The facility will be the first commercial biodiesel plant of its type in the state and is expected to be online by November, with a production capacity of 45 million litres of biodiesel per year.

Located on a 1.5 hectare property in Port Adelaide, the plant will employ 30 people directly with 100 extra jobs coming indirectly from investment.

The South Australian Government is currently trialling biodiesel fuel in Adelaide’s bus and train fleet and is enthusiastic about the fuel’s 60% reduction in particulate pollution and 50% reduction in carbon monoxide production, according to ARF managing director Darryl Butcher.

“Biodiesel is the only alternative technology that can turn an existing transport fleet into a renewably-fuelled fleet overnight, and its environmental benefits are unquestioned,” he said.

ARF is expected to record a post-tax profit of $7 million in its first year, according to Butcher.