Lyondell Chemical Company has announced plans to produce and market a low-emission fuel that can help cars pass stringent new environmental legislation.

The automotive fuel component ETBE [ethyl-tertiary butyl ether] will be made at the firm's plant in Fos-sur-Mer, France.

ETBE works well when blended into gasoline to produce a much cleaner fuel that produces relatively small amounts of exhaust emission.

The fuel is derived through the process of reacting bio-ethanol (from biomass) with isobutylene and is capable of cutting emissions across a range of substances including carbon monoxide, volatile organic compounds, nitrogen oxides and particulate matter.

ETBE also boasts low reactivity and low water solubility, which makes it easier to incorporate into blended oil.

The news comes as the European Union tightens the rules governing automotive emissions, with specific plans to issue a directive to promote the use of biofuels such as ETBE also being considered.