VW, Shell, Iogen to study German
Sunday, January 08, 2006 5:16:41 PM ET
DETROIT (Reuters) - Volkswagen <VOWG.DE>,
Royal Dutch Shell <RDSa.L> and Canadian biotech
firm Iogen Corp. will jointly study whether to build
a plant in Germany that can make cellulose ethanol,
a biofuel that can cut cars' carbon dioxide emissions
by 90 percent, Volkswagen said on Sunday.
The partners signed a letter of intent at the North
American International Auto Show to explore the project.
Privately held Iogen already makes cellulose ethanol
from agricultural residue such as cereal straws and
Ethanol, an alcohol most often made from grains and
sugar cane, is blended with gasoline to reduce tailpipe
emissions in cars and trucks.
Brazil is the world's leading producer and exporter
of ethanol, derived from its huge sugarcane crop. It
already blends its domestic gasoline with 25 percent
ethanol and is looking to U.S., Japanese and Indian
markets to boost exports.
The International Energy Agency estimates that under
the most optimistic scenario ethanol could make up 10
percent of world gasoline by 2025.