A new Transport 21 initiative plans to have around fifty commercial vehicles running on pure renewable plant oil before the end of 2007.
The biofuels project was launched today at the bus & coach show in the RDS in Dublin.
The project is being run by the Department of Transport and the German-Irish chamber of commerce, and is the first pilot of its kind.
Under Transport 21, which is the Government's €34.4 billion transport investment plan, there is funding available for 75% of the price of engine modification kits for commercial vehicles to enable them to use renewable biofuels.
'Pure plant oil technology is used all over the EU and Ireland now has the opportunity to benefit from the experience of other countries, and establish a sustainable biofuels for transport industry,' said Ralf Lissek, CEO of the German-Irish chamber of commerce.