An industrial area north of Brisbane has become Queensland's focal point for production of the clean-burning alternative fuel biodiesel.
A privately owned consortium, Eco Tech Bio Diesel, started production at Narangba in February and next month a larger, $9 million facility will be opened just down the road by listed firm Australian Biodiesel Group.
Eco Tech – a joint venture of Western Australia's Gull Petroleum, an independent New Zealand oil company and three entrepreneurs – has already sold the first year's production of 30 million litres. Plans are now advanced for a second facility which would boost annual production to 75 million litres.
At yesterday's official opening, chairman Neil Rae described the complex as "a real outcome" which showcased the industry's viability.
ABG expects to generate 160 megalitres annually from its Narangba plant.
The company, which went public in December, reported a $680,000 loss last year but has forecast an $8.17 million net profit this year.
Environmental concerns and high oil prices have stoked interest in biodiesel, which is made from renewable sources such as vegetable oils or animal fats mixed with alcohol.
The fuel, which can be used in diesel engines with little or no modification, emits 92 per cent less greenhouse gas and is biodegradable, non toxic and sulphur free.
The Australian Government has set a target of using 350 megalitres annually by 2010. Current production capacity is about 100 megalitres.