Volkswagen in Favour of Promoting Biofuels

In the view of the three companies, 2nd generation biofuels and the associated technology should be supported more than conventional biofuels because the potential for CO2 savings is twice as high as that of 2nd generation fuels.

Volkswagen is in favour of introducing a taxation model of this kind at European level instead of quota regulation. “We want to actively shape the change to sustainable mobility and to set the course for the future now”, said Prof. Jürgen Leohold, Head of Group Research. “Volkswagen is prepared to make considerable investments to advance the manufacture of 2nd generation biofuels in Germany. However, for this we need clear conditions harmonised at a European level in the form of a CO2-related tax model, which will give us long-term planning certainty."

Unlike 1st generation biofuels, the manufacture of 2nd generation biofuels uses the whole plants and not just parts of them. With respect to CO2 efficiency, they have a great edge over the realistic alternatives. In comparison to conventional diesel, 2nd generation biofuels have an advantage of around 90 per cent. The technology for manufacturing synthetic biofuels (Biomass to Liquids = BTL), which is made of wood waste, is the most advanced. The great efficiency of BTL is ensured by the possible addition of conventional diesel in any ratios; this means that there are no additional costs incurred for the infrastructure.

Volkswagen, Lurgi and Shell Deutschland are currently doing everything they can to advance the introduction of 2nd generation. They need reliable general conditions for as long as these fuels are not yet economically capable of competing with conventional fuels. Volkswagen is also in favour of fostering competition among biofuels, so that the most efficient manufacturing methods win through and wrong allocations are avoided. The companies welcome the special treatment of 2nd generation biofuels until 2015 intended by the Federal Government. Volkswagen and Shell expect that, in addition to the intended tax exemption for BTL to 2015, the same conditions will also apply to 2nd generation ethanol.