STAGECOACH TO LAUNCH FIRST UK TRIAL OF BIO-ETHANOL POWERED BUS OUTSIDE LONDON

9 August 2006

• Two-week test of Scania vehicle to evaluate carbon reduction technology
• Trials in Merseyside, Yorkshire, Tyne and Wear, and Greater Manchester
• Buses of the future could run on sugar beets to protect environment

Stagecoach is to conduct the first UK trials of a bio-ethanol powered bus outside London in a move that could lead to the company’s vehicles being powered by sugar beets in the future.

A Scania OmniLink ethanol bus is being tested for two weeks from 28 August to evaluate the green technology for potential use in Stagecoach’s 8,000-vehicle fleet in the UK.

The pilot study vehicle will operate in Liverpool, Barnsley, Sheffield, Newcastle and Manchester.

Ethanol can be produced from sources such as sugar beets, sugar cane, and other forms of bio-waste.

Production and supply of ethanol as a fuel has expanded rapidly in recent years and interest is growing in its use to develop more environmentally friendly public transport systems.

Ethanol buses are already in operation in Sweden, Spain, Italy and Poland, delivering significant reductions in carbon dioxide, nitrous oxide and particulate matter.

Brian Souter, Stagecoach Group Chief Executive, said: “Buses are already helping the environment by reducing the number of car journeys in our towns and cities, but we are always looking at ways to improve the sustainability of our transport operations.

“Ethanol is an excellent renewable fuel, which has a number of environmental benefits. We are looking forward to assessing this vehicle and the potential of this technology for our bus operations in the UK.”

The Scania vehicle involved in the trial uses pure ethanol with a 5% ignition improver to ensure compatability with a conventional diesel engine.

Bo Martinsson, General Manager - National Accounts, Scania (Great Britain) Limited, said: "Scania is delighted to be involved in this groundbreaking series of trials with Stagecoach in the UK.

"With around 600 ethanol-powered Scania buses delivered to municipalities throughout Sweden over the past 17 years, the technology is thoroughly proven in service and widely acknowledged as being environmentally beneficial."

The UK Government is encouraging the use of renewable fuels as part of its drive to cut carbon emissions. Construction of a new bio-ethanol processing plant is underway at British Sugar's factory at Whissington in West Norfolk and production is due to start later this year using excess beet previously used as insurance against crop failures.

Stagecoach is involved in a number of its own environmental initiatives. It recently expanded the use of biodiesel to 1,800 vehicles in the UK in a move to reduce greenhouse gas emissions and improve fuel efficiency. It is now used at 28 depots in Scotland, and the North-east and North-west of England.

For the past year, Stagecoach has also been using the next-generation fuel additive Envirox™ across its entire UK bus fleet. Tests delivered more than a 5% cut in fuel consumption and an associated decrease in vehicle emissions.

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