WA Agriculture and Food Minister Kim Chance officially opened the plant on Friday morning, commending BlueDiesel for its work in developing new processing technologies.
"BlueDiesel's research efforts and persistence has resulted in a process that has faster reaction and separation than alternative systems," Chance said.
The minister said a key feature of the BlueDiesel process was its ability to produce large volumes of pure biodiesel using portable equipment.
The plant is located in the industrial suburb of Welshpool, and will extract biodiesel from canola oil at a scale suitable for use in regional and remote communities.
One BlueDiesel unit the size of a 20-foot shipping container can produce more than one million litres of biodiesel annually, according to the developers.
The process is said to produce 2.2 litres of pure biodiesel in the time taken to produce one litre using conventional processes.
"It is an exciting time for alternative fuel production in WA," Chance said.
"This pilot shows innovative technologies are emerging that provide practical ways of obtaining dramatically cleaner fuels at a viable cost."
However, Warton said he was concerned that the new Fuel Tax Bill would hinder further investment in the sector.
"A robust biodiesel industry will contribute to enhanced security of energy supply and positive economic, health, environmental and regional development outcomes in this state," Warton said.
"We need a tax regime that will support the development of these technologies – not reward the continued use of non-renewable fuel sources."
