VW, Shell and Lurgi Propose Taxation Scheme for 2nd-Generation Biofuels
20 July 2006
At the recent Forum for Future Energies in Berlin, Volkswagen, Shell and the engineering company Lurgi proposed 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, and the companies hope that such an approach would boost the development of second-generation biofuels such as biomass-to-liquids (BTL) synthetic fuels.
Volkswagen is prepared to invest heavily to press ahead with production of second generation biofuels in Germany. However, to do so, we need clear, harmonized conditions in Europe in the form a CO2-based fuel duty model, which gives a sound long-term planning basis.—Prof. Jürgen Leohold, Head of Volkswagen Group Research
Volkswagen and DaimlerChrysler are working with CHOREN on the production and testing of SunDiesel, a BTL synthetic diesel. Shell has a partnership with CHOREN to develop Biomass-to-Liquids technology that uses CHOREN’s gasification process as a front-end to Shell’s Gas-to-Liquids technology.
Volkswagen, Shell and Iogen are conducting a joint study to assess the economic feasibility of producing cellulosic ethanol in Germany. (Earlier post.)
Alongside an exemption from fuel duty for BTL until 2015, Volkswagen and Shell would also welcome the same conditions for 2nd generation bioethanol.
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