However Morwell company Willaton Transport is using the mix in combination with diesel fuel.

The mixture creates biodiesel, an alternative fuel source which can help prolong engine life and more importantly help the environment.

Willaton Transport operation manager Bernie Willaton has replaced most of his fleet's fuel with biodiesel.

About 60 trucks have been running for the past year on biodiesel, which Mr Willaton said had reduced the company's annual output of carbon dioxide (CO2) by 874 tonnes.

The saving was equivalent to the annual CO2 emissions produced by 73 Australian households or 203 cars.

``It's definitely cleaner and we have had no dramas since switching over,'' Mr Willaton said.

``We've had no fuel filters blocking and the trucks perform as they would on petroleum diesel, maintaining vehicle performance, pay load capacity and distance range.

``(Biodiesel) just came up and we had to look at some other ways because there had to be an alternative and it is cleaner, there is no doubt about that.''

The company has been using about 40,000 litres of the blend a week, which was made up of 20 per cent biodiesel and 80 per cent petroleum diesel.

``There are inferior products out there so you have to make sure you are given the right standard,'' Mr Willaton said.

``It is good to go out there and have a look around and you just have to make sure when you find biodiesel it is from a reputable supplier.

``Converting to biodiesel is a simple way to reduce our carbon footprint and the fuel is comparatively priced and it performs just like regular diesel.''

Mr Willaton said there were many companies switching to biodiesel and predicted that the switch to gas for his company wasn't too far off either.

He said alternative sources were a necessity in this day and age when most fuels were environmentally hazardous and expensive.

Research by CSIRO shows that a B20 and B100 fuel can save a company between 15 to 75 per cent of CO2 fuel-based emissions.

Biodiesel also reduces other emissions such as particulate matter, carbon monoxide and sulphur dioxide, all air pollutants under the Clean Air Act.

Mr Willaton said the company had experimented with stronger concentrates of biodiesel and was even running forklifts with 100 per cent biodiesel.