A COMPANY aiming to become the first biodiesel producer in south Essex could be in business by the end of next month.

Pioneering firm Rainbow Fuels has moved into its unit at the Charfleets Industrial Estate, Canvey, and is aiming to start production of the green fuel as soon as they receive a prevention of pollution control permit from the Environment Agency.

This is expected to be granted at the end of April, and company directors Simon Lee and Colin Newman expecting to start trading soon afterwards.

The company received planning permission from Castle Point Council back in December.

They have now issued a public notice signalling their intention to start production of the fuel, which is made by converting vegetable oils into fuel that can be used in most unmodified diesel engines.

Mr Lee said: "We have got the machinery installed now, but we cannot start to produce the fuel commercially until we get the go-ahead from the Environment Agency, which should be at the end of April.

"We are trying to sort out the distribution of the fuel now, but it looks like we will mainly be selling to larger firms."

Biodiesel produces up to 78 per cent fewer carbon dioxide emissions that ordinary diesel and is becoming increasingly popular, particularly in mainland Europe and in the US.

Mr Lee had previously been concerned about the cost of disposing of glycerol - a by-product when making biodiesel - but he was confident the hurdle had been cleared.