Bob Cameron, along with Andrew White and Indigo Mayor Peter Graham, inspecting the construction of the Barnawartha biodiesel plant. Picture: SIMON GROVES
BARNAWARTHA biodiesel plant is leading the way for alternative fuel production in Victoria, Bob Cameron said.
The Victorian Agriculture Minister said that while still close to 12 months from selling any fuel, it was the most advanced of three plants planned for the state.
Construction is expected to be completed in February next year with the first of an annual 60 million litres of fuel sold in May.
The construction site was part of the minister’s whistle-stop tour of the North East yesterday.
Mr Cameron said the industry, in time, could also provide an alternative market to canola growers.
“Biodiesel and the agriculture interface is something that is going to develop over the years,” he said.
“Here we see tallow and cooking oil as the raw material but you will also see canola oil used as well.
“So there is a fair interest from the grain industry in what happens with biodiesel.
“It could provide an alternative market for canola.
“At the moment tallow is a better business proposition but a plant planned for Swan Hill is expected to be based solely on canola oil.”
Mr Cameron said he was very keen to look at the plant.
“This development positions the North East as a place of great innovation,” he said.
“There is big interest in biodiesel and when you look at the cost of petrol the interest in alternative fuels is all the greater.”
Mr Cameron said government and industry were looking closely at alternative fuels.
“There is a lot of interest in alternative fuels from the state and federal governments given the problems we face with world oil prices,” he said.
“But there is also enormous interest in industry with the potential for much cheaper fuel.”
Biodiesel Producers managing director Andrew White said the target date for the end of construction was February with production to start in May.
“We always thought it was a 12-month construction,” Mr White said.
“The tank farm concreting is completed and concrete work on the process tower will be completed in the next week or so.
“You will start to see tanks come out of the ground in the next month or so.”