Dubai-based venture capital fund Alf Yad has announced that it is picking up a majority interest in Emirates Biodiesel, through its umbrella firm Damam Investments, according to Emirates Business.

Emirates Biodiesel (EmBio) is seeking to produce around three million gallons of biodiesel per year, with production expected to be ramped up with growing demand. The biodiesel facility is being built at the Al Ain industrial area and is expected to enter commercial production in the first half of 2009.

Shehab Gargash, CEO of Daman Investments, told Emirates Business that EmBio is the second and the most ambitious investment in Alf Yad’s portfolio, which is reported to have 10 venture capital funds.