A biofuel made from whisky by-products could be in Scottish forecourts in a few years' time.

The scientists behind the project have set up a company to produce the fuel on an industrial scale.

The team from Edinburgh Napier University revealed their discovery in August 2010 and launched Celtic Renewables on Wednesday.

They say the fuel can be used in ordinary vehicles without them undergoing special adaptation.

It was developed by Napier’s Biofuel Research Centre over a two-year period, using samples from East Lothian’s Glenkinchie Distillery.

Scientists discovered that by using the two main by-products from whisky production, the "pot ale" liquid from copper stills and the spent grains known as "draff", they could produce butanol to be used as fuel.

Professor Martin Tangney said: "We found we could add these together and make a soup which we could ferment and distil off our products which would derive far more value from the original draff and pot ale and we're left with this butinol which is a direct substitute for petrol which can be used in cars as a blend or neat without modifying engines."

The scientists are confident it will be successful as it uses a by-product of one of the biggest export industries in Scotland. It is also hoped the fuel will create more jobs at distilleries.

Mark Simmers from Celtic Renewables said: "The feed stock we're using to make the fuel is a residue from another industrial process, so the carbon footprint from that is very small.

"Also that feed stock is made here in Scotland and will be here for a long time to come, so that gives us a sense of energy security. It reduces out carbon footprint and gives us a sustainable source of fuel for the future."

IN DETAIL

• New fuel could see Scotland's cars powered by whisky