Researchers of the oil giant Shell said that they discovered a new generation of biofuels which are based on the hydration of y-valerolactone (GVL). This is a substance that’s intermediately created by the 
hydrogenation of levulinic acid, a derivative of lignocellulosic feedstock’s simple acid hydrolysis. Depending on the reactants used in the process, possibly good fuel properties may then be mixed with gasoline or diesel.
The paper based on the work of John Paul Lange and his co-researchers at Shell Amsterdam, Cheshire and Hamburg was published in on online journal called Angewandte Chemie International Edition last May 5, 2010. According to the study, when gasoline is blended with 10% and 20% of EV (ethanol valerate), it complies with the European gasoline requirements. Further, EV blended fuel increases the octane number without deteriorating properties.
These properties include gum formation and corrosion. Apparently, blending with EV can increase gasoline’s density and oxygen content, reducing its volatility and lowering its sulfur and olefins content. The non-compliant deviations of the blends volatility can easily be fixed by a minor reformulation of base gasolines. Authors also note that this is also being done for current ethanol fuel blending.
In lay speak, modern vehicles can use the valerate biofuel without having to modify their engines. This also means that pre-existing fuel stations can be used for the fuels distribution according to my friends over at the Alternative Car Fuels Blog.
To date, the biofuels already passed a number of tests. In one of the road tests, several current vehicles were used, and after driving for 250,000 km, vehicles with 15% EV on them didn’t show any negative effects on the engine, tank, or fuel lines.