Autoversicherung: Bio Fuels Project Set Up in East Germany

A major centre for the research into bio-diesel has been set up in the former East Germany. Chief partners in the project are Shell and the local firm Choren. The centre has created over 150 jobs in an economically depressed region and VW and Daimler Chrysler have also invested in the project. All in all so much investment represents a breakthrough in the search for a viable non-mineral based fuel within the EU.

Initially a test facility will be built which will be followed by the construction of a full size plant. It is in fact the first project of its type in the world. Upon completion it will represent the sum of 400 million Euros of investment. Shell confirms that the medium term aim is the construction of the full scale plant but it is by no means clear to what extent the state will support the research financially.

The pilot facility will process wood, straw, maize and household waste into diesel. The production capacity will amount to more than 200 million litres annually from 2009. It is planned that the diesel will be marketed as Sundiesel and it will be possible to mix this fuel with other diesels in order to reduce emissions and improve the performance of the vehicle.

In comparison with the annual consumption of diesel in Germany (50 million tonnes) the pilot yields are a drop in the proverbial ocean. Nevertheless the construction of this facility is groundbreaking for it has so much potential. While Shell’s competitor BP is concentrating its research and development efforts on solar energy, the Shell / Choren project represents the most serious endeavour to manufacture a viable non-mineral based, low emission fuel.

Manufacturers are following the developments in Mecklenburg very closely. With conventional fuels they are obliged to calibrate their motors according to the grade of the diesel in order to optimize their performance. With synthetic fuels it works the other way round. Engine manufacturers can pass on guidelines on to manufacturers simply by analysing the qualities of the biofuel at first hand. In general terms such an analysis reveals that engines running on Sundiesel produce substantially less damaging emissions and therefore require no catalytic converters. Indeed the emissions will have practically no odour, are sulphur free and have an ideally neutral influence on the environment.

Of course the fact that no bio fuel has gone into real mass production in Germany means that other financial implications for the drivers of the Federal Republic are unclear. An example of this would be the matter of Autoversicherung, or car insurance. Will premiums be weighted to favour cars running on Sundiesel or equivalent products? This remains to be seen, but the current political climate, mirroring the climate more generally, is changing and Merkel has mooted that such incentives are indeed in the pipeline.

So nearer the time it would certainly be a good idea for drivers on German roads to compare the prices, perhaps with an online Preisvergleich, and combine saving money with saving the planet.