The first phase of the proposed $1.5bn plant in the Brazilian state of Paraiba has been completed, with a new plant now expected to produce up to 10 million tonnes of diesel per year.
The plant, which was originally set to begin in 2017, has since been delayed by a court ruling that allowed it to proceed.
It will be the first major export-oriented industrial project to be built in Brazil in decades, and a major milestone in the countrys efforts to develop a new export economy.
The government has announced it will invest $1bn in the plant, but critics say it will only be a temporary solution to its fuel needs.
The plant is being built on the site of the old, decommissioned sewage treatment plant, the biggest of its kind in the world.
The facility has already generated about 80 million tonnes (mT) of fuel and is expected to generate up to 500mT (m T ) per year by 2030, with more than a third of the plant’s output from its fuel.
The environmental impact of the project is estimated at between 0.4% and 1.4%.
It has already cost about $1 billion to build, but this figure will rise by another $1billion once the construction is complete.
The first phase was completed in July, with another planned phase due to start in 2019.
It is expected that a total of 3.5mT of power could be generated by the plant every day, enough to power over 7 million homes.
The project is one of a number of projects under development in Brazil that aim to boost the country’s domestic energy sector, and is the latest sign that the country is looking to expand its export-driven economy.
While Brazil has long relied heavily on imported oil and gas, the country has been trying to build a domestic supply chain for its energy, and has a significant appetite for renewable energy sources.
The countrys main source of imported oil is from the Peruvian Amazon, but the country also needs to build up its domestic coal and natural gas reserves.
In January, Brazilian state-run oil giant Petrobras said it planned to build five new power plants in Brazil.
The company said it was aiming to build four of them by 2022.
In November, Brazil signed a $3.5 billion deal to build two nuclear power stations, with an additional nuclear power plant planned for 2020.