Small Business Resources, Business Advice and Forms from AllBusiness.com

Put the alcohol in the cars, not the drivers.

By Peter, John
Publication: Automotive Industries
Date: Wednesday, December 1 2004

Tell me if I'm wrong, but my understanding is that the goal of this technological drive toward hybrids and fuel cells is to lessen America's (and the world's for that matter) dependence on foreign oil. Not just because we may soon run out of the stuff, with emerging nations like China joining

an ever-growing world car park, but also to wrest our nation from the grip of OPEC.

That's all well and good, but while the interest in hybrids is growing and more manufacturers will offer more models, analysts predict that by 2007, hybrids will still make up only about 2 percent of the total U.S. car park. While that helps, it doesn't amount to a mileage revolution.

And while hydrogen shows promise as the fuel of the future, it will still be many years before hydrogen-powered cars will be a significant part of the fleet.

About a year-and-a-half ago at a DaimlerChrysler advanced technology event, then Senior Vice President Engineering Technologies and Regulatory Affairs, Bernie Robertson, brought up the subject of ethanol fuel (E85).

While it may have come in response to the media bashing that DCX and the other domestics were getting for falling behind Toyota and Honda by not having a viable hybrid program, Robertson made a valid point. If people were really interested in reducing America's dependence on foreign off, they could already be doing something about it, by fueling their three million flexible-fuel vehicles (FFVs) with E85--which they weren't.

E85 is a blend of 85 percent ethanol and 15 percent petroleum. Ethanol can be made from virtually any starch feedstock, such as sugar cane, wheat or milo, but most of the fuel ethanol used in the U.S. today is produced from corn and America grows a lot of corn. A bushel of field corn will yield, among other things, 31.5 lb. of starch, which can be converted to among other things, 2.7 gallons of fuel ethanol.

Next-generation ethanol production facilities WIU include production from biomass feed-stocks. A production plant under construction in Jennings, La., will produce ethanol from rice hulls and bagasse (the dry dusty pulp that remains after juice is extracted from sugar cane). California has plans for three plants that will produce ethanol from rice straw and another company plans to build production facilities in New York and Alabama to produce ethanol from the biomass portion of municipal waste.

The benefits of E85 go beyond the fact that its made from renewable resources grown (and thrown away) right here in the U.S. E85 high oxygen content makes it burn cleaner than gasoline and it contains 80 percent less gum-forming compounds, like the olefins found in gasoline. Production and use of E85 can result in as much as a 30 percent reduction in greenhouse gases.

That three million vehicles that Robertson talked about has grown to 4 million today. Flex-fuel vehicles are available from Ford, DaimlerChrysler, GM, Isuzu, Mazda, Mercedes and Nissan, including mileage offenders like Chevrolet Suburban, Dodge Ram and Nissan Titan.

The spike in oil prices this summer has renewed an interest in E85. Many new stations are popping up all over the U.S. (228 in 26 states as of this writing), with new ones coming on line every day. These stations are selling E85 for 85 cents a gallon which more than makes up for the 5 percent reduction in fuel economy that ethanol yields. And everyone's getting involved. Legislation recently passed by the House and Senate promises to make E85 as easy to distribute as gasoline and Marathon Ashland Petroleum, the fifth largest refiner of fuel in the U.S. announced in July that it would offer E85 at 14 terminals supplying the Midwest. GM launched a program in 2003 that included a direct mail campaign that sent E85 debit cards to owners of flex-fuel GM vehicles. While future campaigns will target more flex-fuel vehicle owners, we need to promote the sale of these cars and trucks to people who don't own them. In fact, we should make every vehicle capable of running on E85. If we truly want to lessen our dependence on foreign oil, we can start right now. Just fill up our cars with E85.

John Peter is Editor-In-Chief of Automotive Industries.

In addition, make sure to read these articles:

  • ETHANOL'S BRIGHT FUTURE.
  • The 2002 Ford Explorer FFV due out late this year looks like the company's standard four-wheel drive. You can order it with options like a ......
  • Status report on the ethanol industry.
  • Editor's note: Ethanol continues to be of high interest within the ag community. Here is the latest in-depth report about it from the Doane economists....
  • Policy Journal
  • Higher Odds for an Energy Law Potential Strong Growth in Biofuels Click here to view table. In contrast to past failures by Congress to enact ......
  • Battling the 10-percent factor. (Editorial).
  • How much time do you spend doing your job? I'm not talking about the total home-to-workplace cycle time, including your commute. And I don't mean ......
  • QuStream Completes $3.0 Million Debt Refinancing.
  • TORONTO -- QuStream Corporation ("QuStream") (TSX VENTURE:QVC) is pleased to announce that it has completed a refinancing of its notes payable currently due December ......
  • Putting Faith in the Metal.
  • Lindsay Brooke It seems that everywhere you look lately, the business world is bailing out. Markets that had been superheated since at least the mid-1990s ......
  • Freedom from CAFE. (Editorial).
  • This morning I paid a measly $1.13 per gallon for a tank of 89 octane gasoline at the local Quik-Mart. During the fill-up ritual I ......
  • One-of-a-Kind Heinz.
  • The voice on the phone-mail message was unmistakable, yet it still surprised me. Heinz Prechter, chairman of ASC Inc., had left me a short recording....
  • Media Advisory: QuStream Corporation-Second Quarter 2005 Results-Teleconference.
  • TORONTO -- QuStream Corporation ("QuStream") (TSX VENTURE:QVC) will hold a teleconference to discuss its second quarter 2005 results on Tuesday, August 9, 2005 at ......
  • Daring To Be Different.
  • From a purely aesthetic viewpoint, I'm not attracted to modem "stealth" aircraft. To my eyes, the F117 Nighthawk and semi-stealth F22 Raptor, with their flat-paneled ......
  • Media Advisory: QuStream Corporation-Third Quarter 2005 Results-Teleconference.
  • TORONTO -- QuStream Corporation ("QuStream") (TSX VENTURE:QVC) will hold a teleconference to discuss its third quarter 2005 results on Tuesday, November 8, 2005 at ......
  • QuStream Corporation Reports Grant of Options.
  • TORONTO -- QuStream Corporation ("QuStream") (TSX VENTURE:QVC) announced today that, subject to receipt of all necessary regulatory approvals, it has granted 100,000 options to ......
  • QuStream Corporation Hosts Analyst Open House.
  • TORONTO -- QuStream Corporation ("QuStream") (TSX VENTURE:QVC) today announced that it is hosting an open house for interested analysts at its PESA subsidiary on ......
  • Safety training.
  • NHTSA recently released a 300-page paper that listed all of the auto safety regulations instituted over the last 40 years and how many lives were ......
  • Who Will Buy Textron?
  • As many readers know from experience, there are few things in this business more unsettling than having your company for sale. Make that having your ......