A bill which will boost the use of biofuels in cars has been hailed by leading producer Green Biofuels Ireland (GBI).

The Energy (Biofuel Obligation and Miscellaneous Provisions) Bill 2010 has been passed by the Oireachtas and is expected to be signed into law shortly.

The bill introduces a biofuel obligation from 1 July 2010 and is expected to become law within the next few days.

Following implementation all petrol and diesel sold in the Republic will have to include at least 4.166% biofuel.

This will reduce Ireland's carbon footprint in line with EU regulations.

The Bill is expected to ensure 220 million litres of fossil fuels will be substituted with biofuels within a year.

This will increase to the EU regulatory 500 million litres by 2020.

Biofuels are exempt from carbon charges.

Green Biofuels Ireland (GBI) has welcomed the Bill.

Chief Executive Officer of GBI Nick Tierney, said: "The new biofuels obligation is good news for the environment, for the economy and for consumers."

"Biofuels like biodiesel are green, clean and renewable, reducing carbon emissions and lessening our dependence on imported fuels," he continued.

GBI estimate this Bill will be the equivalent of removing 25,000 car omissions each year.

"It is important that Ireland remains to the fore in championing the use, development and expansion of the biofuels sector," concluded Tierney.

GBI employs 22 people in New Ross, Co Wexford and comprises of over 4,000 farmers.