Update: Innovation CEO John Fox says the credit line figure reported by VentureWire was incorrect and smaller than $130 million, although he would not disclose the exact amount.

Relatively small right now, Albany, NY-based Innovation Fuels has plans to move into a bigger league soon, with forecasted production of 300 million gallons per year by next year.

Like larger competitor Renewable Energy Group, which called off an IPO this year due to market conditions, Innovation plans to help consolidate the biodiesel industry by buying up weaker companies and outdated production facilities.

About a week ago, Innovation announced that it had secured a $160 million credit line from Citizen’s Bank, in part for expansion at home, but also for a planned move into the European market.

Aside from standard operations, Innovation also says on its website that it’s considering cultivation of algae and jatropha, a hardy South American bush, to help diversify away from food sources for its feedstocks.

The $15.5 million venture investment, reported by VentureWire, included $5 million of debt. The investors in the round were Credit Suisse Customized Fund Investment Group, RNK Capital and Lyrical Partners.