Able Energy, Inc. (ABLE)

[Golden Cross]

Able Energy Forms Biodiesel Venture
Tuesday August 15, 5:47 pm ET
Able Energy Agrees to Biodiesel Joint Venture With Privately Held Company, Shares Soar


ROCKAWAY, N.J. (AP) -- Able Energy Inc., a retail distributor of home heating oil and diesel fuel, on Tuesday said it has formed a joint venture with a privately held company to produce and distribute biodiesel.
ADVERTISEMENT


Under the deal, Able Energy and partner BioEnergy of America Inc. will each hold a 50 percent stake in USA Biodiesel LLC, the joint venture company. Biodiesel is made from vegetable oils and most often used as a blend with traditional diesel.

The companies plan to produce and distribute biodiesel through plants built at truck stop plazas, home heating depots and other areas where petroleum products are stored. Able Energy will construct and own the plants, using BioEnergy's designs and technologies.

Each plant is expected to produce about 15 million gallons of biodiesel fuel annually.

In a statement, Able Energy Chairman and Chief Executive Gregory D. Frost said the company is "committed to becoming a dominant player in the manufacture and distribution of this important alternative energy product."

Shares of Able Energy rose 53 cents, or 9.3 percent, in aftermarket activity to $6.25 on the INET electronic exchange. The stock lost 4 cents to close earlier at $5.72 on the Nasdaq.