Alternative Fuels Coming
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online.wsj.com
The WSJ Online reports: Domestic companies are ahead in production of "flexible fuel" vehicles that can run on E85, a fuel that is 85% ethanol and 15% gasoline. GM, Ford and Chrysler have produced five million of these cars, which provide the companies with special credits needed to meet federal fuel-economy standards. Because E85 is available at only about 600 of 170,000 U.S. gas stations, few of these vehicles ever run on anything but gasoline. Another problem: Because of water condensation in the pipelines that transport much of the nation's oil and gasoline, ethanol must be shipped by truck or train.
In their Capitol Hill sessions, the auto companies said that for ethanol to make a real impact on cutting U.S. oil
consumption, flexible fuels must be available at 20% to 30% of the nation's gas stations. Better availability of ethanol
could also help car sales, as domestic auto makers would have a product available for customers concerned about rising
gasoline prices. In the past, ethanol has been more expensive than gas, but that equation is changing as gas prices climb.
The trio also endorsed the goal pushed by the Energy Future Coalition -- which includes farmers, environmental groups and
others -- for the U.S. to produce 25% of its energy through renewable fuels by 2025.
pcyhuang
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