Southern Oil Refining has been granted environmental and planning approval to build its AUD 16 million (USD 12.2 million) advanced biofuels pilot plant. The pilot plant will be built at Northern Oil Refinery located in Yarwun, Gladstone, Queensland.

Southern Oil, based in Wagga Wagga, New South Wales, is a private, 100% Australian-owned company, which has been re-refining waste oil since 2001.

General Manager Tim Rose said the state government has given its approval for the pilot plant and preparations are now underway to start construction.

If the pilot plant is successful, Southern Oil will then build a commercial-scale plant which will cost AUD 150 million (USD 114.8 million). When built, the commercial-scale plant is projected to create more than 200 jobs in the surrounding areas, where smaller plants to process waste into liquid feedstock, which will then be converted to biofuels in the Yarwun plant, will be built.

“We will be preparing the plant in September and October and will be running trials by November and December,” Rose said. “At the moment we’re already upgrading our systems with extended hydrant systems and new tanks.”

The Queensland government is providing funding assistance for the project.