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Volkswagen, Shell and Iogen Corporation are to conduct a joint study to assess t ...

Volkswagen, Shell and Iogen Corporation are to conduct a joint study to assess the economic feasibility of producing cellulose ethanol in Germany. Iogen’s cellulose ethanol is a fully renewable advanced biofuel made from the non-food portion of agriculture residue such as cereal straws and corn stover, and is one of the most cost-effective ways to reduce greenhouse gas emissions in road transport. The company operates what is claimed to be the world’s only cellulose ethanol demonstration-scale facility and made the first commercial shipments of this fuel in April 2004. All vehicle manufacturers warrant the use of cellulose ethanol blends, reports Shell - 10% (E10) in North America and 5% (E5) in Europe. In 2003, the European Union issued a biofuel directive in response to anticipated shortages and rising costs of fossil fuels. The directive targets 5.75% biofuels by 2010. The US Energy Policy Act of 2005 introduced a nationwide renewable fuels standard (RFS) that will double the use of ethanol and biodiesel by 2012.
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