UK Biodiesel Maker, Retailer in Green Fuel Tie-Up
As part of the agreement, Rix Biodiesel Limited -- Britain's first company to make and market the renewable transport fuel three years ago -- will allow Global Commodities to adapt its existing vegetable oil processing plant at Hull in northeast England to produce more than 120 million litres a year.
"When the new production facility is up and running in about three months' time, UK manufacturing capacity will increase by an additional 120 million litres. It's quite a significant jump," Rix Biodiesel spokesman Paul Burman told Reuters.
Rix currently markets its "Bio Blend 5" brand at more than 100 petrol forecourts in Britain and hopes to dramatically expand when production takes off.
"Demand is far outstripping supply and we desperately need this additional amount," Burman said.
Global Commodities UK already has plans to build a separate facility to produce biodiesel from rapeseed.
The 180 million-litre plant, to be based at Lowestoft in eastern England, is expected to be up and running in 2006.
A European Union directive demands that two percent of all diesel fuel consumed in the EU must be bio-degradable by 2005, rising to 5.75 percent by 2010.