BlueDiesel Opens WA Biodiesel Pilot Plant!

Perth Now, 29 June 2006

Biodiesel firm, BlueDiesel, opened a Perth pilot plant today. The company makes a small, portable biodiesel plant for use in remote communities.

Agriculture and Food Minister Kim Chance today officially opened WA's latest biodiesel pilot plant, heralding a new chapter in the State's moves toward cleaner fuels.

The BlueDiesel pilot plant in Welshpool uses a locally developed process which will extract biodiesel from canola oil at a scale suitable for use in regional and remote communities.

"BlueDiesel's research efforts and persistence has resulted in a process that has faster reaction and separation than alternative systems," Mr Chance said.

A feature of the BlueDiesel process is its ability to produce large volumes of pure diesel using portable equipment.

A unit the size of a 7m shipping container can produce more than a million litres of biodiesel a year.

The BlueDiesel process generates 2.2 litres of pure biodiesel in the time taken to produce one litre using conventional processes.

"It is an exciting time for alternative fuel production in WA," the Minister said.

"This pilot shows innovative technologies are emerging that provide practical ways of obtaining dramatically cleaner fuels at a viable cost."


To date, there has been no large-scale biofuel production in WA, although there are several biodiesel and ethanol projects at various stages of development.

Mr Chance warned that new biofuels technologies had been placed at risk due to the Federal Government's recent amendments to the Fuel Tax Bill.

Under the new Fuel Tax Bill, assistance available under the Cleaner Fuels Grant Scheme (CFGS) will fall between 2011 and 2015.

The grant will decrease from 38.1 cents per litre to 19.1 cents per litre for biodiesel and 12.5 cents per litre for ethanol by 2015.

BlueDiesel founder and chairman Mr Andrew Warton said the Federal Government's Fuel Tax Bill was a major blow to the positive investment environment for cleaner fuels in WA.

"A robust biodiesel industry will contribute to enhanced security of energy supply and positive economic, health, environmental and regional development outcomes in this State," Mr Warton said.

"However, we need a tax regime that will support the development of these technologies - not reward the continued use of non-renewable fuel sources."

Mr Chance urged the Federal Government to take time to look at the exciting work being done by BlueDiesel.

"This really is an exciting project with the potential to deliver significant environmental benefits to the entire community - and enhance the economic prospects of regional and remote communities," the Minister said.