Insurer Norwich Union will offer motorists with bio-ethanol vehicles a 15 per cent discount on their car insurance.

Bio-ethanol is made from crops and can be used with any blend of conventional petrol in a flexible-fuel vehicle (FFV) to reduce CO2 emissions.

Although it still needs to be used with catalytic converter technology, which includes a pgm catalyst, biofuel prolongs the life of converters as a result of its lower sulphur levels.

"We at Norwich Union are extremely keen to embrace new, environmentally-friendly technology through our insurance products," explained Paul Ross, head of motor partnerships at the insurer.

He added that he was delighted to be able to help customers to prevent climate change.

The deal will be available on the UK's first bio-ethanol-powered car, the Ford Focus FFV, which is today on display at the green-dominated London International Motor Show.

The environmentally-friendly Focus has been on sale since August last year, with most buyers hailing from near Britain's only bio-ethanol pumps, which were set up by Morrisons in Somerset and East Anglia.

Commenting on the Norwich Union deal, Ford's European sustainability director, Andy Taylor, said: "Ford is on track to secure car market leadership for 30 successive years in 2006.

"As leader, the onus is on us to pioneer affordable technologies, such as FFVs, which address issues such as CO2 emissions and fuel security," he added.

Ÿ Adfero Ltd