The plant was proposed for Huon Aquaculture’s Parramatta Creek, East Sassafras site.

The proposed plant would convert up to 850 kilograms of existing process by-product and waste streams into oil, fishmeal and protein concentrate an hour. 

EPA director Wes Ford concluded the extraction plant could go ahead if managed in an environmentally sustainable fashion.

“Various environmental issues were considered in the assessment, particularly in the management of liquid effluent and odours,” Mr Ford said.

“Conditions have been imposed to require disposal of waste water and the undertaking of an odour survey post commissioning of the activity.”

A Huon Aquaculture spokesperson said the business has “a comprehensive waste management plan”. 

“Part of that planning is establishing appropriate contingencies for processing and value adding our waste streams,” she said.

“The company is currently working with local commercial operators to process our waste and we do not expect that will change in the near term.”

Mr Ford’s assessment and the environmental conditions which must accompany the permit have been passed on to Latrobe Council, who will review planning before a permit is issued.