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Andrew Smith profiles Regenatec, Oxfordshire's small business of the year, which is driving towards a brighter, greener future.

Rapid development of cutting edge technology has propelled biofuel firm Regenatec into the national spotlight.

The Milton Park-based company, which won the small business category at the Oxfordshire Business Awards, is one of the pioneers of research into plant oils sourced from plants grown in India.

These plants, jatropha and pongamia, are grown on marginal land avoiding the need to take up land needed for food production or, worse still, destroy rainforest to grow crops such as palm oil.

Regenatec is looking to form a new joint venture, Regenastar, by teaming up with with Indian firm Cleanstar run by Shashank Verma and Sagu Saxena, graduates from Oxford University's Said Business School.

They have planted planted one million plants on wasteland near Bombay and trials on the first oil produced are being carried out in a bid to produce the world's first "fair trade" fuel.

The partnership with CleanStar also means Regenatec has a route into India for its technology, currently the fastest growing consumer of diesel fuel in the world.

Regenatec managing director Mike Lawton said: "We hope to have commercial quantities of the oil from these plants available by the end of the year.

"The volumes will increase and it will become an attractive business model."

Meanwhile, the company, which now employs 12 people, is also developing its market in the UK as it continues to roll out its Smartveg technology.

This is a conversion kit which allows conventional diesel engines to run on new or used vegetable oil.

The company received a massive boost from the Government in July last year when duty on "home produced" fuels was abolished for the first 25,000 litres used.

This means individuals can travel up to 24,000 miles a year tax free, paying between 40 and 60p a litre for the oil from the supermarket. This can be cut to nothing if used, filtered oil is obtained from a local takeaway or restaurant.

Mr Lawton said: "We have seen a 300 per cent increase in orders for Smartveg since the tax change. We are now carrying out conversions on up to five vehicles a day and there are now thousands around the country."

Demand is set to soar still further as conventional fuel prices soar.

As a result, Regenatec has recruited Ben Mayo to help develop Smartveg this year, targeting garages which will be able to carry out the conversions independently.

Most recently, Regenatec fitted its conversion kits to ten Optare Solo buses operated by Bracknell-based Courtney Coaches.

The rest of the 34-strong fleet will be converted within the next year and Regenatec has also lined up a deal with refuse truck manufacturer Dennis Eagle.

Will Smith, business development director of Regenatec, said: "This is our first significant contract and the first time that out technology has been available as an off-the-shelf factory fitted option."

Bill Courtney, managing director of Courtney Coaches, trialled Regenatec's technology in two of his buses based at Milton Park.

He said: "I'm delighted with the vehicle performance. The fact that I can now offer near CO-neutral, low emission vehicles to my customers means I have a contract-winning advantage over competitors.

"The fuel savings alone make converting vehicles a sound business case."

Dennis Eagle has also had several successful trials with key customers and is set to start adapting vehicles next year.

Mr Lawton added: "These latest developments with two such major companies signal a huge step towards a low-carbon future for the bus and municipal vehicle industry.

"With pure plant oils carbon emissions are reduced by more than 80 per cent."

With these achievements under its belt and plenty more promised this year, Regenatec's award winning success story looks set to continue.

Mr Lawton said: "We are appearing on The Money Programme soon after the BBC heard of our success at the Oxfordshire Business Awards.

"The competition really put us on the map - it is a stamp of approval for the business and people are really taking notice of us."

FACT FILE: Name: Regenatec Established: 2005 Managing director: Mike Lawton Annual turnover: Confidential Contact: 0870 850 3573 Web: www.regenatec.com

10:43am Tuesday 22nd January 2008

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