Tesco has bought a 25% stake in environmentally focused fuel supplier Greenergy Fuels for £1.9m.

Under the deal Tesco will extend its current supply agreement with Greenergy - a wholly owned subsidiary of Greenergy International.

Tesco commercial and trading director John Gildersleeve said: “This deal demonstrates our support for Greenergy Fuel’s innovative work to develop environmentally friendly fuels.

“This relationship also collectively gives us the ability to improve our supply chain and bring long-term benefits to all.”