Raids uncover largest illegal bio-diesel haul

The large-scale production centres were located in two storage facilities close to the centre of the Buchan fishing town of Peterhead.

The illegal plants, producing fuel from cooking oil, were uncovered in a series of raids carried out last Thursday by officers from HM Revenue and Customs and Grampian Police.

Two men have been questioned by HMRC investigators as inquiries continue into the discovery of the two illegal plants. No-one has been arrested or charged.

A spokesman for HMRC said yesterday that the illicit operation was the largest so far discovered in Scotland.

He said: “Officers seized nearly 4,000 litres of illicit fuel, 750 litres of methanol, 200 litres of kerosene, pumps, equipment and business records.”

The spokesman added: “Two men were questioned by HMRC and investigations are continuing. Bio-diesel is allowed to be made, provided people keep within 2,500 litres of production in the year for personal use. It can be made from cooking oil or used chip fat and materials like that.

“But if they produce more than 2,500 litres or try and sell it, they must register with us because they then have to pay the duty on it.

“We found two plants that were operating illegally and evidence of sales. There were even pumps and filling nozzles and meters for selling the stuff.”

Graeme Anderson, the assistant director of HMRC Specialist Investigations, said: “Illegal bio-diesel sites and those involved are creating a cheap and unregulated supply that honest producers cannot compete with. They rob taxpayers of millions each year in unpaid duty and VAT, funds that could be used for essential services in our communities.

Before buying cheap fuel, motorists need to consider the real costs – although you may think you are getting a bargain, you really have no idea what you are paying for. Buying illicit fuel not only funds crime, but it also supports and encourages these dangerous activities within our communities.”

It is legal for members of the public to make up to 2,500 litres of their own bio-diesel in a year – enough to run the average family car – without having to pay tax. But the Health and Safety Executive has also published advice on the hazards of producing bio-diesel at home.

An HSE spokesman said: “Bio-diesel is produced commercially and can be bought from some petrol stations.

“However, there are ‘recipes’ available on the internet for the domestic production of bio-diesel. These usually involve mixing methanol with sodium hydroxide – also known as caustic soda or lye – and pouring the resulting mixture into vegetable oil.

“Such home production raises serious health and safety concerns, as it involves hazardous chemicals and the risk of fire and explosion.

“Making bio-diesel is a potentially hazardous process that should only be carried out in controlled conditions by people with the proper training and experience.

“At the very least, a poorly-made product could seriously damage a vehicle engine.”