Pure Biofuels (OTCBB: PBOF) has signed an agreement to acquire 14,000 hectares of land near the city of Pucallpa in central Peru for the cultivation of African Palm to produce palm (15th January). The additional output is set to provide feedstock for its biodiesel production facilities on the coast near Lima. This is in addition to the 60,000 hectares of land in the same region secured by Pure and announced in March 2007.

The new 14,000 hectares will be acquired under a share purchase agreement. The terms of the agreement include the acquisition of 100% of the shares of Inmobiliaria Alpha SAC, a company that owns 15,000 hectares of land and include the transfer back to the seller of 1,000 hectares after the acquisition is completed. Pure expects the acquisition to close by the end of March.

The 14,000 hectares to be acquired by Pure is currently empty and deforested and has already undergone improvements including roads, infrastructure and electricity. Closing of the land acquisition is subject to customary closing conditions.

“This is another important step for our company, and we’re very pleased to be acquiring land that is so well prepared for immediate cultivation,” stated Pure Biofuels’ Founder and CEO, Luis Goyzueta. “The recommendations resulting from our recently completed feasibility studies confirm that African Palm is the lowest cost feedstock source for our production of biodiesel, and we plan to move ahead swiftly with the preparation and planting necessary to see this plantation producing oil as soon as possible. We expect to be ordering seeds and setting up nurseries within the next 90 days and hope to have our first yields within 24-36 months.”

The company previously reported that the African Palm will find a healthy environment in the central Peruvian forests. It is a hearty plant that thrives in the tropical environment. The company’s strategy to self-supply feedstock is a primary differentiator – with many competitors planning to purchase feedstock oil from plantation owners or from the global commodity market.

Pure has plans for an interim supply of the necessary feedstock oils to begin production as soon as the company’s Interpacific Oil expansion and the construction of the company’s primary Callao Port facility are complete. Those facilities’ combined output is more than 62 million gallons of biodiesel per year. The company expects the new 14,000 hectare plantation will provide up to 40% of the necessary feedstock to reach full capacity for those facilities, and the company has additional plans for more land acquisitions to satisfy its remaining – and future growth – needs.