ABG started the commissioning process on June 9, and will now continue to produce biodiesel at the site while undertaking further calibration of plant systems.

At 160 million litres per annum, ABG chief executive Len Humphreys said the Narangba plant would place the company at the forefront of domestic biodiesel production.

While other Australian biodiesel production facilities are largely based on proven international production techniques, the Narangba site uses proprietary ABG process technology, which it plans to license internationally.

ABG first implemented its biodiesel process technology at its 40Mlpa plant in Berkeley Vale, New South Wales, where it has been operating successfully since 2002.

In February 2006, ABG instituted a policy that guaranteed its biodiesel product would sell at a cheaper price than the gate price for fossil fuels, but chief executive Len Humphreys said ABG had not yet determined the impact of the new fuel tax legislation on its operations.

Humphreys said ABG would consult with its commercial customers to determine the full impact of the new legislation, and would advise the market accordingly at a later stage.