Environmentalists have opposed the development of a new biofuel plant at Avonmouth, England, which is expected to be fuelled by palm oil.

Renewable energy group W4B said the ‘green’ power station would run on 70,000 tons of vegetable oil a year.

But a local Friends of the Earth group has raised concerns that the plant will not be sustainable as demand for palm oil far exceeds supply.

All the palm oil currently being produced is already being used and any increase in demand would lead to deforestation of rainforests to make way for bigger palm plantations, according to the group.

A spokesman for W4B said the group was committed to independent monitoring of the fuel sources to ensure they are 100% sustainable, reports the BBC.

Approval for the scheme is expected to be given later this month.