Bio-Energy Resources Ltd plans to invest $18 million in a jatropha biodiesel plant in the capital, Lilongwe.
The plant will draw from a farmer jatropha production programme in which approximately 30,000 farmers will be involved.
The company says the plant will start trial production in the last quarter of this year, with commercial production scheduled for 2016.
In the first year it will produce over 111,000 litres of straight vegetable oil, but by the end of five years, it plans to produce four million litres and, at project maturity, to reach a production level of 29 million litres of jatropha oil.
Spokesperson Abbie Chittock says Berl is supporting over 30,000 local farmers who are growing jatropha for biodiesel production. He says the company plans to extend its farmer base to 130,000 over the coming five years.
The Malawi government is promoting the use of biofuels as an alternative to fossil fuels; and is involved in a series of experiments on the use of ethanol to power vehicles.