Green Fuels NZ is planning to at least double production of biodiesel at the former Solid Energy plant to 1 million litres a year or more.
Managing director Martin Johnson says it will continue to produce its Biogold fuel from recycled cooking oil.
He says using fresh oil pressed from rapeseed grown on South Island farms is not economic at this stage.
Lyttelton based fishing, ship repair and transport company Stark Brothers, a long time user of biodiesel, is a partner in the venture.
