OTTAWA — A number of questions have surrounded increasing the use of biofuels, and the impact it will have on the price of food has been the main diet of a few skeptics.

While the effect biofuel production has on the price of crops – namely corn and soy bean – continues to be debated, Royal Dutch Shell is moving forward with researching "next generation" biofuels and using Canada as a base.

Shell and Iogen Corporation recently announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol.

Iogen’s first demonstration commercial plant opened in Ottawa in 2004. The terms of the agreement include an investment by Shell in technology development with Iogen Energy Corporation, a jointly owned development company dedicated to advancing cellulosic ethanol.

Iogen is a biotechnology firm specialising in cellulosic ethanol – a fully renewable transportation fuel made from agricultural residue that can be used in today’s cars.

After a rocky beginning, the biofuel industry is making strides to minimize negative impacts of using the fuel alternative and additive. Recently, ASTM International passed a handful of ASTM specifications for biodiesel blends.

The changes include: Changes to the existing B100 biodiesel blend stock specification (ASTM D6751), finished specifications to include up to 5 percent biodiesel (B5) in the conventional petrodiesel specification (ASTM D975), and a new specification for blends of between 6 percent biodiesel (B6) to 20 percent biodiesel (B20) for on and off road diesel.

Cold weather issues and batches of "junk biodiesel" polluted the image biofuels a few years ago, and with government mandates of biofuel content on the horizon, customer acceptance is important.

By creating biofuels that will have less of an impact on world food costs, Shell is hoping to bolster customer acceptance even further.

The collaboration with Iogen is a part of Shell’s investment and development programme in biofuels, particularly in ‘next generation’ biofuels using non-food feedstocks. The fuel is made from raw materials such as wheat straw.

Shell’s global biofuels programme also includes collaborations with Choren (on production on BTL), Codexis (on enzyme conversion) and Virent (on development of biogasoline), as well as a joint venture called Cellana (development of marine algae for vegetable oil).