A kit converting diesel cars to run on used oil from chip-fryers has been developed by Oxfordshire electronics experts.

Mike Lawton, who runs Futuretec, at Milton Park, near Abingdon, has installed one in his own car.

He said: "I have an arrangement with the Caf Choice at Milton Park. I strain out the old chips and bits of cod.

"You can just start the car and off it goes -- there's no danger of damaging the engine, because the electronics control the whole thing.

"We have a few prototypes running and we are talking to a couple of local outlets -- garages who are interested in the idea. We also have potential parts distributors for Europe."

Mike Lawton and Jolyon Tidmarsh set up Futuretec after being made redundant from Bookham Technology, which shed hundreds of jobs during a downturn in demand for its telecoms network parts.

They are aiming to raise up to £800,000 from business investors to develop various hi-tech ideas.

Mr Lawton said: "The main project for the company is not the smart veg oil kit -- that's a short-term revenue earner.

"We have developed Smart Cellar, bringing innovative technology to beer dispensers in bars and nightclubs. We have a non-disclosure agreement with a brewery. It's good to have an order in for it."

He said the cooking oil kit for engines was a personal interest.

"I bought some valves from a German company, but I was not impressed. We have put in some intelligent kit and it works wonderfully.

"The great benefit is the ability to use old waste oil, which normally gets incinerated or goes into landfill, where it can get into the water table.

"It used to be used as animal feed, but new regulations mean it has to be treated as a waste product."

Jenny Cox-Rogers, of Caf Choice, said: "I think it's a very good idea if we can help use something that we would otherwise throw away.

"I wouldn't mind doing it myself if it was cheaper than diesel -- as long as I don't have to smell it."