In a 10ft-by-20ft tent behind his office at Ornamental Ironworks, Robin Gray is producing what for some might be an answer to rising fuel costs.

Mr. Gray turns used cooking oil, which is usually thrown out with the garbage and burned at Tynes Bay, into fuel capable of running in any diesel engine.

Commonly called biodiesel, the fuel is both cleaner and less expensive than regular diesel. While diesel costs more than $7 a gallon at gas stations, Mr. Gray is selling biodiesel for $5 a gallon.

He's been selling the alternative fuel for several months, and he has already found a number of loyal customers, some who have even told him that their engines run smoother and quieter with the environmentally friendly fuel.

"The idea of biodiesel appeals to a lot of people," he said. "I've only gotten positive feedback."

All the used cooking oil comes from the Island's restaurants, who change their cooking oil frequently. Mr. Gray collects the oil, filters it, and processes it with alcohol and lye.

"It's kind of like brewing wine or beer," said Mr. Gray.

Once the process is complete a couple of days later, the result is as much as 50 gallons of a honey coloured liquid which looks nothing like the cooking oil that it came from.

"Biodiesel is as toxic as table salt and as biodegradeable as sugar," he said. Mr. Gray also said that it could be drunk without ill-effects, but he warned that the taste is terrible.

In the US, many biodiesel producers have become concerned with rising food prices, which have caused the cost of production to rise. In some cities, like San Francisco, biodiesels have become so popular that the theft of used cooking oil has become commonplace, but for now, Mr. Gray isn't concerned about a lack of oil.

"It seems to be plentiful," he said. "Every week we see more used cooking oil than we can actually use."

If the product's popularity increases, as Mr. Gray hopes, he is confident that he will be able to increase production to meet demands.

Mr. Gray doesn't plan to stop his environmental efforts with biodiesel. He has already begun to import wind turbines, which he hopes will become popular on the Island along with solar panels.

"Belco makes power in Pembroke, but by the time it gets to Dockyard, there's a 60-percent line loss," he said. Using resources like waste oil and wind, Mr. Gray suggests that Bermudians can help the environment and help save money at the same time.

So far, the only downside of biodiesel is that it may make your fellow drivers hungry.

"It makes your exhaust smell like french fries," he said.