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The likely transition from today's conventional to future alternative fuels will be discussed. It will be shown that in the very long term renewable fuels might be the most promising road fuels with respect to low CO2 emissions. In the short and medium term, however, liquid alternative fuels will prevail being produced initially from natural gas and later increasingly from biomass. Methanol, Ethanol, GTL Hydrocarbons and other fuels are still under study since lowest WTW CO2 emissions and overall system costs are not yet clarified. The availability of alternative fuels in large quantities will depend on the costs for production and infra-structure, and not least of all, on the market benefits of the resulting fuel / power train systems in a holistic assessment. Cost trends for conventional and alternative fuels will be discussed.

This paper addresses the use of neat, indigenous biodiesel in advanced Mercedes-Benz passenger cars. Modern, unmodified EU3 Common-Rail diesel engines with second generation common rail technology were used to determine the effects of neat biodiesel on performance and emission characteristics. The biodiesel was made from the seeds of the Jatropha Curcas plant and sourced from the Central Salt and Marine Chemicals Research Institute in Bhavnagar, India. The production of biodiesel and the vehicle tests are part of a PPP project, funded jointly by the DaimlerChrysler AG and the German DEG. The project aims at providing additional jobs and income in rural Indian areas along with reclaiming unused wasteland. The test vehicles were operated for a cumulative 8000 kilometers with an intention to expose the vehicle and fuel to diverse climatic conditions.