The first step of INEOSs strategy will be to achieve at least 2 million tonnes of biodiesel output by 2012, with some 1.2 million tonnes by 2010.

The company confirmed that its investment in a new biodiesel production facility at Grangemouth, Scotland will proceed, with significant support being received from the Scottish Executive in the form of a Regional Selective Assistance award. INEOS Enterprises anticipates that the facility, which will be at least 500,000tes, will be operational by 2008.

Harry Deans, CEO INEOS Enterprises said: "We are delighted to have been able to work with the Scottish Executive and other key stakeholders to bring this very important investment to Scotland. The Grangemouth plant will be fundamental to our growth strategy and represents an investment of over €90 million in the region. The UK is fully committed to the increased use of biofuels as part of its energy mix and we believe that this investment will make an important contribution towards this."

In addition to the Grangemouth investment, the growth strategy will see additional investments proposed by INEOS Enterprises, potentially at the INEOS sites at Antwerp (Belgium), Lavera (France), and Wilhelmshaven (Germany) or Cologne (Germany).