Clean energy company, W2 Energy, has completed the acquisition of Canada-based Agri-Green Biodiesel.
Under the terms of the agreement, W2 Energy purchased 100% of the company in exchange for the assumption of Agri-Green's corporate debt and the company's biodiesel plant processor.
W2 Energy president and CEO, Mike McLaren, said the acquisition of Agri-Green is a strategic opportunity for the company, because of W2's ability to produce biodiesel at a lower cost by using low-temperature plasma technology.
"We can use W2 Energy's NT Plasmatron and MultiFuel gas-to-liquid reactor to make its own methanol, electricity and heat from waste sources, thereby reducing the costs of the methanol used in the biodiesel process," said McLaren.
"This gives us a competitive advantage in the production of biodiesel and should add significantly to our bottom line."
W2 Energy's new biodiesel plant processor is capable of consistently producing 657,894gal of biodiesel per year.
The company estimates an approximate revenue base of $2.9m from the production and sales of biodiesel.
W2 Energy plans to retrofit the processing plant in order to increase production to 1.2m gal by 2013 and ship the biodiesel plant processor to its 23,000ft² factory in Guelph, Ontario within the next 30 days.