BLACK HILLS, S.D. --- O2Diesel Corp., which specializes in clean-burning ethanol diesel fuel blends, announced it has entered into a definitive purchase agreement to acquire 80% of ProEco Energy Company Inc., a company developing an ethanol production facility in the Black Hills of South Dakota. The facility's planned capacity is 100 million gallons per year. O2Diesel expects the acquisition to close during the second quarter of 2007. O2 Diesel launched a national campaign last year in Spearfish where the Spearfish Public Schools and Dakota Trailways announced the conversion of all school buses in the district from ordinary diesel fuel to O2Diesel, a cleaner-burning ethanol-diesel fuel blend. The new fleet of vehicles was unveiled at a news conference at West Elementary School in Spearfish, S.D.

Originally posted on Fleet Financials