A renewable energy company is building a nursery at Hughenden in the Queenslands north-west, and will plant 30,000 biodiesel trees later this year.
Australian PhytoFuel aims to establish hundreds of thousands of hectares of 'kulpa' plantations across northern Australia in the next five to seven years.
Spokesman Marshall Mackay says trees will be grown at the Hughenden racecourse to give people a chance to see what's involved.
He says nut of the tree is processed to extract oil, and power can also be generated.
"The waste product, the shell from this product, will be converted into electricity," he said.
"We are just one of the many players who are trying to develop renewable energy sources.
"There are other technologies that are equally applicable - solar, wind.
"All of the players involved in these are pushing boundaries, trying to get a toehold into the energy market."
© 2011 ABC.
