The funding comes after a feasibility study conducted by the Department of Energy and Climate Change or UK DECC which granted release of funds worth $6.6 million. Other investments will come from Regional Development Agency One North East amounting to $4.1 million.

The plant will be built in Tees Valley in the United Kingdom where the INEOS Seal Sands is. The factory is expected to come up with 30 million liters of carbon-neutral fuel and produce electricity that will be for expert amounting to 3 MW from about 100,000 tons of commercial and household biodegradable wastes. This amount of fuel production can cover for the electricity demand of about 6,000 households and 250,000 vehicles running on E10 fuel.

The advanced factory is scheduled to for completion by 2012 pending certain final agreements. The project will also create 350 construction jobs and 40 permanent positions when the factory is operational. There are also plans to integrate a biorefinery plant and high technology waste treatment come 2015.

The technology used by INEOS combines biochemical and thermochemical processes to complete the process of biofuel production using industrial and household waste materials.

The idea dates back to 2005 from MIT experts who suggested the use of E85 boosting to take advantage of the properties of ethanol and other alcohols with similar composition. Ethanol has excellent evaporative cooling effects when it interplays in the fuel air mixture when it enters the cylinder.

The concept will require a vehicle to have two fuel tanks and of course acceptance of the owner for a dual fueling concept.

The E85 concept resulting to suppressed knock can allow compression ratios to be increased and may permit higher boost for turbo or super charged engines. The technology will ultimately lead to downsizing of engines without sacrificing the performance of the vehicle.

The team from MIT developed an ethanol boosting system to commercialize their idea in 2006. They are now collaborating with the research and development team of Ford.

The use of the E85 boosting system with the gasoline PFI will make car owners and consumers realize that gasoline can be used more efficiently with their cars as gasoline is the fuel primarily used in most vehicle models.

Conclusions of the study established that the concept can hold water as a more cost efficient biodiesel alternative. Construction of an engine using the technology will also be a lot less than building a diesel engine. This engine will also be able to pass strict emission guidelines because of the high efficiency in terms of conversion of the fuel into energy.

One should know that compared to gas, ethanol is one of the most eco-friendly fuel and is also renewable. Many scientists are of the view that one day ethanol will become the world leader as far as renewable fuel is concerned. The reason behind this is that there are many sources of this fuel, whereas gas and diesel, which are currently used as the primary source of fuel, have a limited stock and are in danger of getting depleted after a few more decades.

Ford has seen this catastrophe that is going to strike the planet and is hence planning to join the race and become the leader by manufacturing about two million vehicles that can run using ethanol. Ford has also tried out other alternative fuels in its car but since ethanol is being viewed worldwide as the alternative fuel of choice and one that can be processed easily and will have no dearth of supply, this is the alternative fuel that Ford is targeting.

In response to this point and also as a way to augment a deteriorating lumber industry, several groups and scientists from Norway are developing processes to turn wood chips into the oil needed to make ethanol. By the year 2010, gasoline and diesel sold in Norway will require close to six percent bio fuels in the mixture. And since there are so many timber farmers, it seems reasonable that wood chips should be used as the raw material for the resulting oil.

But unlike food sources, trees are much more difficult to liquefy. The specific process of turning wood chips from a solid mass to a liquid form is the basis of the present research and development. And the biggest dilemma is creating a substance that resembles fossil fuel oil as closely as possible.

As companies involved in forestry look for new ways to use trees, they are not quick to embrace wood chip ethanol as an answer to making bio fuels because they feel the venture is not profitable. Despite the skepticism, however, Norske Skog signed a contract with the Association of Norwegian Forest Owners and a new bio fuel prototype factory will be ready by 2009-2010 in Follum near Hanefoss.