HOQUIAM, Wash. -- A new plant to produce large amounts of biodiesel fuel officially opens Wednesday in southwest Washington.

The Imperium Renewables plant plans to produce 100 million gallons a year by the end of this year, using canola, soy and other crops to produce the fuel.

The new plant is on 12 acres of land at the Port of Grays Harbor, between Aberdeen and Hoquiam.

Martin Tobias, CEO of the Seattle-based company, says the plant will add about 30 percent to the United States capacity for producing biodiesel.

Biodiesel is clean-burning fuel made with renewable resources and can be used in diesel engines alone or in mixtures with petroleum-based diesel.

"We could completely displace every ounce of petroleum we import with American-grown, American-produced renewable fuel," said John Plaza, president and founder of Imperium Renewables.

Officials hope it will be a cornerstone for an economic resurgence in the Grays Harbor region, which has faced tough times after a decline in the timber industry.

"For the first time, we can see American farmers bringing money back home to their pockets, so they can continue to operate in a feasible fashion," said Ted Durfey, a canola grower.

Imperium Renewables is the parent company of Seattle Biodiesel, which currently produces 5 million gallons of biodiesel a year out of a plant in Seattle.

It is working with Washington state farmers to secure vegetable oils to produce the biodiesel.

Reserchers at the plant are looking at oil from scrub glass and even algae as future ingredients.

"If that were to work we could, grow enough algae-based food stock to supply all of America's petroleum consumption on less than one-percent of our landmass," Plaza said.