Neutral Fuels first to use crowd funding for biofuels production
Dubai based Neutral Fuels is set to use crowd funding platform Eureeca to expand production and meet the ever growing demand for clean, green biofuels. It is believed to be the first time a biofuels company has raised capital in this way.
The company, the first and one of the largest in the region, is looking to build on six years of profitable growth. Neutral Fuels co-founder and CEO Karl W. Feilder told Biofuels International: “We recently succeeded in commercialising the production of biodiesel using an enzyme catalyst . We are now raising funding to establish the third production line in our factory, which will be flexible and able to run the enzyme based biodiesel production or traditional production.”
He went on to say that Neutral Fuels expects to double its sales revenue in 2017 compared with 2016, and see a continued increase in demand from its local market.
“We are very lucky, in that we sell every drop of fuel we can produce and we have a good supply of raw materials, so the precise dimensions of the new scalable production line will depend on the level of interest we receive in our crowd funding round.” Feilder added.
The company sees a range of benefits to using the crowd funding route: “There are a number of great advantages to crowd funding - especially in the Eureeca model - as it allows a larger number of small and medium sized investors to acquire an actual shareholding in our company. This will expand our shareholder base internationally, and hopefully open the way to future opportunities beyond our Dubai home.”
Founded in 2013, Eureeca is a multi-regulated platform which has received licensing from the UK Financial Conduct Authority and the Securities Commission Malaysia in 2015, and recently the Netherlands Authority for the Financial Markets and Dubai Financial Services Authority (DFSA).
“We chose Eureeca as they are a regulated entity, and have the most experience in making sure that our new shareholders will be well looked after,” Feilder explained. “Eureeca is the first global equity crowdfunding platform. It enables members of its investor network, who range from casual and angel investors to institutional firms, to buy shares in growth businesses.”
More information about Neutral Fuels’ crowd funding initiative is available here: http://info.eureeca.com/neutralfuels
This article was written by Daryl Worthington, assistant editor at Biofuels International