The alternative fuel industry is to receive a massive boost in the form of a €500 million investment from the German government over the coming decade.

The funding was announced by the German transport minister, Wolfgang Tiefensee, at the Leipzig car show. He said the money would give Germany a headstart in the development of alternative fuels and predicted that hydrogen and fuel cell technology would probably be ready for mass production by 2020.

He also expressed a hope that the car industry would match the government's investment by putting up a further €500 million for green fuel research.

Environmentally friendly cars that featured at the Leipzig car show included the smart forfour, which runs partly on liquefied petroleum gas (LPG). The vehicle offers significant emission reductions and is kind on the wallet because of the low cost of LPG.

The show also saw Volkswagen launch a new sustainability initiative that will see cars branded with the new BlueMotion environmental trademark.

The company's first production model carrying the eco-logo is the Polo BlueMotion, which comes equipped with a particulate filter as standard.

The car achieves a reduction of CO2 emissions of around 16g/km and consumes less than four litres of diesel for every 100 kilometres driven.


Ÿ Adfero Ltd