(Press Release) Gerbera Capital led, together with Sun Mountain Capital and Cottonwood Technology Group, the closing of a Series A-‐2 financing round in xF Technologies Inc., a company licensing and commercializing a patented process for producing a novel, low cost oxygenated biofuel additive for gasoline and diesel that reduces engine emissions and extends traditional petrochemical fuel supplies.
Alonso Diaz Etienne, Managing Partner at Gerbera Capital, said, “xF has developed a genuinely innovative solution to many of the problems associated today with petroleum-‐based fuels and ethanol. The unique characteristics of xF’s additive allow for the enhancement of traditional fuels and facilitate the true wide-‐scale adoption of the current generation of biofuels. We believe that Mexico, for reasons including its vast supply of the appropriate feedstock and developed alcohol industry, is strategically positioned to allow this company to the go to the next phase.”
Len Rand, CEO at xF, said, “Our technology will open the door to a promising new stage in the industry, particularly in those countries that have not yet attempted to widely adopt ethanol as a substitute for gasoline. The response from investors continues to be extremely positive for our company and will enable the production of xF to reach commercial volumes shortly. The Mexican connection achieved through Gerbera, not only for funding purposes but also for potential operations and sales has been extremely valuable so far and will continue to be so in the future.” He concluded, “We are very grateful to all our investors and advisors and we look forward to a year of notable advancement in 2014.”
xF Technologies, based in Albuquerque, NM, is licensing and commercializing a proprietary chemical processes to convert carbohydrates or biomass, and alcohol (ethanol or methanol) into a novel, commercially viable fuel additive that provides petroleum fuels with high levels of oxygen. This chemical oxygenate (furoate ester) improves emissions while preserving the fuel economy of the engine and not degrading the spec of the base fuel. xF is a corrosion inhibitor, compatible with existing fuel delivery infrastructure and vehicle engine and drive train configurations, non-‐ toxic, and can be considered a ‘drop in’ fuel that can be blended with existing petroleum-‐based fuels at over 10% in diesel and biodiesel and over 20% in gasoline. The xF Technologies production process is flexible and able to supply each end market from the same production facility using the same carbohydrate or cellulosic feedstock, the same chemical processes, and the same catalysts. Large-‐scale production of xF has projected CapEx and OpEx costs below current petroleum fuel costs and will dramatically increase the worldwide market for ethanol (sourced from traditional or cellulosic materials) and/or methanol (sourced from natural gas or syngas) as transportation fuel components in the fleets of today and tomorrow.
About Gerbera Capital
Gerbera Capital is a Mexico City based Fund and Asset Manager working with talented entrepreneurs and funding innovative companies to support the creation of businesses, jobs and wealth in Mexico and the United States. Gerbera is a member firm of AMEXCAP and LAVCA.