A Teesside refinery is leading the drive towards renewable fuels after securing 60 per cent of the UK biodiesel market.

Petroplus said that production of its bioplus biodiesel - a blend of Ultra Low Sulphur Diesel (ULSD) with oil from a variety of seed-based sources - had increased dramatically since it opened its Port Clarence refinery less than two years ago.

The company said the environmentally-friendly fuel was in line with the Government's energy policy, which is committed to reducing UK emissions of harmful greenhouse gas carbon dioxide, a chief cause of global warming.

There are about 1,800 tonnes of biodiesel consumed in the UK every month.

About 1,000 tonnes of that are produced at Petroplus' Teesside refinery.

The demand for the fuel is coming mainly from large fleet operators.

The company's clients include Northern Foods and Stillers as well as Newcastle, Gateshead and Middlesbrough councils.

North-East transport company Go Ahead North East has also made the switch in the past year and Royal Mail is conducting trials.

Ian Waller, business development manager at Petroplus, said: "Sales have proved every bit as robust as we had hoped and commercial operators are reporting that their vehicles' engines run just as well, and in some cases better, in terms of their miles per gallon efficiency."

Following its success, the Dutch-owned company will rebrand part of its fleet of Bioplus road tankers with a green livery.

Petroplus is part of a consortium of North-East businesses supporting a UK initiative encouraging farmers to grow rape, oil from which can be used as a supplement to diesel in engines.

The consortium, called North-East Biofuels, has applied for funding from the European Union to support a £4m project for further research and development into Biodiesel fuel production, distribution and usage.

Petroplus operates a fleet of 100 vehicles - about 15 per cent of which carry Bioplus.