Port Kembla biodiesel plant is one step closer to construction

The construction of the plant is due to start in the second half of this year and is expected to be completed by the end of 2010.

"This is the first integrated soybean processing and biodiesel production facility in Australia and is a major boost to the Illawarra," Mr Kelly said earlier this week.

The project is expected to create 500 jobs during construction, 235 full time-jobs on completion and generate revenue of $977m, according to Mr Kelly. 

It is also expected to create about 725 jobs in related industries.

The National Biodiesel plant will make 288m litres of biodiesel annually, in turn reducing greenhouse emissions by 275,000 tonnes each year, which is equivalent to taking 187,000 cars off the road over the same period.

In addition to biodiesel, the plant will also produce 850,000 tonnes of soy bean meal for poultry and livestock.

National Biodiesel chairman Edward Dutton said soy biodiesel had been launched in NSW and Queensland and there had already been "strong demand" from the mining, construction and transport industries.

“Biofuels like biodiesel contribute to reducing greenhouse emissions and hazardous particles in our air as they burn cleaner than petroleum fuels and, being made from soybeans, it is renewable and sustainable,” he said.