November 17, 2005

DaimlerChrysler vows to push biofuel technology

FRANKFURT (Reuters) - DaimlerChrysler, the world's
fifth-biggest carmaker, pledged on Thursday to help promote the
use of biofuels by developing engines that can run on higher
mixtures of the alternative energy sources.

"DaimlerChrysler is committed to creating the technologies
that will ensure vehicles can run on fuels with up to 10
percent admixtures of biodiesel or bioethanol," it said after
meetings with the United Nations Environment Programme (UNEP).

"Until now, it has been possible to fill up with fuels with
a 5 percent admixture content," it added in a statement.

It also promised it would work with other automakers and
oil companies to lobby for adjusting fuel standards and
creating incentives to promote biofuels.

Biofuels based on such common commodities as rapeseed oil
and sugar cane are growing in popularity in Europe as countries
try to cut greenhouse gas emissions -- blamed for global
warming -- and crude oil import bills.

The European Union has set a non-binding target of 5.75
percent biofuel content by 2010.