April 4, 2005. Copyright 2005, Graphic News. All rights reserved

Alternative motor fuels set for growth
By Mark Rutter

LONDON, April 4, Graphic News:  Although alternatives to petrol 
and diesel have been around as long as the motor car itself, 
their use has been minimal. With the recent increases in oil 
prices, unrest in the Middle East and mounting concerns over 
global climate change, ÒbiofuelsÓ -- so called as they are 
produced from plant material -- look set to take off. 
DaimlerChrysler is the latest manufacturer to commit to biofuel, 
stating at last monthÕs Geneva Motor Show that it will soon begin 
production of vehicles designed to run on a synthetic diesel.

Biofuels, unlike fossil fuels, are derived from renewable sources 
and do not contribute to a net production of greenhouse gases. 
Ethanol is probably the most widely used biofuel. Brazil has 
invested heavily since the 1970s in exploiting its large sugar 
cane crop to produce ethanol. As a result, around 40 percent of 
all new cars sold there can use petrol with any blend of alcohol 
-- Òflexible-fuelÓ vehicles.

Flexible fuel cars are also popular in the United States, where 
small quantities of ethanol, most often derived from corn, have 
been added to most conventional petrol for a number of years to 
improve engine performance. A blend of 85 percent ethanol and 15 
percent petrol, known as E85, is now becoming a popular choice 
there, as it is in Japan and South Korea. Most of the major car 
manufacturers have vehicles on the market capable of using E85 in 
these countries.

In Europe there has been less impetus. Efforts to develop 
alternatives to fossil fuels have traditionally focussed on 
vegetable oils derived from specially grown plants. However, the 
2003 EU Biofuels Directive set a target of 5.75 percent of all 
vehicle fuels sold to be derived from renewable sources by the 
end of 2010. It has already led to the introduction of duty 
reductions for biofuels in several member states, which is 
translating into an expanding market.

DaimlerChrysler meanwhile, together with Volkswagen, have been 
collaborating with Choren Industries to develop a synthetic 
diesel. Known as SunDiesel, it can be made either from crops such 
as willow specifically grown for energy use, or from waste wood 
or other plant material.

Tests have shown that SunDiesel can significantly reduce exhaust 
emissions, helping older vehicles to comply with strict European 
standards. Together with new engine design, emissions of the 
greenhouse gas carbon dioxide and other air pollutants can be 
reduced by up to 90 percent compared with conventional diesel 
engines. Despite SunDiesel currently costing around three times 
as much as conventional diesel to produce, differential duty 
rates in favour of biofuels should close this gap soon.

DaimlerChrysler will start to manufacture cars adapted to run on 
its SunDiesel as soon as the technology can be developed to 
produce enough of the fuel. At the moment there are plans to 
build a commercial plant in Germany capable of producing 200,000 
tonnes per year by 2008. The company is predicting that it will 
gain a market share of 10 percent for SunDiesel in Europe by 2015.
/ENDS