The Auto Writer

Few States Can Truly Offer An Ethanol Option

Ethanol fuel, most commonly known and sold as E85 fuel — an 85/15 blend of ethanol and gasoline — has been getting a lot of free press lately. With gas prices pushing ever higher, drivers have been looking for ways to save money every time that they fill up, by considering other fueling choices including ethanol.

Unfortunately, ethanol’s positive press doesn’t match reality.

To wit, ethanol is widely unavailable, not cheap enough, and certainly not as fuel efficient as straight gasoline. Moreover, if you don’t own a flex fuel vehicle (FFV) you can’t fill up with ethanol, though there are millions of cars owned by Americans which can run on E85. However, must drivers do not and for the following reasons:

Ethanol Is Widely Unavailable — Even if you own an FFV vehicle, chances are you won’t be able to find a pump nearby unless you live in corn growing states particularly Minnesota, Wisconsin, Indiana, and Illinois which each boast more than one hundred facilities that pump ethanol. New Jersey, Hawaii, Alaska, Vermont, Rhode Island, and Maine have yet to see their first pumps while many other states have fewer than ten locations available. In some states where ethanol is being sold, access is limited to government vehicles. Visit the U.S. Department of Energy’s Alternative Fuels and Advanced Vehicles Data Center web page to find locations near you.

Ethanol Isn’t Cheap Enough — Drive by most any E85 station and you’ll notice prices that are lower than regular gasoline. Sometimes much lower. However, given that E85 is as much as 30% less fuel efficient than straight gasoline, the price differential must match that percentage in order to make ethanol financially realistic for most drivers. Inasmuch as many people are concerned about the environment (ethanol reduces noxious emissions, etc.), few motorists will take the bite unless the price is low enough. One advantage ethanol does offer is in performance.

Ethanol’s Source Is Too Limited — Almost all ethanol produced today is derived from corn, a grain used for livestock as well as grown for human consumption. Corn prices have hit record levels thanks to increased demand and the floods which ravaged many corn growing regions earlier this year. Clearly, different sources need to be used including switchgrass as well as cellulosic ethanol which can be made from a variety or recyclable materials except for glass and metal. Coskata is one company currently developing cellulosic ethanol, but their main plant is still being built. Likely, a public-private partnership will need to be developed in order to spread ethanol’s influence, something the next administration is certain to explore.

Make Flex Fuel Cars Mandatory?

Some members of Congress have it in their minds to require that all vehicles sold in the US be FFV. Reasoning that making cars FFV only adds $100 to production costs, these politicians want ethanol’s availability to spread as only 1% of all service stations in the country currently pump ethanol.

Recognizing that the lack of efficiency is hurting ethanol, some producers are now offering various blends of the fuel including a 50-50 mixture of gas and ethanol. Customers pay less money for their fuel, but see an efficiency increase compared to E85. Still, unless the price differential beats the loss of efficiency, even those other blends won’t succeed.

Lastly, expect the next presidential administration to take up energy as the centerpiece of a comprehensive federal strategy to reduce America’s dependence on foreign fuel. A battle is certain to be fought especially when other methods of producing energy are bundled with that package including wind, nuclear, coal, natural gas, solar, and various biofuel options.