Energiepark Suptitz inks rapeseed supply deals in Eastern Europe

Oct 29, 2012 - German alternative energy feedstock producer Energiepark Suptitz (EPS) has awarded supply deals for over 100,000 tonnes of rapeseed per year with farmers in Eastern Europe, its parent US Eco Ventures Group Inc (OTCBB:EVGI) said today.

The supply contracts, new or expanded, will generate some USD 70 million (EUR 54.2m) in 12-month incremental revenue with a gross margin of some 15% when converted to rapeseed oil and sold, Eco Ventures Group estimates. EPS converts the rapeseed into oil in mills and sells it as biofuel feedstock, sending the rapeseed cake back to farmers as nutritious feed for livestock.

Delivery of the first 10,000 tonnes to EPS under the contracts is in progress.

Eco Ventures Group's CEO Randall Lanham said the company was in talks for future offtake agreements for when it completes the EPS biodiesel production facility in Suptitz in the first quarter of 2012.

Eco Ventures announced in August a definitive deal to acquire 75% in EPS. In October, it said it would raise its stake in EPS to 100%.

(USD 1 = EUR 0.775)

Choose your newsletter by Renewables Now. Join for free!