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| Volkswagen, Shell & Lurgi want EU biofuel duties based on C02, not quotas |
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| Friday, 21 July 2006 | |
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Volkswagen, the oil producer Shell and the plant engineering company
Lurgi are hoping to a see a boost in the promotion of 2nd generation
biofuels and their associated technology. At the Forum for Future
Energies in Berlin the companies put forward a fuel duty model based on
CO2 efficiency and sustainability criteria as an alternative to the planned quotas.
The model takes a market-based, technology-neutral approach for the
long-term promotion of biofuels at a European level.
Prof. Jürgen
Leohold, Head of Volkswagen Group Research explained, "Volkswagen is
prepared to invest heavily to press ahead with production of second
generation biofuels in Germany.
"However, to do so, we need clear,
harmonised conditions in Europe in the form a CO2-based fuel duty
model, which gives a sound long-term planning basis."
The next
generation of biofuels (BTL) use the entire plant instead of just parts
of it, for instance by using cellulosic ethanol technology to convert any lignocellular (woody) material into fuel, rather than just using corn kernals to make ethanol or palm fruit to make biodiesel.
On CO2 efficiency they are 90 percent better than conventional diesel and
still 50 percent better than biodiesel.
Alongside an exemption from
fuel duty for BTL until 2015, Volkswagen and Shell announced they would also welcome
the same tax-free status for 2nd generation bioethanol.
David Smith, Singapore
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