An innovative start-up that promised great things in Whyalla has entered into voluntary administration.
Bio-fuel company Muradel had previously received millions of dollars from the state and federal governments and employed 14 staff locally.
Last year the business worked with technical experts from India and Japan during its quest to turn recycled tyres, biosolids and algae into bio crude oil, a process named Green2Black.
However the company is now under the control of Andrew Fielding and Nicholas Martin from BDO The administrators were appointed on April 3.
Muradel set up a $10 million demonstration plant in Whyalla, an investment that received support from the federal government's Australian Renewable Energy Agency in the form of a $4.5 million grant.
The Whyalla City Council supported the company's operations, leasing around 4 hectares of land for its demo plant which opened in 2014.
Muradel also won a $500,000 grant from the state government in 2016 to purchase tyre-shredding equipment to be used in the process of turning tyres into biofuel and fund a plant to comercialise the operation.
The first meeting for the company's creditors will be held on Friday at BDO's Adelaide headquarters.
The purpose of the meeting will be for the creditors decide whether to appoint a committee of inspection, and whether to remove the administrators from office and appoint new administrators.