St Andrews-based Sasol Technology UK Ltd has secured funding for an innovative research project that could have a major impact on the global fuel industry.

The £4.5m, four-year project to improve the efficiency of eco and engine-friendly petrol and diesel has been boosted by a £700,000 research grant from Scottish Enterprise.

Founded in South Africa, Sasol has pioneered the commercial production of fuels from coal, natural gas and other alternatives to crude oil. The research to be carried out in Scotland seeks to improve catalyst performance through a more efficient and cost-effective industrial process.

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At the same time, the nanotechnology research - involving the control and manipulation of structures on a minute scale - will bring about considerable environmental benefits.

The resulting fuel contains significantly lower levels of sulphur than crude oil-derived petrol and diesel, and has been demonstrated to result in lower particulate emissions.

Bob Tooze, Managing Director of Sasol, said the fact that Scotland was chosen as the location for this research was something to be proud of.

He commented: "This opportunity allows us to create high-quality jobs and a centre of excellence here in Scotland, the developments from which could have a global impact."

Sandy Dobbie, Chairman of Chemical Sciences Scotland, also expressed his delight that the project will be taking place in Scotland.

He said: "Sasol and Scottish Enterprise's support of this project will further cement the Scottish chemical sciences sector’s commitment to driving innovation and enhance its already valuable contribution to Scotland's economy."