Atiny Canadian startup company that is preparing to open a biodiesel plant in Toronto this spring says it will produce clean fuel, animal feed and human food all from the modest flaxseed.

Privately held Energy Innovation Corp., which has also developed a way to produce biofuel from used coffee grounds, said its production process creates multiple revenue streams, but no waste.

“The demand is actually 10 times more than we think we’ll be able to supply over the next 16 to 18 months,” said the company’s 27-year-old chief executive, Jon Dwyer.

A government mandate will require two per cent renewable content in all diesel fuel in 2011.