The world’s first bio-diesel fuel made from algae has been successfully test-driven in Wellington by the Energy Minister.

Marlborough-based Aquaflow Bionomic Corporation announced this year it had produced the world’s first bio-diesel derived from algae from local sewage ponds.

Aquaflow spokesperson Barrie Leay says the next step is to increase capacity to produce one million litres of bio-diesel from the Marlborough sewage ponds over the next year.

Energy Minister David Parker and Green Party co-leader Jeanette Fitzsimons drove a car powered with the fuel on Friday afternoon.

Americans will ignite a love-affair with diesel-powered cars in 2007 that will eventually reach European dimensions, while hybrids will remain a niche option, revealed as more of a feel-good publicity stunt than a serious method of powering cars efficiently, economically and at one with the environment.

That is the bet European automobile manufacturers are making as they talk the talk of gas-electric hybrid engines to show they care for the environment, but walk the walk down the diesel trail.

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