The plant is expected to produce 40 million litres of biodiesel per year at full production and employ up to 12 people.

Biodiesel is a cleaner burning fuel made from vegetable oils, animal fats and recycled cooking oils and is considered to be one of the most effective ways to reduce greenhouse emissions from diesel engines.

The plant is owned by Biodiesel Industries Australia, a consortium made of local Hunter Valley businessmen Peter and Andrew Hill as well as Maitland Diesel and Bloomfield Colliery. It also includes US technology provider Biodiesel Industries Nevada.

With concern about the decline in Australia's oil self-sufficiency, biodiesel is being promoted as an Australian-made alternative fuel that will ensure energy security by replacing imported fuel products.