The contract will represent a purchase of about 15% of the total output capacity of ABG’s new Queensland production facility at Narangba, north of Brisbane. The company did not disclose financial details.

Freedom operates 28 fuel outlets in south-east Queensland. Managing director Matthew Morland said his company was keen to offer its customers the pricing and environmental benefits offered by biodiesel fuel.

“Freedom Fuels wants to remain at the forefront of the industry, and biodiesel is set to become a regular part of the transport fuel market over the next 12 months,” Morland said.

ABG claims to be Australia’s leading commercial provider of biodiesel and a licensor of its biodiesel production process.

It currently operates a 40M litre pa facility at Berkeley Vale, north of Sydney. The company’s 160M litre pa Narangba facility will begin commissioning in June.

ABG says it has developed its own process for producing biodiesel, which involves considerably lower capital cost than many competing international technologies.

The production process uses tallow, used cooking oil and vegetable oil as feedstock and produces biodiesel and glycerol. ABG sells biodiesel in bulk.