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The project is expected to last about 3.5 years and was kicked off at Volkswagen's headquarters in Wolfsburg.

The production of biofuel is a contentious issue among environmentalists because it has been shown to compete with food crops and destroy natural habitats.  It is hoped that second generation biofuels will alleviate these fears because they will be based on crops that do not compete with food crops nor planted in sensitive natural habitats.

Dr. Frank Seyfried, Head of the Fuels and Fuel Cells Department of Group Research at Volkswagen Aktiengesellschaft, and member of the consortium, said:
"Biomass to Liquid (BtL) is one of the biofuels which can make a substantial contribution towards maintaining individual mobility. Volkswagen wants to drive forward with this development. Therefore OPTFUEL is part of the fuel and powertrain strategy of Volkswagen."

The BtL production process involves the gasification of wood residues at very high temperatures of 1,400°C. The OPTFUEL project will establish the technical basis for large-scale production of up to 200,000 tons per year.

The BtL demonstration will begin with the cultivation of 200 hectares of fast-growing willow, poplar, and robinia which will be used to produce the biofuel at CHOREN Industries' existing pilot plant in Freiberg, Germany, which already produces 15,000 tons of diesel per year.

Performance data from the Freiberg pilot plant will be modeled to identify improvement opportunities compared to the current production processes and to create the technical basis for a large-scale BtL production facility.

Using BtL products manufactured in the Freiberg plant, the automotive manufacturers participating in the project will develop a high-quality biofuel suited to present-day engine technology. Earlier projects have shown that considerable reductions in exhaust emissions can be achieved. In addition, the consortium project will evaluate the economic aspects and the potential to reduce energy and greenhouse emissions from all parts of the BtL production process. Technical issues associated with wood plantations for energy applications will also be thoroughly examined.

Ten partners from five countries are pooling their skills to optimise the production of BtL liquids over a 3.5-year project life. Consortium partners comprise the automotive companies Volkswagen, Ford, Renault and the Freiberg-based engineering company CHOREN Industries, CONCAWE, representing the European mineral oil industry, Invensys Process Systems as a technology provider for process simulation, design and optimization technologies, representatives of research institutes, IFP (France), CERTH (Greece), IITD (India) and the German project consultant SYNCOM. All project partners met in Wolfsburg for the kick-off event in February.

The European Union is supporting this demonstration project with 7.8 million euros of funding within the 7th Framework Programme for Research and Technological Development.