Bio-fuels are becoming big news as carmakers are now offering models that can run on a variety of bio-fuel sources. 

Volvo and Ford now co-operate in many areas and they both have launched bio-fuel car models for the Irish market that have a lot of similarities.

Volvo now offers the S40 model with a 1.8 litre Flexifuel engine that can be run on bio-ethanol or petrol. This cleaner car option is competitively priced at e25,800 before delivery charges.

Design and production co-operation between these companies has resulted in Volvo’s new S40 Flexifuel model, with similar features to the Ford Focus FlexiFuel introduced over a year ago.

Volvo’s bio-fuel cars, along with Ford and Saab have been strong contenders on the Scandinavian market, where the government supports the move with more attractive tax advantages by opting for the bio-fuel route both on the day of car purchase and in terms of running costs at the pump. We here in Ireland are still lagging behind, but moving in the right direction in terms of government support.

This year’s Budget is expected to offer some new opportunities in terms of fuel efficiency and motor car taxation. But at this stage it’s a wait and see game as there are no leaks from the Department of Finance on its plans for changes to the Vehicle Registration Tax (VRT).

Car companies like Volvo are prepared and the new Volvo S40 FlexiFuel that I drove recently provides proof of that. This car is based on the standard S40 with the option of a FlexiFuel engine that can be run on ethanol fuel or petrol or a mix of both. Ford has offered the same technology.

The Volvo S40, like the Ford Focus, comes fitted with a 1.8 litre FlexiFuel engine. The engine has similar features to a standard 1.8 litre petrol engine. But there are significant changes to the fuel system as the bio-ethanol fuel is more corrosive on an engine and fuel system.

So why opt for the bio-fuel powered Volvo S40 FlexiFuel? Price and running costs are always motivation factors. The Volvo S40 1.8F is cheapest models in the S40 range, due to a government rebate on the Vehicle Registration Tax (VRT) for this model. This puts the entry price at €25,800 before delivery charges.

Next is the fuel costs – bio-ethanol is cheaper than regular unleaded petrol by about 20%, so there is a hint of a running cost advantage. The downside of this argument is that bio-fuels have slightly less energy than regular unleaded petrol so fuel economy figures are not just as good.

This means in practice that there is little to separate the standard model from the bio-fuel FlexiFuel S40 when it comes to running costs.