The 50:50 joint venture between NFAL and Babcock & Brown Environmental Investments was officially opened by Northern Territory Chief Minister Clare Martin.

NFAL chief executive Richard Selwood said the company had to date signed a three agreements for the sale of up to 114 million litres of biodiesel per annum, which represented up to 82% of the plant’s annual capacity.

Agricultural trading business ConAgra Trade Group will supply the plant with a primary feedstock of RBD (refined, bleached and deodorised) palm olein.

The modular plant was designed by German biodiesel technology group Lurgi AG.

The facility is located next to the new Darwin Industry Fuel Terminal on a site sub-leased from Vopak Terminal Darwin.

NFAL has entered into a terminal and logistics management agreement with Vopak to handle wharf movements, pipe feedstock and provide bulk storage, blending and onsite delivery to distributors of the final product.

According to NFAL, the location of the Darwin plant provides the company with ready access to global supply chain logistics, including feedstock imports from Malaysia and Indonesia, and advantageous distribution networking by road, rail and sea.

Ramp-up to full-scale commercial production is expected to begin in January, following performance testing of the plant.