Imperial buys Indiana biodiesel plant to convert to slow pyrolysis

May 25, 2010

Oil exploration and development company Imperial Petroleum, Inc., has acquired an Indiana biodiesel company with a production capacity of 15 million gallons a year.

The firm traded two million shares of its common stock plus $3.75 million in Promissory Notes for 100% of the stock of e-biofuels, a firm based in Middletown, Indiana.

Imperial, which has its registered offices in Evansville, Indiana, said its new acquisition has around $15 million in debt and payables, with 2009 revenues of about $20 million and a net loss of about $1.96 million.

Last year’s figures were based on production of 7 million gallons of biodiesel.

Jeffrey T. Wilson, President of Imperial, said the acquisition allowed his company to expand its presence in the biofuels market from the pilot and laboratory stage into manufacturing.

Mr Wilson said: “We’re pleased to add the management of e-biofuels to our Company and the production expertise that they bring with them as we now accelerate our presence in this industry. ”

Imperial said it now intended to expand its biodiesel production to 25 million gallons a year, and convert the Middletown plant over to a “more efficient process technology”.

The firm also intends to add capabilities to produce bio-jet fuel.

Hoosier

After its acquisition, e-biofuels becomes a wholly owned subsidiary of Imperial Petroleum. It joins Imperial’s biofuels research and development subsidiary Hoosier Biodiesel Company.

Hoosier has been developing technology to turn waste fats into biodiesel fuel for boilers and for home heating systems.

Buying an existing biofuel production plant for up to $12.3 million was the company’s stated next step for Hoosier’s “slow pyrolysis” process.

Mr Wilson said: “Our goal is to add slow pyrolysis equipment into the facility over the next year to produce both electricity for re-sale to the power grid and bio-oil for inclusion in our renewable boiler fuel and renewable heating oil products.”