Despite the arrival of the new 308 hatch, Peugeot has launched a flex-fuel version of the previous-generation 307 SW that goes on sale next month in several European countries. Powered by a modified version of Peugeot’s 1.6L four-banger, the new car will be able to run on ethanol blended E85 fuel mix.

Flex-fuel versions of the smaller 206 and a 307 sedan have been on sale in Brazil since March of 2005 but this is the first time a Peugeot ‘BioFlex’ car will be sold in Europe. The modified engine develops 110hp (82kW) at 5,800rpm and max torque of 153Nm (112lb-ft.) at 4,000rpm.

Many European countries are fortunate to have biofuel infrastructure in place. This is especially true in Sweden where carmakers have been quick to take advantage of the new fuel by releasing several models capable of running on E85. None more so than Volvo, which has just added a flexfuel option for its entire lineup bar the XC90 SUV.