Friday, February 06, 2004

Volkswagen and Archer Daniels Midland Company announced in January the creation of a joint research agreement aimed at further developing and utilizing biodiesel for the automotive industry. This is the first international agreement on biodiesel between a large auto company and a biodiesel production company.

“Given the tremendous environmental, economic and quality-related benefits of increased Biodiesel usage, we believe this Joint Research Agreement will go a long way toward advancing and furthering the development of this vital renewable fuel choice,” said Dr. Bernd Pischetsrieder, Chairman of the Board of Management of Volkswagen AG. “Volkswagen has been a leader in the development of advanced clean diesel engines and this Agreement represents Volkswagen’s commitment to introducing clean burning and renewable fuels into the automotive industry.”

G. Allen Andreas, Chairman and Chief Executive of ADM said “Biodiesel is one of the most promising renewable fuels on the horizon. This agreement clearly demonstrates the shared commitment of both our companies to developing environmentally friendly next-generation alternative fuels that address global energy needs. We are proud to enter into this agreement together with Volkswagen and believe that advances in Biodiesel will benefit the automotive industry, the driving public, farmers and the environment as a whole.”

While the details of the research agreement have not been fully released, VW customers and biodiesel stakeholders view it as an extremely positive move.

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