The continuing high price of DERV has led to an unlimited public demand for biodiesel from a Gloucestershire producer.

Working from rented farm buildings, Andrew Thomas started his new venture – turning vegetable oil into biodiesel – in July this year.

Two months later, with a regular supply, he is processing 2000 litres of biodiesel a week and yet demand continues to exceed supply.

Mr Thomas now hopes to reach a capacity of 100,000 litres a year by July 2006.

Mr Thomas is considering using oilseed rape.

“I would love to give it a bash. To use OSR just seems the next logical step.”

But for now Mr Thomas believes the 27p/litre fuel duty, combined with OSR at 135/t, means it is not yet a viable proposition despite the growing demand.