A CENTURY-OLD company has devised a way of powering its vans and potentially hundreds of other firms' vehicles nationwide - with cooking oil.

Dexter Paints has spent £250,000 opening a new production plant and set up a new company, Dexter Biofuels, to produce eco-friendly bio-diesel.

The non-toxic green fuel is made from recycled vegetable oil and can be used in pure or mixed form with diesel to run diesel engines.

It does not emit harmful carbon dioxide and is non-biodegradable, meaning the company's carbon footprint has been reduced.

Dexter Biofuels is producing 20,000 litres of the diesel at its plant in Trafalgar Street, Burnley.

The company used its team of chemists and scientists to develop the bio-fuel division. It is among just a handful of firms in the country to develop a green fuel that conforms to EU emissions standards. Dexter is now in talks with a number of bodies, including Lancashire County Council, Lancashire Fire and Rescue and the City of Bradford Metropolitan District Council about using the fuel in their vehicles.

Alan Sharples, managing director of Dexter Paints said: "The majority of fossil fuels are expected to run out in the next 30-40 years and we are going to become more reliant on biofuel alternatives.

"As we have the capability to produce this product in-house it makes sense for us to diversify and take advantage of the increasing market for biofuel. It's a great product."

Dexter Paints was set up in 1907 and produces paints for domestic use and as well as for sectors including the car industry.

The firm employs 40 workers and has a turnover of £3.15million.

The new venture was funded with the help of NatWest in Blackburn, which is part of the the RBS Group, and backed by the Environment Agency.