The plant, owned by the "Europa Mil Biogoriva" company, will produce some 40,000 tonnes of biofuel annually and employ 30 workers.
"We plan to include some 2,000 family farms in Slavonia in the production since we will need about 100,000 tonnes of oil rape annually," said Milodrag Gadze, owner and director of Europa Mil Biogoriva.
The plant is located in the village of Brsadin outside Vukovar.
There are plans for opening another similar plant in Vukovar, which will provide employment for some 200 people.
Croatia is expected to raise the share of biofuels in transport fuels to 5.75 percent by 2012 and to 20 percent by 2020.