A high level of local content within the Biodiesel Producers new biodiesel plant has provided significant benefits for the company, including better through life support options and reductions in import duties.

Biodiesel Producers Ltd (www.biodieselproducers.com.au) is an unlisted public company that has constructed a 60 million litre biodiesel facility at Barnawartha, near Albury-Wodonga. This $55 million facility has created 24 new jobs in regional Victoria and southern NSW, injected over $40 million of capital expenditure into the local economy.

The Biodiesel Producers plant will use trans-esterification technology to convert tallow (the most difficult to biodiesel feed stock to process), into a fuel that meets all international standards. The plant employs final stage distillation technology to produce the Biodiesel ensuring consistent quality. The plant will only use locally sourced raw materials such as tallow, used cooking oils and vegetable oils though is also be capable of switching between materials allowing for change of feedstock as market prices vary.

With professional assistance from ICNNSW Southern Regional Manager Klaus Baumgartel, Biodiesel Producers developed and utilised an Australian Industry Participation Plan (AIPP) for the plant construction and commissioning.

The AIPP’s objective of cost effective and timely delivery of the project by optimising the ANZ content has been achieved. Despite the plant being based on Austrian technology, ANZ companies (and local regional companies in particular), won in excess of 60% of the project work.

Local engineers and tradespeople have now acquired experience with and knowledge of the Austrian equipment that forms the heart of the plant, and this capability is now available for efficient through life support.

The application of an AIPP to the project also allowed Biodiesel Producers to access the Commonwealth Government Enhanced Project By-Law Scheme (EPBS). By providing for duty free access for equipment packages not available from Australia, the EPBS saved considerable up front project costs.

In addition to assisting with capital equipment requirements, Mr Baumgartel also assisted the project by identifying local sources of base feedstocks and chemicals, and identifying potential markets for biodiesel by-products.

The plant was successfully commissioned in December 2007, and is now producing quality biodiesel for numerous customers.