US based Odyssey Oil & Gas, Inc. has acquired ALG Western Oil (Pty) Ltd. a South African based company that has the technology to produce biofuels from algae. The acquisition, completed last month (16th June), is part of the company’s strategy of diversifying into alternate energy resources.

ALG Western Oil has a letter of intent with Xstrata Alloys, a subsidiary of Xstrata Plc, as the preferred developer for the Xstrata Alloys Bio-Fuels Project. The objective of the project is to establish a commercial facility that will utilize the carbon dioxide produced by its smelters to produce biofuels.

"With this acquisition the company has positioned itself at the leading edge of the biofuels industry and is still within the long term strategy of developing and exploiting alternative energy resources," said Arthur Johnson, President.