First In Spec Biofuels, the South African biofuels production company, is planning to spend R250-million building a biodiesel plant in the country.

The company did not say where the plant would be built, but noted that power would be generated through the conversion of waste vegetable oil into biodiesel, according to Engineering News.

Speaking at a conference on biofuels in Gauteng, First In Spec Biofuels  managing director Louis Nyiri said the company was planning to build a plant with a production capacity of 50-million litres a year of biodiesel.

First In Spec Biofuels has already signed letters of intent for around 15-million litres a year of feedstock from international companies.

The company said it would be cheaper to import the feedstock, of which it would require between three-million and four-million litres a month, from foreign countries.

Nyiri added that the company has around R50-million in equity to help fund the project – about 20% of the total estimated cost – and is looking for additional funding to help fund the rest of the project.