Germany-based Wild is one of a growing number of companies that are attempting to meet consumer and regulatory demands that their manufacturing processes have as little impact on the environment as possible.

Wild, an ingredients and flavouring company, is building a new system in Germany that recycles water used in production. The water can then be reused by the company, Wild said in a statement last week.

The new system also processes organic substances contained in the water, such as fruit components and sugar.

"The core component of the processed water treatment system is an anaerobic

reactor that uses special bacteria to convert substances contained in the processed water into methane gas", the company said.

Around 3,600 cubic metres of this "biogas" will be produced daily, the company said. The gas will then be used in a gas engine, with an attached generator, to power certain machinery.

"We hope to commission the system, which will cost around €5m, in 2008", the company added.

The use of recycled water is becoming more and more of a trend in manufacturing, especially in drought-prone countries and in the Third World, where regulators fear that big businesses could use up vital human drinking water.

In Australia, the national government has already ploughed hundreds of millions of dollars into water recycling projects around the country in a bid to boost conservation.

In June, it donated $12.5m (€7.7m) towards a $64m (€39.5m) recycling plant in Geelong, Victoria, on condition that an equal sum was given by the state government, according to an Australian National Water Commission report.

Shell Australia has committed $26.3m (€16.2m) to the project, which was set up to save around five percent of the area's drinking water each year.