Sir Richard Branson's Virgin Trains business is close to winning a concession from Gordon Brown that will launch the UK's first biofuel-powered rail service. Virgin is lobbying the Treasury for a temporary concession on duty for blended biofuel, which is seven times the levy for industrial diesel fuel. The train operator has warned that it will not go ahead with a planned biofuel trial on its trains if the government does not grant an incentive for using renewable energy sources.

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