W2 Energy purchases Agri-Green Biodiesel, assumes corporate debt

W2 Energy Inc. has announced the completed purchase of Fernie, British Columbia-based Agri-Green Biodiesel Inc. W2 Energy originally signed a letter of intent to purchase a 60 percent interest in the company in May 2010. However, due to favorable terms in the definitive agreement, W2 Energy has purchased 100 percent of the company in exchange for the assumption of Agri-Green’s corporate debt.

W2 Energy has noted that the purchase includes the biodiesel plant processor. While a representative of W2 Energy could not be reached for further comment on the purchase, information released by the company stated that it intends to immediately ship the plant processor to its 23,000 square-foot factory in Guelph, Ontario. It is expected to be operational within the next 30 days.

“Biodiesel is one of the main renewable fuels used worldwide by commercial and government fuel consumers,” said W2 Energy President and CEO Mike McLaren in a statement. “Because of this, biodiesel production has tripled over the last 12 months." He also stated, "We consider this acquisition of Agri-Green a strategic opportunity for us, because of our ability to produce biodiesel less expensively by using our 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. This gives us a competitive advantage in the production of biodiesel and should add significantly to our bottom line.”

According to W2 Energy’s website, its NT Plasmatron technology is able to convert a variety of feedstocks, including municipal solid waste, animal waste and agricultural waste, into syngas. The MultiFuel Gas-to-Liquid Reactor can take that syngas and convert it into either ultra-low sulfur diesel, a blend of ultra-low sulfur diesel, gasoline and jet fuel, or a blend of butanol, acetone and ethanol.