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Renault's joining the bioethanol bandwagon with E85 versions of the Megane hatch and estate.

Like Saab's bioethanol cars, the new Meganes will be able to run on E85 bioethanol – which is 15 per cent petrol, 85 per cent biofuel – or ordinary unleaded petrol in any combination.

The new cars use an adapted version of Renault's 1.6-litre, 104bhp engine. The fuel tank, injection system and combustion chamber all needed modification.

Renault used expertise developed in Brazil, where it has been selling bioethanol versions of the Clio and Megane since 2004.

The new Meganes go on sale in France at the end of June, for €200 (£135) more than the standard petrol equivalent, hitting UK showrooms a few months later at the end of 2007.

No official prices have been announced for what will be Renault's first UK bioethanol car, but the two per cent reduction in company car tax now valid for biofuel-powered cars should make the new Meganes a fleet favourite.

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