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Virgin chairman Richard Branson is planning to create a new eco-resort in the Caribbean, according to reports.

The entrepreneur plans to turn Mosquito Island, a body of land he bought last year for $13.2m (£6.7m), into the world's most environmentally friendly resort.

It will source all of its energy from wind turbines and solar panels, while the food served at the destination will come from local, organic sources.

Mr Branson said that Caribbean resorts should be making better use of the natural resources at their disposal to help the tourism industry become more environmentally friendly.

'It is actually inexcusable for the Caribbean to need to use dirty fuels anymore when it has all these natural resources on its doorstep,' he said.

'We've managed to prove on paper and now we'll prove in reality that the Caribbean could run with the determination of governments on solar and wind.'

Mosquito Island lies east of Puerto Rico on the eastern end of the British Virgin Islands chain, about a mile from the 74-acre Necker Island, which Mr Branson bought for $171,000 in 1976.

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