A LONDON delivery firm using vans powered by discarded restaurant oil has been awarded the capital's top green honour.

Lowhub, a delivery firm with a fleet of just five vehicles, last night won two City of London Corporation Sustainable City Awards, known as the "green Oscars".

The firm delivers food from wholesalers to dozens of restaurants and delis across the capital. As the vans drop off supplies to restaurants, their discarded oil is collected. It is then processed, and reused by the vans as biofuel.

"We're incredibly proud of what we've achieved," said Kevin Tullett, the firm's managing director.

"While people are incredibly conscious of where their food comes from now, there is a huge flaw in the problem. It is all well and good having organic, locally sourced food, but if it's delivered by a gas guzzling van, from the wholesaler to the restaurant, all that good work is undone."

With its four biodiesel and one electric van, the firm also works with suppliers to ensure its vehicles are almost full.

"To me the idea of going out with a half empty van is just awful," said Mr Tullett. "We will always have our vans at least 75 per cent full."

The firm operates out of New Covent Garden Flower and Borough markets. It works with dozens of traders to co-ordinate supplies to restaurants.

"People generally have a fruit supplier, a root vegetable supplier and several others, all delivering separately. What we can do is go to the markets, pick all the restaurant supplies up then drop them off in one go."

Zac Goldsmith, who presented the prizes to the winners at the Mansion House last night, said the awards should provide a blueprint to help firms in the capital go green.

"Despite the immensity of the environmental challenge, the truth is, almost everything that needs doing is already being done, somewhere," he said. "If 'best practice' today became the norm tomorrow, we'd be halfway there already."

Emma Bara, sustainability coordinator at City of London Corporation, said all businesses could make changes which benefit the environment.

The other six winners

Sustainable City Award Trophy

Five Talents, Croydon

Microfinance initiative of worldwide Anglican church, helping entrepreneurs in 12 countries in Africa, Central and South America, and Asia.

Access to Goods and Services for Disadvantaged Communities

Rushley Green Time Bank, Essex

Runs a credit system, allowing residents to help each other with tasks and swap goods.

Sustainable Building

Green Structures, Twickenham

Architectural and project management firm who specialise in "green" construction and loft conversions.

Resource Conservation

Strattons, Norfolk

Boutique hotel which has worked to reduce waste, save energy and ensure all food is sourced locally.

Sustainable Procurement

Skanska, Barts and London Hospitals

The global construction firm has cut waste and transport on the site.

Sustainable Food

Vacherin, Bloomsbury

Contract catering company which sources food locally wherever possible.

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