Western Australia’s public power provider has signed on to support the country’s first renewable diesel plant, which will turn farm waste into fuel.

The Narrogin facility will process straw, oat husks and wood waste from farms in the area into diesel.

State-owned utility Horizon Power has signed a non-binding memorandum of of understanding to purchase the diesel for its off-grid regional generators.

“We would typically produce as much straw as we do grain — we’re talking millions of tonnes through the area,” Narrogin farmer Ashley Wiese said.

“A lot of that remains in the paddock and unfortunately some of it gets burnt.”

The joint venture between WA-based oil and gas explorer Carnarvon Energy and Melbourne-based climate consultancy Frontier Impact Group received $2 million in state funding early this year.

Carnarvon’s Adrian Cook says the renewable diesel facility will also produce 8,000 tonnes of biochar each year.(Supplied: Carnarvon Energy)

Carnarvon Energy chief executive Adrian Cook said a final investment decision on the plant was expected this year and that the production of renewable diesel was expected to commence in “late 2023 or early 2024”.

If successful, the consortium plans to build more facilities around the country.

“Each plant will produce around 18m litres [of renewable diesel] per annum,” Mr Cook said.