Renault will launch its first bioethanol car in the UK at the end of 2007 when the Mégane hatchback E85 goes on sale.

This version  uses the 1.6 16V 105 engine with modified fuel tank, injection system and combustion chambers. The vehicle was developed with input from the automaker’s Brazil unit, whcih has sold E100 FlexFuel versions of the Clio and Mégane since 2004.

The benefits of E85 fuel are widespread and are particularly relevant for the UK fleet market. A new tax incentive sees a 2% discount on employees’ taxable car benefits where the car is capable of running on E85 fuel.