Some of Australia's most innovative thinkers working out of a Thornton shed have designed a gas/diesel fuel system that increases fuel efficiency by up to 20 percent.

The dual phase induction system designed by Green Fuel Systems International at CSMU Technologies uses injections of gas to increase fuel bum, resulting in increased horsepower and reduced fuel usage,greenhouse emissions and engine noise.

Mr Kilburn, operations manager and senior engineer for GFSI and CSMU, Said the work was part of the company's innovative agenda. He said he was awaitng a response from Maitland and Newcastle City councils about fitting their diesel fleets with the cost-cutting technology.