Rising fuel prices are good news for an Oxfordshire company developing a way of using 'stranded' gas fields.

Oxford Catalysts, of Milton Park, is piloting small-scale production of synthetic fuels using gas reserves too small for conventional technology.

In an update to the stockmarket, the company said market conditions for tranforming biomass and waste into liquid fuels are also favourable as governments and industry recognise this could supplement oil-based transport fuel, while reducing carbon footprint.

Chief executive Roy Lipski said: “The group made impressive commercial progress last year.

"The market for small scale synthetic fuels production is poised for rapid growth, and the group remains on track to take advantage of this significant opportunity as one of the leading technology providers in the sector.”