The Victorian Government has officially opened the state’s new $4.8 million biodiesel at Shell’s Newport Terminal.


"The Barnawartha refining facility represents a $60 million investment in regional Victoria, which can produce up to 60 million litres of biodiesel each year," State Minister for Manufacturing and Exports Richard Dalla-Riva said.


"Shell's investment in this facility will give people in Victoria greater access to biodiesel produced in regional Victoria, which will support jobs and investment and expand the local biofuels industry."


The Newport facility will allow for the distribution of up to 50 million litres of biodiesel into the state’s retail distribution channels.


"This will improve the diversity of fuel supplied in Victoria and underpin the future of Australian Renewable Fuels' (ARF's) Barnawartha plant and its 24 employees. It will also create many more indirect jobs that support the regional supply chain," State Minister for Regional and Rural Development Peter Ryan said.


"Replacing diesel with biodiesel reduces emissions. Biodiesel is non-toxic, biodegradable and suitable for sensitive environments. It has a higher flashpoint which makes it safer to store and transport."


Mr Ryan said the Victorian Coalition Government had provided $2 million funding towards the storage facility.


Shell Vice-President of Downstream Australia Andrew Smith said after a lengthy and robust quality assurance process he was confident of supplying a B20 product of consistently high quality to the Victorian market.


"This has been a collaborative effort between Shell, the Victorian Government and ARF in Barnawartha," Mr Smith said.