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Renewable fuels agency unveiled

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Transport secretary Ruth Kelly has announced the creation of a new body to manage the UK's commitment to biofuels.

The renewable fuels agency will be responsible for the day-to-day running of the government’s renewable transport fuels obligation, which comes into force in April.

The government hopes that by 2010, five percent of all fuels in theUKwill come from biofuels, which it says could save 2.6-3m tonnes of carbon dioxide a year.

The agency will be chaired by Professor Ed Gallagher, former chief executive of the Environment Agency.

Ms Kelly said: “The creation of the renewable fuels agency marks a big step forward in creating a strong, long term market for biofuels in theUK.

"I want the agency to make sure the obligation is run effectively, but I also want it to take the lead in making sure the biofuels we use in this country come from sustainable sources, saving the most carbon possible.”

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