Henry Colbeck's new onsite biodiesel-processing facility has begun recycling waste oils collected from shops across Scotland and the North of England.
Based in Gateshead, the company's 32 vehicles use half million litres of fuel every year and the £100,000 investment in its own processing unit will see the company return to its roots.
Set up in 1893, Henry Colbeck originally supplied paraffin and fuel, before moving into the supply of edible oils.
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The company remains under the ownership of the Colbeck family and is run by chairman, Bill Colbeck, his son, Douglas, and managing director, Andrew Naylor.
Mr Naylor said: "New legislation means users of cooking oils must dispose of their waste fats more responsibly so the collection of the material has become a growth area in the industry over recent years.
"We are able to sell the used oils and fats on to producers of bio-diesel, but as we consume so much fuel ourselves it made sense for us to investigate how we could make cost savings and at the same time make a serious environmental contribution. Biodiesel made from waste oil is greener than green as it overcomes the food versus fuel dilemma associated with biodiesel production from virgin oil.
"We have been using a 50% blend in our trucks for the past three months. Initially, our cost savings on fuel will be off-set by the need to service the vehicles more regularly, but we are confident that this will reduce and that we will also be able to increase the blend."
Advisors from the Manufacturing Advisory Service (MAS) funded a project by Wayne Hayes Consultants to source and manage the installation of a bio-fuel production facility at the company's 4000 square foot facility in Gateshead.
(JM)
