The Centre for Low Carbon Futures (CLCF) believes the use of liquid air could significantly boost the efficiency of the UK's logistics sector.

Its latest report showed that buses, vans and refrigerated lorries could be far more environmentally-friendly and cheaper to run if this type of fuel is used instead of diesel and petrol.

Fuel prices continue to cripple haulage companies and the government has come under intense pressure to lower duty rates, as UK-based firms are falling behind their European rivals who can buy diesel far more cheaply.

The CLCF's study - entitled Liquid Air in the Energy and Transport Systems: Opportunities for Industry and Innovation in the UK - also indicated the use of liquid air could create a storage industry worth at least £1 billion per annum, as well as securing the nation's energy sector and cutting greenhouse gases.

Professor Richard Williams, pro-vice chancellor of the University of Birmingham, said liquid air is the "missing piece of the puzzle" in the quest to solve Britain's energy crisis.