FUEL derived from our rubbish and shipped to Scandinavia helped a Fife Council waste company save £2.2 million. 

That was in its first two years of operation and Resource Efficient Solutions (RES) reckon they'll deliver a further £1.3m this year. 

The waste and resource management firm is owned by the council and said the savings would help towards bridging the council's huge budget gap. 

Councillor John Wincott, chairman of RES, said: “To be able to return savings of this order in challenging trading conditions is very welcome news and a tribute to the teams involved. 

"The flexibility that we now have as an arms-length company has enabled us to react quickly to make up revenue shortfalls in key areas like commodity prices by innovating and expanding of core businesses, such as commercial waste collection and landfill. 

"Our shareholder, Fife Council, faces huge financial challenges for the foreseeable future. 

"Our main objective is to keep growing the business so that we can make a significant contribution to meeting that challenge."

The company hope its most recent development, refuse-derived fuel for export to Sweden and Denmark, will continue to pay off. 

The fuel is used to produce energy and heat and 2,500 tonnes were shipped earlier this month, with a contract to supply 30,000 tonnes per year to Scandinavia. 

It is currently looking at how to increase production and success here is helping to offset the lower prices for recycled materials such as scrap metal, textiles and waste paper, which have impacted on the actual savings made. 

RES collects, recycles and treats commercial and industrial waste and produces renewable energy from rubbish and landfill gas, as well as wood biomass fuel, and consults on climate change and energy efficiency. 

It operates the rubbish tips, such as the Lochhead landfill site north of Dunfermline, which has a £15m facility that turns garden waste and food scraps into renewable energy. 

It works in both the public and private sector and directly employs 200 people. Expected turnover for 2016-17 is £32m.