Work is on schedule for the March 2012 opening of an algae production plant in the Shoalhaven.
The algae bio-fuel plant will capture the carbon dioxide emissions from the Manildra plant in Nowra and use it to grow algae.
The algae can then be used a number of different ways as a biofuel.
Algae Tec's executive chairman, Roger Stroud, says it is the first operation of its kind that uses emissions to create fuel.
Mr Stroud says an independent group will study the Nowra plant to prove the commercial viability of its operations.
"That study will be our third party validation to show to the world what we are already comfortable with, that what goes in, which is carbon dioxide, nutrients, water and sunlight, comes out the other side as algae, as a high-yield growth system," he said.
Original article available here.