Biofuels could be developed in the UK if the government and industry takes a closer look at issues surrounding sustainability, according to the Home Grown Cereals Authority.

Alastair Dickie, the crop marketing director, was speaking on BBC Radio 4's Farming Today after the government's chief scientific advisor warned against rushing into policies promoting the use of biofuels.

Mr Dickie said: "There hasn't been much biofuel produced so far, so the recent rise in prices is as much to do with the rising population and the need for food for these people as it is for biofuels."

He also said the production of biofuels will help to reduce greenhouse gas emissions and are not responsible for the rise in global food prices.

According to a report by Envirolink, the northwest has "excellent" biofuel manufacturing locations near the ports of Liverpool and Birkenhead, and alongside the Manchester Ship Canal. Feedstock sources in the region and chemicals industries that could supply a biodiesel plant are two other reasons why the northwest could be at the forefront of supply.

Mr Dickie continued: "With the exception of certain extreme situations in the United States, all of the biofuels that are likely to be on offer in the petrol forecourt after April the 15th improve the greenhouse gas emissions compared to fossil fuels."

This time last year, the Northwest Regional Development Agency launched the Climate Change Action Plan to address the threats and opportunities presented by global warming.

Its main aim is to ensure that by 2020 the northwest is the leading region when it comes to tackling climate change.