The 150 million litre per annum facility is expected to be fully operational by the middle of next year, which the company said would make it the first commercial biodiesel producer in the state.

“Axiom Energy will produce biodiesel from renewable plant oils and animal fats, employing proven technology. The facility will produce virtually zero atmospheric emissions complying with EPA and local regulatory requirements,” Axiom managing director Danny Goldman said.

Axiom said it had entered into preliminary agreements for all lease holdings at the site in Geelong with Toll Holdings and Terminals.

“Toll Holdings and Terminals – have demonstrated their support for the project by providing the opportunity for Axiom Energy to secure a long-term lease holding for a one-hectare site and facilities for the handling and storage of bulk liquid feedstock and product,” Goldman said.

“The combined investment in Geelong will total approximately $50 million and will be made up of

Axiom Energy’s biodiesel manufacturing facility as well as the investment in expanded storage

facilities by Terminals Pty Ltd.”

Axiom did not disclose its share of capital costs for the project nor how it planned to fund construction of the facility.

Axiom said the new plant would provide the city of Geelong with significant additional revenue, with around 16 ships set to visit the facility annually.

Victorian Minister for Energy Industries and Resources Theo Theophanous also welcomed Axiom’s investment in Geelong.

“The decision by Axiom Energy and its partners to make this investment is great news for local families as it will lead to 20 new full-time jobs and 20 indirect jobs,” he said.

Axiom was due to list on the Australian Stock Exchange late last year but withdrew its prospectus and refunded the $A37.9 million raised in its initial public offering after changes to the Australian Government’s method of taxing biodiesel production.

It is unclear whether Axiom will seek to re-list the company.