A new kind of biofuel, produced from the by-products of whisky and beer, could create a £55 million market in Scotland alone, its creators have claimed.

Celtic Renewables Ltd, a spin-out of Edinburgh's Napier University, is pioneering the commercial production of biobutanol, a high-value "clean" fuel capable of directly replacing petrol. The process, which was pioneered by Professor Martin Tangney, director of Napier's biofuel research centre, can also produce valuable acetone, ethenol and animal feed.

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