Australian Agricultural Technologies (AAT) has announced it is one step closer to building a mustard seed oil processing facility in the Riverina, with Leeton or Griffith to be the likely location.

The proposed facility is the first of three that is planned in the broader eastern belt grain-growing region in the next five years.

AAT held a workshop earlier this year which introduced producers about the concept, with the company labelling growers in the region as being "proactive".

"We have been very impressed with the overall pro-active nature and comradery of both mayors and their respective teams," AAT managing director of connection equity Owen Matheson said.

Growers across the region have committed to growing mustard seed, with the AAT "muscon" variety grown with the same approach and gross inputs as canola, but has a broader sowing window and higher tolerance in dry country areas.

AAT will also go to contract on a fixed price that is 15 per cent above the spot price on canola at the point where growers opt to lock in.

The new facility, when completed, will have a value of $18 million in land, infrastructure and intellectual property.

Leeton Shire Council mayor Paul Maytom and council manager of economic development, tourism and events manager Peter Kennedy have met with AAT on three occasions.

"It's obviously only early days, but for the company to say they will build in the Riverina, that gives us a very good look in," councillor Maytom said.

"It would be a new industry that has enormous potential for our region.

"It's also another practical cropping alternative for our growers, not to mention the possible job opportunities.

"We've been to three meetings with AAT and have found it all to be very positive.

"I think it has been fantastic to be able to be included in the process."