The additive lowers the temperature at which tallow-based biodiesel solidifies, a problem which causes fuel flow difficulties.

Flinders University Materials and Bioenergy Group leader Stephen Clarke said there was a huge potential market for tallow-based biofuels.

"The additive that Flinders has developed removes one of the major impediments to the use of tallow-based biofuels and this market could expand considerably, perhaps to around one billion litres a year," Dr Clarke said.

The university's industry partner, Meat and Livestock Australia, has secured a provisional patent over the additive which can lower the solidification temperature of tallow-based diesel blends to minus 6 degrees celsius.

The temperature change will boost the potential to use tallow-based biofuel in colder parts of Australia and cooler climates in Europe.

Biodiesel fuel is generally prepared from a blend of lipids, such as used cooking oils, tallow and vegetable oils such as canola, soyabean and palm oil.