The UK could benefit from commercial waste turned into fuel to power cars.
Finnish-based magazine paper company UPM Kymmeneand renewable fuel supplier Lassila & Tikanoja are currently running pilot tests to produce bioethanol from the pulp-based waste created by the paper industry.
In the production concept developed by UPM and L&T, ethanol and energy are produced from commercial and industrial waste, such as paper, cardboard, wood and plastic.
By developing waste processing units, Finnish energy company St1 Oys biofuel division hopes to produce 70 million litres a year of bioethanol by the end of 2011.
The companies hope to manufacture a cost-effective second-generation biofuels for traffic in Europe without endangering the raw material supply of the forest industry.
The firms say that biofuels produced from waste could help tackle climate change and help the EU reach its renewable energy targets.