Archer Daniels Midland Co. and Volkswagen AG have announced a landmark decision by Volkswagen to extend warranty protection for the use of biodiesel blend fuel in all of its U.S. market diesel powered automobiles. This announcement represents the first major initiative to emerge from the Joint Research Agreement on Biodiesel established by the two companies last year.

The warranty protection, which covers biodiesel blends of up to 5% (B5), marks a significant milestone in the development of a national market for biofuels. Biodiesel, already a popular alternative fuel, is seen by Volkswagen as a key element of a long-range fuel strategy that relies on efficient, clean diesel technology for the use of an increasingly broad portfolio of renewable fuels.

"Our decision to extend warranty coverage for diesel engines fueled by the B5 biodiesel blend is driven by the shared desire of VW and ADM to capitalize on the significant environmental, economic and quality-related benefits of increased biodiesel usage," said Frank Witter, CEO of Volkswagen of America.

Source: PRNewswire