Bioethanol for Megane

Renault will launch a Megane hatchback able to run on E85 bioethanol fuel later this year, promising company car drivers lower tax bills.

The 1.6-litre 105bhp engine has been converted to be able to run on a mixture of 85% ethanol and 15% petrol, meaning it qualifies for a 2% discount on benefit-in-kind tax.

Renault sees biofuels as a key driver in the quest for more environmentally-friendly cars as the ethanol is produced from renewable crops which absorb CO2 from the atmosphere as they grow.

This allows a reduction of up to 70% in the production of CO2 on a well-to-wheel basis compared with a conventional petrol engine.

Renault is also to begin trials with UK fleets of its van models which have been converted to run on B30 biodiesel.