Cellulosic ethanol, as an end fuel, is identical to ethanol and can offer up to 90% CO2 emissions reduction than gasoline. It is a key part of the company’s strategic investment and development program in sustainable biofuels, Shell said.

The cellulosic ethanol was produced at Iogen Energy’s demonstration plant in Ottawa, Canada, using non-food wheat straw and advanced conversion processes. Shell and Iogen are partners in the plant, which produced more than 500,000 litres of cellulosic ethanol last year.

Shell has been working closely together with Scuderia Ferrari since the middle of last year to develop a fuel that meets the new FIA regulations and maximises performance for the 2010 season.

Shell and Iogen Energy are working towards construction of a full-scale commercial cellulosic ethanol plant in Saskatchewan Canada. The feasibility and design assessment work of the proposed project are underway.

Lisa Lilley, technology manager of Shell for Ferrari, said: ”We are delighted that the fuel we are supplying to Scuderia Ferrari this season contains an advanced bio-component derived from Iogen cellulosic ethanol.

”This announcement clearly demonstrates our commitment to the development of sustainable, low carbon fuels. At Shell, we are accelerating the research, development and demonstration of advanced biofuels and we are committed to technical innovation through our motorsport activities.”