Recycling and waste management company Sita has held discussions with food manufacturers about turning waste packaging into diesel.
According to FoodManufacture.co.uk, the company has been speaking to companies in both Scotland and south west England about sourcing material.
The company will build its first plant that will convert one tonne of low-grade plastic into 700 litres of diesel in Avonmouth, near Bristol next year.
Sita development manager Phil Holland said: “We anticipate that the waste industry will deliver the bulk of our recyclable material. But it’s evident that the food industry has a very significant issue with plastic recycling and we can certainly see a strong commercial opportunity in this sector.
“We would be seeking a gate fee for plastic collection but firms would save an awful lot in landfill tax.”
Sita does not intend to use PET for the process, but will use low grade LDPE film and carrier bags for the process as well as contaminated packaging.
Eventually, Sita plans to build 10 plants that will produce 42 million litres a year of diesel and up to 15 million litres of kerosene.