The use of fossil fuels in transport creates enormous greenhouse gas emissions. In Canada, GHG emissions in the transportation sector were 25% in 2004.  To make meaningful progress in reducing GHGs, we must address the transport sector.  Individually, advanced new transport fuels and vehicle technologies contribute to GHG emission reductions.  However, the most effective way to reduce CO₂ in transport is through an approach which integrates both vehicles and fuels.

To achieve this, both vehicles and fuel manufacturers are spending billions of dollars to develop and deliver cleaner, more efficient systems that use less gasoline.  But typically, vehicle and fuel solutions are looked at in separate silos.

Historical Agreement Made in 2006:  Volkswagen, Shell and Iogen are Combining Fuel and Vehicle Technologies for an Integrated Solution

On January 8, 2006, Volkswagen, Shell and Iogen signed a letter of intent to conduct a study into the economic feasibility of producing cellulosic ethanol in Germany.

Left to right:  Rob Routs, Executive Director Downstream (Oil Products and Chemicals) Royal Dutch Shell; Brian Foody, President, Iogen Corporation; Dr. Bernd Pischetsrieder, Chairman of the Board of Management of Volkswagen AG.

This marks the first time that an automotive manufacturer has partnered with an oil company and a technology company to explore the commercialization opportunity of clean transport fuel such as cellulosic ethanol.  Volkswagen, Shell and Iogen face a common challenge to deliver mobility to people through the cars they drive and the fuels they use, and to do it in a sustainable way.  And the biggest challenge for sustainability is dealing with CO₂ emissions.  By working together, the three organizations are committed to meeting our sustainability challenges through an integrated approach that uses the most cost effective solutions first.

Cellulosic ethanol is one of the fuel options that:

• reduces overall CO₂ emissions from vehicles
• runs in today's cars without any need for automobile modifications or changes to the fuel distribution system and
• is economical in comparison with all alternatives including many vehicle technology solutions

Running any of the many available flexible fuel vehicles on cellulosic ethanol E85 is one of the most cost effective ways to reduce GHG emissions in transport.  Currently, there are more than 4 million FFVs on the road in the United States.  Even running today's regular vehicles on a blend of 10% cellulosic ethanol will reduce GHGs by close to 10 grams of CO2 for every kilometre driven.