All the diesel engines produced by the firm since 1998 can be run on biodiesel, with the latest units able to cope with a blend of diesel and 30% oil extracted from plant material without any modification.
To demonstrate the practicality of using biofuel, Peugeot has used the fuel to power racing cars at the RC Cup championship. The cars, based on the 2002 Diamond concept car, run a blend of 50% biofuel and 50% diesel.
And, according to figures from the Society of Motor Manufacturers and Traders, Peugeot sold the highest number of low-emission CO2 emission cars in the UK during 2005.
A spokesman said: ‘Peugeot can clearly say it is doing its bit to protect the environment.’