Imperial Petroleum, an energy and minerals company, has acquired Middletown, Indiana-based e-biofuels, a biodiesel producer with a production capacity of 15 million gallons per year.

e-biofuels is now a wholly-owned subsidiary of Imperial. Imperial paid two million shares of its common stock and issued promissory notes in an amount of $3.75m to the owners of e-biofuels. e-biofuels has approximately $15m in debt and payables.

Jeffrey Wilson, president of Imperial, said: “The e-biofuels purchase allows us to expand our biofuels presence from the pilot and laboratory stage into manufacturing.

“In February of this year, President Obama announced directives aimed at increasing America‚Äôs biofuels initiatives and we are very excited to do our part in advancing the biofuels efforts in the US.”

Mr Wilson added: “We expect to proceed quickly now to expand the biodiesel production to 25mmgpy and convert the plant over to our more-efficient process technology and add bio-jet fuel capabilities. 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.”