Travel group ends biofuels trial

National Express, one of the UK's leading transport groups, said it had pulled the plug on a biofuels trial, amid fears that the "green" energy may be damaging the environment.

Following consultations with a number of environmental groups, the company suspended a trial at its UK bus operations which could have seen some of its London buses running on up to 30% biodiesel.

National Express said it would continue to look into alternative energy initiatives, adding that while it accepted that biofuels may have a role to play in the future it would wait for issues relating to sustainability to be resolved before pressing ahead with biodiesel trials.

Chief executive Richard Bowker said: "The issue with biofuels is complex and what appears to be the green option may not actually be green after all."

The news will cast further doubt over the green credentials of the biofuels industry, following concerns that biofuel production is destroying natural habitats and ramping up the cost of food farming.

Additionally, some scientific tests have revealed that carbon emissions from the alternative energy source could be higher than from traditional oil due to the intensive farming methods needed to produce biofuel crops, such as sugar cane and rapeseed.

National Express said it remained committed to cutting carbon emissions but was looking at investing in second generation biofuels - or non-food crop fuels such as straw and woodchips - although mass production is still a number of years off.

Mr Bowker added: "Biofuels may well have a role to play in helping us reduce the emissions of greenhouse gasses arising from transport operations in the future and we are not dismissing the role they may play in the future, but based on the evidence today I think it is vital that we wait for issues relating to sustainability of supply to be resolved before we press ahead with trials of biodiesel."

Investment in biofuels has recently been seen as a good way for companies to improve their environmental image. BP has announced a new production project with alternative energy group D1 Oils, while Virgin Trains is currently trialling biodiesel on one of its Voyager trains. Virgin Atlantic is also set to test the fuels in planes in partnership with Boeing.

Government regulations mean that by 2010 5% of all fuel sold on UK forecourts must be derived from biofuels. This could save up to one million tonnes of carbon a year - or the same as taking one million cars off the road.

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