Australia’s tyre waste and fuel security problems could soon be behind us with a Gladstone oil refinery saying they have found a solution.

Southern Oil Refineries has successfully conducted large scale pilot tests on its biodiesel made from old tyres says manager Ben Tabulo.

"[We've proven] renewable diesel can work in Australia's engines and does have the same efficiency on the road," he says.

"The renewable diesel … has been refined from post-consumer waste, mainly mixed tyre crude oil and refined into 100 per cent drop-in diesel.

"Our laboratory has shown this diesel is indistinguishable from fossil diesel and will give all the performance that you expect from fossil diesel."