The money will be used to acquire a direct equity interest of 11 per cent in the plant to be run by Amadeus' wholly-subsidiary, Australian Renewable Fuels. According to Amadeus, the likely location for proposed plant would be the southwest town of Bunbury.

The company is also negotiating with other parties for the sale of a further 33% of the project to raise an additional $6 million.

A company spokeswoman said pending final financial arrangements, Amadeus planned to have the plant up and running some time next year.