankori 9 Sep 07   19:03

Israeli cleantech start-up Galten, which specializes in the development of biodiesel fuels, will raise $10 million from a group of investors leaded by UK private equity fund Capital Partners. In terms of local cleantech, this is a significant amount and is the first in a series of financing rounds that the company intends to hold. The proceeds will enable Galten, which was founded by entrepreneurs Doron Levi and Shlomi Jonas, to continue cultivating the Jatropha plant for use in the production of bio-diesel. Jatropha is a plant rich in oil that can grow well in marginal soil, thus it can be used to produce large quantities of biodiesel. The plant's unique properties have attracted interest from a number of specialist research companies interested in cultivating it for the production of biodiesel. Galten will carry out its research in Ghana.

Adv. Itay Geffen of law firm Gornitzky & Co, who is an adviser to the company, says that Galten has two key advantages, one of which is the securing of land for the project. "The developers, Levi and Jonas, have already established contacts within Ghana. The regulations for incorporating a company in Ghana are very similar to those here in Israel - it is an orderly country, and the authorities are cooperative. Levi and Jonas have reached a good agreement on the land - it's a modular agreement that allows for payment in installments, so there's no need to put down a large sum to get the land. The arrangement reached is convenient for both sides."

Geffen added that Levi and Jonas have joint R&D agreements with a number of key agronomy research institutions in Europe on Galten's work on the Jatropha plant. "These have cost them a lot of money, and it's worth money," he added.

Published by Globes [online], Israel business news - www.globes.co.il - on September 9, 2007

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