05-01-04 Volkswagen and Archer Daniels Midland (ADM) agreed a joint research project into biodiesel fuels for the automotive industry in what they said was the first time one of the world's largest carmakers had joined forces with a global agricultural group to develop clean, renewable fuels.
Biodiesel fuels combine diesel petroleum with natural substances such as rapeseed or soybean oil and can be used in conventional diesel engines. They are environmentally friendly and reduce carbon monoxide emissions substantially.

Biodiesel is available at some fuel stations in Europe, but has not been available in the US because of lower penetration of diesel vehicles and because the quality of diesel fuel in the US is inferior to that in Europe.
Tony Fouladpour, a VW spokesman, said: "The significance of the agreement is that we will work with the major agricultural company to help develop a higher quality fuel that could be used in our diesel engines in the US."

Volkswagen, which already sells some diesel cars in the US, unveiled for the US market a version of its Touareg sport utility vehicle that can be run on standard diesel or biodiesel fuel. The agreement with ADM comes as carmakers continue to looking for ways to reduce vehicle emissions and produce vehicles that will appeal to an increasingly environmentally-conscious motoring public.
That is partly being driven by a desire, reinforced last year by the Bush administration in the US, to reduce dependence on fossil fuels. Ford at last year's show unveiled a concept vehicle called the Model U that was made from biodegradable plastic and which could incorporate vegetable oils as lubricants.

Allen Andreas, ADM chairman and CEO, said: "Biodiesel is one of the most promising renewable fuels on the horizon. [We] believe that advances in biodiesel will benefit the automotive industry, the driving public, farmers and the environment as a whole."