DALLAS -- Earth Biofuels Inc. has acquired a 51 percent interest in Vertex Processing LP from Vertex Energy LP.

Vertex Processing owns a facility strategically located near the Houston Ship Channel which was previously utilized for chemical processing and has since been converted for production of biodiesel fuel. The fuel produced by this facility will be sold under Earth Biofuels' Willie Nelson brand name, BioWillie, to local markets and other areas.

"Vertex Energy will be an excellent partner as we bring the BioWillie brand to Houston and the surrounding areas," said Dennis McLaughlin, chairman and CEO of Earth Biofuels, Inc. "This city is known for being a leader in providing energy solutions; therefore, we feel that this is the ideal location for one of our major biodiesel production facilities as we strive to help reduce our nation's dependence on foreign oil through the production and distribution of biofuels."

The Houston facility represents Earth Biofuels' first joint-venture biodiesel producing plant, which has a current capacity of 10 million gallons per year (MMgy). Under the direction of Miguel Dabdoub, the joint venture expects to expand the facility to 20 MMgy over the next several months. An expert in biodiesel process technologies in Brazil, Dabdoub has been instrumental in that nation's near independence from foreign oil and owns proprietary technologies related to the production and use of biodiesel fuel. Earth Biofuels owns the exclusive rights to use these technologies in North America.

Earth Biofuels produces and distributes biodiesel fuel through the company's network of wholesale and retail outlets. The fuel is sold under Willie Nelson's brand name, "BioWillie." The Company is focused on capitalizing on the growing demand for alternative and renewable fuels in the domestic market.

SOURCE: Earth Biofuels via Business Wire.