A REFINERY plans to increase production to keep pace with demand for its environmentally-friendly fuel.

Petroplus disclosed yesterday it is considering stepping up its biodiesel capacity at its Teesside plant, where it currently produces 20,000 tonnes a month.

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

Arising from that, it was disclosed yesterday, Teesside is being considered as a location for a £25m biodiesel plant that would use thousands of tonnes of oilseed rape crop as a raw material.

For the past year, the company has been making Bio-Plus, a blend of its conventional ultra-low sulphur diesel with oils from a variety of renewable seed-based sources, at its Teesside Crude Oil Refinery, at North Tees.

Introducing the blend into its fleet of 22 road tankers has resulted in reductions in harmful exhaust emissions as well as an improvement in the overall miles-per-gallon fuel efficiency of the vehicles.

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