Leviev, Evogene, Ormat in Namibia biodiesel deal

The Israel-based Leviev Group is getting into biodiesel in a new African venture with Israel's Evogene and the Orfuel subsidiary of Reno, Nev.'s Ormat Technologies (NYSE: ORA). The Leviev Group is owned by billionaire diamond dealer Lev Leviev. The group's long list of interests include energy, real estate and construction.

The companies signed an agreement to establish a venture focused on the growth of specialized castor plants for use as a feedstock for biodiesel. The new company will be headquartered in Namibia, and could have operations in other parts of Africa.

Financial terms of the new venture were not disclosed.

"Renewable energy and alternative fuels are fields of high importance to the Leviev Group," said Eli Nefussy, CEO of the Leviev Group in Namibia.

"I am confident that the experience of the Leviev Group in Africa together with the technology and knowledge of Evogene and Orfuel through the utilization of arable lands will result in breakthroughs in these fields."

Evogene will provide the new company with the castor varieties for evaluation, and will use its knowledge and capabilities in plant growth. The Leviev Group will provide access to lands for crop growth in Namibia and logistical infrastructure for the project.

The castor plants will be selected from varieties being developed in a collaboration between Evogene and Orfuel, launched in September 2007.

Under that collaboration, which is backed by the Israel-U.S. Binational Industrial Research and Development Foundation, Evogene and Orfuel are jointly developing non-edible plants, such as castor, for biodiesel commercial production.

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