Shell to add biocomponent to diesel fuel

As of the first of June 2006 (Thursday) Shell will blend 2 percent biofuel in its diesel. This was announced Wednesday by the Anglo-Dutch oil company.

The oil company started last January with blending biofuel to it’s Euro 95 gasoline. Biofuels help to reduce the exhaust of carbondioxide by car drivers.

To stimulate the use in the Netherlands, the government has decided that, for this year, the 2 percent added biocompents will be free of taxes. Without the temporary tax exemption, biofuels would be more expensive then regular diesel and gasoline. In 2007 the addition will be required by law, which will result in a dropping the tax break. It is expected, that the price per liter will rise a few cents because of that. Between now and 2010, the required added volume of biofuel will rise to 5.75 percent in increments of 0.75 percent a year.

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