Nano Labs enters JV with DerTek for US biofuels production

Nano Labs has entered into a joint venture agreement with DerTek to launch a research and development, marketing, and manufacturing programme to produce biofuels in North America. The JV will initially begin in Mexico.

DerTek is a technology-based company presently located in Mexico that has developed a novel technology highly effective as a catalyser to produce biofuels from organic oils using raw materials that do not compete with the food sector. DerTek biofuels are made using oils coming from different crops like the castor oil plant (Ricinus Communis). These oils offer a substitute for diesel fuel with a lower price and with additional benefits such as providing a remarkable reduction of polluting emission and reduction of maintenance costs of engines.

With a current capacity to produce more than 25 million litres of biofuel per year, the company is facing a rapid growth phase. This is due to the recently opened market resulting from the approval of the energetic reform undertaken by the present Government of Mexico.

The JV agreement outlines the establishment of a new corporate entity in the USA territory for the operational and funding requirements of DerTek. The new company will be responsible for developing, manufacturing and commercialising biofuels. In accordance with the terms and provisions of the JV, DerTek will be 50% equity owner and Nano Labs will be 50% equity owner of this new corporate entity.

'With this joint venture, our goal is to bring value and new opportunities in the energy sector by developing and manufacturing better fuels at a lower cost and at an eco-friendly way at the same time reducing carbon emissions,' says Bernardo Chavarria, president of Nano Labs.