Shell gives British biofuels industry vote of confidence
Shell gives British biofuels industry vote of confidence
By Johann Tasker
OIL giant Shell has thrown its weight into the biofuels market by investing £20m in a project which could see fuel produced from straw grown by British farmers.
The company has bought a stake in Iogen Energy Corporation, a Canadian company which hopes to develop the worlds first commercial biomass-to-ethanol plant.
Bioethanol is a petrol substitute made from the fermentation of sugars derived from the plant fibre in renewable feedstocks, such as straw and wood.
It is one of a range of green fuels Shell is exploring because it has the potential to reduce greenhouse gas emissions when blended with gasoline.
However, although in the advanced stages of technical development, the technology to convert biomass to bioethanol is yet to be commercially proven.
But Mark Gainsborough, vice-president of Fuels at Shell Oil Products, insisted: "Bioethanol can become commercially viable. We will be using our skills in fuel production and plant operations with Iogens globally recognised technology to reduce the cost of future production."
Iogen president Brian Foody said: "Bioethanol has the opportunity to deliver the most cost-effective and consumer friendly way to reduce greenhouse gas emissions."
The company believes that a commercial bioethanol plant could create a hundreds of jobs and boost the local rural economy.
Iogen has been a member of British Biogen, the trade association for the UKs emerging bioenergy industry, for at least two years.
British Biogen chief executive Peter Billins said: "This shows that farmers and the oil industry can work together to develop some important products."
The next step will be to persuade the government to give tax incentives so that the development of bioethanol could become a "going concern", he added. *
Oil giant Shell believes biofuel could be commercially viable.