A civil court action involving the directors of Green Day Energy has seen the shutdown of their pilot biomass plant in Richmond.
Directors David Hutchinson, a former LNP president, and Brad Carswell, a former LNP candidate, are involved in a legal dispute which has seen allegations of misuse of company funds levelled against Mr Hutchinson.
As part of the dispute between the two directors, Green Day Energy was also placed into voluntary administration and Mr Carswell was allegedly removed as a director by Mr Hutchinson.
Speaking outside court in Brisbane today, Mr Carswell said he hoped the outcome would be good for the company and the environment.
"I've dedicated the last 15 years of my life on an innovative idea where we turn a noxious weed into clean green energy, and we hope today I can take back control of the company I started and get on with the job," he said.
Richmond Shire Mayor John Wharton is optimistic the plant will reopen once the court matter is settled.
"All I can say is that I'm very confident that they will be back in business when they sort our their internal problems...and get back to work," he said.
Cr Wharton said the plant was not currently operational and had not been operating for about six weeks.
"They have a small plant here...and they have employed contractors," he said.
"They would have about 400 tonnes of prickly acacia on the ground in town here, that's stockpiled, that they were working on when this (court case) happened."
Mr Wharton agreed it was disappointing for the local economy.
"However, all the contractors as far as I am aware have been paid and everybody is fine so all good," he said.
"I'm confident they will be back."
The large-scale commercial trial testing the properties of the biomass created from prickly acacia got underway in Richmond at the start of this year in February.
Green Day Energy's aim was to supply 150 tonnes of biomass to one of the region's large minerals processing operations in place of thermal coal.
The renewable energy company announced the development of its trial in September 2021 receiving a federal government $5.5 million grant in April 2022 to help with the construction of the $10 million pilot plant.
The term of the grant was to run June 3, 2022, until December 7, 2023.