Bioethanol is made from grains and sugar cane, instead of fossil fuels, and offsets about 70% of fossil carbon emissions.

The Somerset Biofuel Project, together with partners in five other countries, has applied for European funding to develop its use as a transport fuel.

The project includes Wessex Water, Somerset County Council and Ford.

It follows an initiative in Sweden where the Ford Focus "Flexible Fuelled Vehicle" has been introduced.

The result of the bid is expected in August 2005 and, if successful, bioethanol would be available in Somerset from March 2006.