Volkswagen is launching a one-make Bio-CNG-powered race series in 2010, and the company claims this fuel reduces CO2 by 80 per cent.

Iveco is to introduce a natural gas powered Daily in the UK following the success of a six month trial which demonstrated a 62 per cent saving in CO2 over diesel.

The International Energy Agency has produced a report which examines second generation biofuel technologies produced from crop and forest residues and from non-food energy crops.

Transport Minister Andrew Adonis has set out plans to take a more cautious approach to biofuels, as part of the Government's response to concerns about the indirect environmental and social impacts of producing them.

The government should stop funding biofuels and use the money to halt the destruction of rainforests and peatland instead, a think tank has said.

Lotus Engineering is to conduct a research study into engine efficiency when utilising sustainable second and third generation biofuels.

Transport Secretary, Ruth Kelly, and Environment Secretary, Hilary Benn, today set out a new approach to biofuels based on recommendations from the Gallagher review, including that the introduction of biofuels in the UK should be slowed down to take into account emerging scientific evidence about their sustainability.

The Renewable Transport Fuel Obligation (RTFO) comes into force today (15 April), requiring 2.5% of all road fuels sold to come from biofuels, rising to 5% by 2010. It’s claimed that this will save 2.5 million tonnes of carbon dioxide by 2010 and is part of a package of measures being taken to reduce the impact of transport on the environment – although some critics claim that biofuels can cause more harm than good, and so a review into biofuels is also underway.