"Biodiesel is one of the biofuels with the best commercial prospects in Australia and the Government offers a number of avenues of support for the development of this sensible, yet exciting, fuel alternative," said Macfarlane.

Australian Biodiesel Consultancy received a grant of $52,000 through the Commercialising Emerging Technologies (COMET) program. This was to help with a business plan for the new industry and a strategy to protect the intellectual property behind the process.

The company has also benefited through investments of about $200,000 from CVC REEF, a renewable energy venture capital fund, licensed under the Australian Government's Renewable Energy Equity Funds Program.

"This sort of research, to find viable and environmentally friendly alternatives to the world's dwindling fossil fuel resources, is important to the future fuel independence of countries like Australia," said Macfarlane.

"Biodiesel is biodegradable and potentially cleaner-burning than the diesel it replaces. While plants, like ABC, can also result in the added benefits of more jobs, wider use of agricultural waste and broader economic activity in regional areas," he said.

Macfarlane used the opportunity to remind biofuel proponents that applications for capital subsidies under the newly-created $37.6 million Biofuels Capital Grants Program close on December 12.

The program offers up to $10 million in capital subsidies for individual new or expanded biofuels production facilities. The project must be capable of producing 5 million litres of biofuel to receive the minimum grant of $800,000.