CHICAGO, Ill. (Reuters) -Volks-wagen and Archer Daniels Midland have formed a research venture to develop and use biodiesel fuel for the auto industry.
The companies said biodiesel, which combines diesel petroleum with vegetable oil and fats, can power conventional diesel engines and substantially reduce emissions of carbon monoxide and particulate matter.
The pact is the first between one of the world’s leading automakers and a global agribusiness company to develop next-generation clean renewable fuels, they added.
“This agreement represents Volkswagen’s commitment to introducing clean burning and renewable fuels into the automotive industry,” said Bernd Pischetsrieder, chair of Volkswagen’s board of management.
Added ADM chief executive officer G. Allen Andreas: “Advances in biodiesel will benefit the automotive industry, the driving public, farmers and the environment as a whole.”
