Volvo is set to introduce a biofuel engine for its C30, S40 and V50 models. The new 1.8 liter FlexiFuel four cylinder engine puts out the same 125 horsepower as the non-biofuel version, but the E85 car qualifies for a 20 percent tax reduction in Sweden.
The FlexiFuel option will initially be available only in Sweden, where E85 has proven to be fairly popular. Volvo is playing catchup with Saab , who released powerful E85 versions of its 9-5 last year and recently unveiled E85 versions of its 9-3.
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