Diverse energy firm US Energy Initiatives (USEI) has signed a joint venture agreement with Methes Energies Canada for the construction of several small scale biodiesel plants in California.

USEI will employ its tools, experience and support for the development of the plants while Methes will provide its proprietary Denami 600 technology.

The said technology allows quick installation and can generate 1.3 million gallons of biodiesel per annum, and can be increase incrementally going forward.

Commenting on the company’s future plans USEI CEO Anthony Miller remarked that they will focus on biodiesel in 2013 and later its oil and gas technologies.

"We have decided to take this green alternative path first, because it provides us with the most successful path possible.

"Methes will be involved in all aspects of this venture and we will delineate greater information about this plan incoming weeks which will include our financing plan," added Miller.

Methes Energies Canada is a subsidiary of biodiesel producer and biodiesel equipment provider Methes Energies International.

USEI is also in the works to finalize a second joint venture in California with a yet unnamed biodiesel producer.