Under the terms of the contract, Buffalo Biodiesel becomes a wholly owned subsidiary of HydroGenetics, said the company.

Mr Sumit Majumdar, president of Buffalo Biodiesel, said: HydroGenetics is the parent for us. Solid management, diverse technologies with upside, and the relationships with core competencies will help us grow over the next few years.

Marc Walther, CEO of HydroGenetics, said: This acquisition as we move toward becoming fully reporting should send the message to the investment community that we are moving in the right direction and that we should be on every investors watch list as a company on the move.

Buffalo Biodiesel is a biodiesel manufacturer. The company collects, renders and processes biodiesel itself, creating a profitable and alternative energy business and a customer base .