The Tullibardine malt whisky distillery in Perthshire has linked up with Celtic Renewables, a spin-out company from Napier University's Biofuel Research Centre (BfRC) in Edinburgh, to turn the by-products from the whisky making process into butanol, which can be used to fuel vehicles.
Douglas Ross, managing director of Tullibardine, which spends £250,000 disposing of its by-products every year, said: "We are delighted to be partnering Celtic Renewables in this innovative venture, the obvious benefits of which are environmental. It takes a cost to us and turns it into something that has social as well as commercial value."
The project is being supported by a grant from the Scottish government's Zero Waste Scotland initiative. Celtic Renewables aims to build a processing plant in Scotland, with the hope of building an industry that could be worth £60m/yr.
• More on this report from BBC Scotland
11 October 2012 - Felicity Murray