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.