A Dubai based venture capital fund, Alf Yad Limited LLC, has unveiled a venture capital investment in a company, EmBio, which, it says, is positioned to become producer of the first constant supply of high grade biodiesel in the United Arab Emirates and the Gulf Cooperation Council. EmBio was set-up by the founders of UAE-based Ecobility Energy Solutions (Ecobility). Daman Investments is manager of the fund.

The EmBio facility is due to be fully commissioned in the first half of 2009. It will use inedible oils as feedstock in the production of commercial grade biodiesel primarily targeted to the construction, shipping, and transportation logistics sectors.

Commenting on the project, CEO of Daman Investments, Shehab Gargash said: "Alf Yad sees tremendous potential in the renewable energy sector and EmBio is a partner that we are sure will successfully deliver the first of its kind production facility in the GCC. In addition to commercial considerations, EmBio represents the best and highest purpose for which Alf Yad was formed – to assist the development of serious, commercial ventures based here in the region – ventures that will be capable of competing on a global scale. Founded by two young Arab entrepreneurs who left their highly successful and well established professional careers to develop proprietary sustainability projects in the region, we believe EmBio represents a real achievement in local sustainable development."

Ecobility founders Karim Aly and Wadah Abusin were present at the press conference and when queried about the reasons behind developing such a unique venture, Mr. Aly said: "We are confident in both the nature and timing of EmBio - the need for a functional non-fossil fuel alternative has now become more evident than ever. Generally speaking, biodiesel is highly complimentary to a holistic sustainable energy strategy as it concentrates on displacing liquid petroleum fuels while other renewable energy sources such as solar and wind focus predominantly on power generation."

Mr. Abusin added: "Here in the GCC, as in the rest of the world, we are faced with surging energy demand and growing pressure on the environment. It was clear that the need for sustainable development is critical to a prosperous future for the UAE and the region. The majority of the infrastructure underlying the region’s economic growth is Diesel-powered. Given the difficulty of making immediate major cuts to fuel subsidies, the GCC states are rapidly exploring ways to make greater use of alternative energy to meet the growing domestic demand - EmBio therefore, presents a truly viable solution."

Commenting on the choice of EmBio as a venture capital initiative for Alf Yad, Chief Operating Officer Mrs. Nadimeh Mehra said: "We are very proud to partner with EmBio in this exceptional venture. This is clearly one of the fastest growing alternative energy sectors and The United Arab Emirates is very well-positioned to take advantage of this trend due to a number of local factors including strong economic growth, large carbon footprint per capita, increasing federal support and the recent introduction of several ambitious sustainability plans. Apart from its obvious potential as a high return investment – we are convinced that this project has the added benefit of enormous social value for every citizen in the GCC which cannot be purely quantified in economic terms."