|
|
|
| Reality: Baloney.
The CAFE credits provided by the Alternative Motor
Fuel Act of 1988 have been extremely successful in
establishing the production of all forms of
alternative fuel vehicles. These incentives are
bringing more FFVs on the road, which is spurring
growth of E85 retail sites. Long term, this will
help curb petroleum imports.
Consumer Reports claim: E85 is
constrained because ethanol can’t be shipped through
existing gasoline pipelines.
Reality: Pipeline constraints have been
exaggerated, and the focus on pipeline logistics is
misplaced. Ethanol’s logistical advantage is that
corn-based plants can be built throughout the
Midwest and cellulosic-ethanol plants, when they
come, can cover most of the country. Unlike
gasoline, the fuel can be produced much closer to
where it is consumed.
Consumer Reports claim: There are only
800+ E85 locations because it costs $200,000 to
develop new E85 pumps.
Reality: $200K per pump is a wild exaggeration.
Many E85 pumps have been established by converting
existing equipment at a cost of less than $2,000.
New tanks and refueling systems have been developed
this year for less than $50,000 each. The real
barrier, which Consumer Reports article
ignored, is big oil’s practice of using franchise
agreements with some branded stations to block
biofuels availability and/or placement.
Consumer Reports claim: Ethanol’s
environmental impact is the topic of raging debate
in the scientific community.
Reality: There is strong consensus in the
scientific community that E85 ethanol is
environmentally superior to gasoline. In fact, in a
January 1999 report titled Effects of Fuel
Ethanol Use on Fuel-Cycle Energy and Greenhouse Gas
Emissions, the Center for Transportation
Research at Argonne National Laboratory concluded
that using today’s current corn to ethanol
technology, for every vehicle mile traveled the use
of E85 resulted in a 73-75% reduction in petroleum
use, a 14-19% reduction in greenhouse gas emissions,
and a 34-35% reduction in fossil energy use. That
using “NEAR FUTURE” cellulosic ethanol production,
for every vehicle mile traveled the use of E85
resulted in a 73-75% reduction in petroleum use, a
68-102% reduction in greenhouse gas emissions, and a
70-79% reduction in fossil energy use.
The bottom line is if the United States wants to
reduce its dependency on foreign sources of energy
we need to look at a variety of options. The long
term ramifications of burying our head in the sand
and continue down our same path because fuel prices
have dropped is not good economic and national
security policy. Ethanol blends such as E85 can,
will and need to play a role. Technology advances
will lead to advancements in ethanol production, a
vehicle’s optimizing E85 and fuel infrastructure |
|
Rapid Ethanol Expansion
Questioned |
|
By Seth Slabaugh
of TheStarPress.com
The proposed construction of nine ethanol plants
in East Central Indiana is happening at a time when
the rapidly growing ethanol industry might be headed
into a bust period, some experts suggest.
"I'm not against ethanol by any means, but it
can't continue to grow like this," says Christopher
Hurt, an agricultural economist at Purdue
University. "It's going to hit constraints, one of
which is the availability of corn."
Of the 18 ethanol bio-refineries either under
construction or announced in Indiana, half are in
East Central Indiana communities: Alexandria,
Bluffton (two projects), Hartford City, Marion,
Montpelier, Muncie, Portland and Winchester.
Hurt predicts that only seven to nine ethanol
plants will be built state-wide during the next
several years, not 18.
"The current expansion rate of the ethanol
industry is about 70 percent," he said in an
interview. "It's doubling every one year and five
months. That is a rate that certainly cannot be
sustained for another year."
Today, there are 107 ethanol bio-refineries in
the United States with the capacity to produce more
than 5 billion gallons of ethanol annually,
according to the Renewable Fuels Association.
Another 56 ethanol plants are under construction and
will add another 3.8 billion gallons a year of
production capacity within 18 months.
Gov. Mitch Daniels and Lt. Gov. Becky Skillman
have attended ground-breaking ceremonies recently
for ethanol plants in East Central Indiana, pointing
out that when Daniels took office in January of 2005
Indiana had only one ethanol plant.
If all 18 of Indiana's announced plants are
built, they would have the capacity to produce more
than 800 million gallons of ethanol a year and to
consume more than 600 million bushels of corn a
year, according to a state department of agriculture
fact sheet.
Indiana produced a record 929 million bushels of
corn in 2004 and is expected to produce 856 million
bushels this year.
Seventeen to 19 percent of Indiana's corn crop is
fed to the Hoosier livestock industry. That
percentage will increase if Indiana achieves the
governor's goal of doubling pork production. About
30 percent of Indiana's corn crop is processed in
the state for industrial and human products,
including corn starch and high fructose corn syrup
for the soft drink industry. The remaining 50
percent or so of Indiana's corn crop is shipped to
Southeastern states to feed poultry, swine and other
livestock, and to Japan, Mexico and other countries.
The weakest link
"This ethanol expansion is going to bid up the
price of corn to a level where it is simply not
profitable to use corn as the raw material for
ethanol, and there is no other raw material they can
use of that magnitude," Hurt said. "For ethanol to
get that corn, it has to outbid somebody else who is
already using it. Who's the weakest link?"
Will it be livestock producers? Hurt asked.
Japan? Mexico? Ethanol producers?
While high corn prices will be good for Indiana
corn growers, they'll be bad for livestock
producers, for whom feed is their most expensive
input.
"For our hog producers, our estimates there are
anything higher than $3.50 per bushel and it's just
red days at the bank, sorry, in terms of losses,"
Hurt said. "We're virtually at those levels now on
corn."
Cash corn prices in Indiana today are in the
range of $3.50 per bushel, the highest in years, due
in part to strong demand for corn from ethanol
producers.
"The corn growers will say, 'Give us a chance to
increase supply,' and they will have that
opportunity, but it's a huge challenge," Hurt said.
"We can grow the total supply of corn -- by adding
more acreage and kicking yields up -- but we can't
grow it at the rate of 70 percent."
Hurt has asked ethanol plant producers in East
Central Indiana, the East Coast, the West Coast and
Canada where they will get their corn.
"And of course, they all say Iowa," Hurt said.
"But it's not going to happen. Iowa is not going to
be a surplus corn state of any magnitude."
Boom, then bust
Hurt wouldn't be surprised to see an ethanol
industry bust.
"Good old capitalism being what it is, does
expansion always just stop at the exact moment when
you are going to have enough ethanol plants that are
in balance with the amount of corn we have?" Hurt
asked. "And the answer to that is no. We usually
boom it and then bust it. So we probably will
overbuild for what we can really handle, and it
won't be obvious until some of these plants are
halfway constructed. Most investors will finish up
and see how it goes. Then you run with excess
capacity and poor margins and bankers say it stinks,
don't talk to me about ethanol."
Other potential limits to ethanol expansion
include the rising cost of building ethanol
bio-refineries and the possibility of losing
government support, Hurt said. The ethanol industry
is heavily subsidized, from corn crops to flex-fuel
vehicles to per-gallon tax credits. The American
ethanol industry is also protected by tariffs on
imported ethanol.
But there could be attempts to remove subsidies
and import tariffs.
For example, the Renewable Fuels Association (the
trade association for the ethanol industry) says
that it joined the National Corn Growers Association
and the American Farm Bureau Federation in
successfully opposing efforts in May to remove the
import tariff on ethanol. Much attention was given
to that idea as a way to boost ethanol supplies and
lower gas prices, according to the association.
Pace of building questionable
In a report prepared last month for the
International Institute for Sustainable Development,
energy analyst Doug Koplow of Cambridge, Mass.,
questioned "the vast array of public support at all
levels of government being showered on" the ethanol
industry.
"Aside from growing public costs, there remains a
concern that productive capacity -- driven by the
subsidies -- will grow at an unsustainable rate,"
Koplow reported. "Such growth would result in a
number of potentially damaging outcomes. First, too
much industry capacity could lead to shakeouts and
bankruptcies."
In an interview, Koplow said it was a question of
price.
If gasoline prices fall or the cost of ethanol
production rises (for example, if corn prices
spike), ethanol becomes less competitive and the
industry will look for ways to avoid using ethanol,
Koplow said.
"If too much of this goes on, the plants would
lose money or eventually go out of business," he
said. "There could also be other forms of
over-shooting, like if Iowa begins trying to import
corn feedstocks for all of its new plants, yet the
states it had assumed would have surplus corn are
using them for their own ethanol production."
The pace of construction of ethanol
bio-refineries should be questioned, according to
Koplow.
"Robert Wisner of Iowa State University has
raised concerns that Iowa will need to become a net
corn importer to feed its plants," Koplow said.
"Might a similar situation arise in Indiana? Is the
state overseeing construction, or is it occurring
based on uncoordinated local decisions and
subsidies? Does the Indiana build-out take proper
consideration of the rate of construction from
surrounding states, which also need corn feedstocks?"
These and many other questions are worth asking
before all the plants are on the ground, he said.
Part of our landscape
"While the market will determine which ethanol
plants are built in Indiana, biofuels production is
now a part of our state's landscape and will be for
some time to come," responded Deb Abbott,
spokeswoman for the Indiana Department of
Agriculture (ISDA). "Biofuels are environmentally
friendly, reduce our dependence on foreign sources
of energy and support farmers and rural economies in
Indiana."
In May, ISDA released a study that looked at the
compatibility of the department's bioenergy and
livestock strategies, Abbott said.
"The study concluded there is enough corn to
support both initiatives," she said. "During the
past six years, Indiana has exported on average more
than 50 percent of the corn we produce. That corn
could stay in our state and support ethanol
production. Secondly, yields continue to increase
each year, adding to corn supply without adding
acreage. USDA (U.S. Department of Agriculture) also
has concluded that adequate corn is available to
supply both the ethanol and livestock industries."
Lenders will help prevent Indiana from
over-building, says corn grower Troy Prescott,
president of the proposed Cardinal Ethanol
bio-refinery near Winchester. Officials from First
National Bank Omaha, Cardinal Ethanol's senior
lender, flew in for Cardinal Ethanol's
ground-breaking ceremony last month.
"With 106 ethanol plants right now, there will be
some shakeouts, yes," Prescott said. "If you look at
the list of 106, a lot are 10- and 15-million-gallon
plants. The original ones are not nearly as
efficient as the large facilities like ours. The
smaller ones would go bankrupt, not us."
Cardinal Ethanol, designed to produce 100 million
gallons of ethanol a year, will have unit-train
loading capability. A unit train is one made up
completely of one commodity, such as coal, corn, or
distillers grain (a byproduct of ethanol production
used in animal feed), shipped from one place of
origin to the same destination.
"We built our plant to be as efficient as
possible," Prescott said.
Corn grower Joe Russell, who has attracted a
proposed ethanol bio-refinery to his Ag Biovision
Park north of Muncie, says farmers are excited about
the challenge of keeping up with demand.
"It would be like telling the auto industry, 'We
could use three million more cars; do you think you
can produce it?' Yes, we can. There is enthusiasm in
the farm fields of America to feed the world, help
fuel our nation and create jobs." |
2008
Model
Flexible
Fuel
Vehicles
Announced
The
following
platforms
will
be
produced
as
Flexible
Fuel
Vehicles
during
MY
2008:
Chrysler
 4.7L
Chrysler
Aspen
2.7L
Chrysler
Sebring
Convertible
&
Sedan
3.3L
Chrysler
Town
&
Country
2.7L
Dodge
Avenger
4.7L
Dodge
Dakota
4.7L
Dodge
Durango
3.3L
Dodge
Grand
Caravan
4.7L
Dodge
Ram
4.7L
Jeep
Commander
&
Grand
Cherokee
Ford
4.6L
Ford
Crown
Victoria
(including
taxi
&
police
units)
5.4L
Ford
F-150
4.6L
Mercury
Grand
Marquis
 General
Motors
3.5L
&
3.9L
Chevrolet
Impala
(including
police
units)
5.3L
Chevrolet
Avalanche
&
Silverado,
GMC
Sierra
5.3L
Chevrolet
Express
&
GMC
Savana
5.3L
Chevrolet
Suburban
&
GMC
Yukon
XL
5.3L
Chevrolet
Tahoe
&
Police
Package
Tahoe,
GMC
Yukon
3.9L
Chevrolet
Uplander
3.9L
Pontiac
Montana
(only
available
in
Canada
&
Mexico)
Nissan
5.6L
Nissan
Armada
5.6L
Nissan
Titan
Mercedes
Benz
3.0L
Mercedes
Benz
C300
Luxury
&
Sport
Excluding
the
Chrysler
Town
and
Country
Minivan
which
will
be
available
in
all
50
states,
model
year
2008
Chrysler
FFVs
will
not
be
available
for
purchase
in
California,
Connecticut,
Maine,
Massachus
Big
Oil’s
Big
Stall
on
Ethanol
Even
As
It
Pockets
Billions
In
Subsidies
It’s
Trying
to
Keep
E85
Out
of
Drivers’
Tanks
By
David
Kiley
For
some
industries,
the
prospect
of
$3.5
billion
in
federal
subsidies
now,
and
double
that
in
three
years,
might
be a
powerful
incentive.
But
not,
apparently,
for
the
oil
industry,
which
is
seeing
crude
oil
prices
soar
to
record
highs.
Despite
collecting
billions
for
blending
small
amounts
of
ethanol
with
gas,
oil
companies
seem
determined
to
fight
the
spread
of
E85,
a
fuel
that
is
85%
ethanol
and
15%
gas.
Congress
has
set
a
target
of
displacing
15%
of
projected
annual
gasoline
use
with
alternative
fuels
by
2017.
Right
now,
wider
availability
of
E85
is
the
likeliest
way
to
get
there.
At
the
same
time
the
industry
is
collecting
a 51
cents-per-gallon
federal
subsidy
for
each
gallon
of
ethanol
it
mixes
with
gas
and
sells
as
E10
(10%
ethanol
and
90%
gas),
it's
working
against
the
E85
blend
with
tactics
both
overt
and
stealthy.
Efforts
range
from
funding
studies
that
bash
the
spread
of
ethanol
for
driving
up
the
price
of
corn,
and
therefore
some
food,
to
not
supporting
E85
pumps
at
gas
stations.
The
tactics
infuriate
a
growing
chorus
of
critics,
from
the
usual
suspects—pro-ethanol
consumer
groups—to
the
unexpected:
the
oil
industry's
oft-time
ally,
the
auto
industry.
Those
who
criticize
the
industry's
stance
see
it
as
reminiscent
of
its
attempts
to
discredit
the
theory
that
human
use
of
fossil
fuels
has
caused
global
warming.
Mark
N.
Cooper,
research
director
at
the
Consumer
Federation
of
America,
authored
a
recent
paper
characterizing
the
situation
as
"Big
Oil's
war
on
ethanol."
The
industry,
he
writes,
"reacted
aggressively
against
the
expansion
of
ethanol
production,
suggesting
that
it
perceives
the
growth
of
biofuels
as
an
independent,
competitive
threat
to
its
market
power
in
refining
and
gasoline
marketing."
The
industry
collects
the
subsidies,
but
didn't
lobby
for
them—Congress
created
them
to
encourage
a
larger
ethanol
market.
While
oil
reps
say
they
aren't
anti-ethanol,
they
are
candid
about
disliking
E85.
Says
Al
Mannato
of
the
American
Petroleum
Institute
(API),
the
chief
trade
group
for
oil
and
natural-gas
companies:
"We
think
[ethanol]
makes
an
effective
additive
to
gasoline
but
that
it
doesn't
work
well
as
an
alternative
fuel.
And
we
don't
think
the
marketplace
wants
E85."
One
prong
in
the
oil
industry's
strategy
is
an
anti-ethanol
information
campaign.
In
June
the
API
released
a
study
it
commissioned
from
research
firm
Global
Insight
Inc.
The
report
concludes
that
consumers
will
be
"losers"
in
the
runup
to
Congress'
target
of
35
billion
gallons
of
biofuel
by
2017
because,
it
forecasts,
they'll
pay
$12
billion-plus
a
year
more
for
food
as
corn
prices
rise
to
meet
ethanol
demand.
The
conclusions
are
far
from
universally
accepted,
but
they
have
been
picked
up
and
promoted
by
anti-ethanol
groups
like
the
Coalition
for
Balanced
Food
&
Fuel
Policy,
made
up
of
the
major
beef,
dairy,
and
poultry
lobbies.
Global
Insight
spokesman
Jim
Dorsey
says
the
funding
didn't
influence
the
findings:
"We
don't
have
a
dog
in
this
hunt."
Academia
plays
a
role
as
well.
There
is
perhaps
no
one
more
hostile
to
ethanol
than
Tad
W.
Patzek,
a
geo-engineering
professor
at
the
University
of
California
at
Berkeley.
A
former
Shell
petroleum
engineer,
Patzek
co-founded
the
UC
Oil
Consortium,
which
studies
engineering
methods
for
getting
oil
out
of
the
ground.
It
counts
BP (BP
),
Chevron
USA,
(CVX
)
Mobil
USA,
and
Shell
(RDS
)
among
its
funders.
A
widely
cited
2005
paper
by
Patzek
and
Cornell
University
professor
David
Pimentel
concluded
that
ethanol
takes
29%
more
energy
to
produce
than
it
supplies—the
most
severe
indictment
of
the
biofuel.
Michael
Wang,
vehicle
and
fuel-systems
analyst
at
the
Energy
Dept.'s
Argonne
National
Laboratory,
says
among
several
flaws
in
the
study
is
the
use
of
old
data
and
the
overestimation
of
corn
farm
energy
use
by
34%.
Pimentel
defends
the
study.
In a
recent
update,
he
and
Patzek
hiked
the
estimate
of
ethanol's
energy
deficit
to
43%.
A
more
moderate
conclusion
comes
from
a
recent
study
by
the
University
of
California
at
Davis,
which
last
year
received
a
$25
million
grant
from
Chevron
to
study
biofuels.
It
said
the
energy
used
to
produce
ethanol
is
about
even
with
what
it
generates
and
that
cleaner
emissions
would
be
offset
by
the
loss
of
pasture
and
rainforest
to
corn-growing.
Only
a
small
part
of
the
research
backed
by
the
grant
will
involve
ethanol,
says
Billy
Sanders,
UC
Davis'
research
director.
The
primary
focus
will
be
developing
alternative
processes
and
feedstocks
for
biofuel
that
is
not
ethanol.
Infrastructure
problems
are
behind
much
of
the
oil
companies'
resistance
to
E85.
It
adds
"too
much
complexity
and
cost,"
says
Shell
spokesperson
Anne
Bryan
Peebles,
since
it
requires
separate
pumps,
trucks,
and
storage
tanks.
Any
mix
with
more
than
10%
ethanol
may
cause
corrosion
and
other
problems
in
existing
pipelines.
That
inconvenient
truth
is
one
reason
oil
companies
aren't
rushing
to
install
E85
pumps.
Of
the
179,000
pumps
at
U.S.
gas
stations,
only
about
1,000
pump
E85.
Almost
none
are
at
oil-company-owned
stations.
And
if
an
independent
station
that
operates
under,
say,
the
Exxon
(XOM
) or
Shell
brand
wants
one,
it
can
cost
around
$200,000
to
install
a
separate
pump
when
all
the
gas
suppliers'
restrictions
are
met.
Exxon
Mobil
Corp.
bars
branded
independents
from
buying
fuel
from
anyone
but
Exxon,
though
it
let
a
handful
install
E85
pumps
for
test
marketing—as
separate
machines
on
separate
islands
nowhere
near
Exxon
or
Mobil
signs.
ConocoPhillips
(COP
)
has
a
similar
policy.
But
switching
existing
tanks
and
pumps
to
E85
is
the
cheapest
way
to
offer
it,
with
more
than
50%
of
costs
often
offset
by
various
subsidies.
Mannato
says
companies
want
to
prevent
consumers
who
don't
have
flex-fuel
vehicles,
which
run
on
either
gas
or
E85,
from
gassing
up
with
E85.
Also,
they
"don't
want
their
brand
associated
with
someone
else's
product."
A
FACE-OFF
WITH
DETROIT
The
industry's
stance
angers
carmakers,
which
have
more
than
5
million
flex-fuel
vehicles
on
the
road.
General
Motors
(GM
),
Ford
(F
),
and
Chrysler
all
pledge
that
half
of
new-vehicle
sales
should
be
flex
fuel
by
2012
but
are
waiting
for
bigger
commitments
to
E85
pumps.
"Big
Oil
is
at
the
top
of
the
list
for
blocking
the
spread
of
ethanol
acceptance
by
consumers
and
the
marketplace,"
says
Loren
Beard,
senior
manager
for
energy
planning
and
policy
at
Chrysler,
referring
to
the
struggle
to
get
E85
pumps
installed.
The
API
says
its
pilot
programs
show
that
many
consumers
fill
up
once,
and
not
again,
after
they
experience
the
25%
loss
in
fuel
economy
that
comes
with
E85.
Some
states
near
ethanol
plants,
like
Indiana,
sell
E85
as
much
as
33%
cheaper
than
gas;
in
others,
like
New
York,
E85
costs
more
than
gas.
As
tension
grows
between
Big
Oil
and
its
critics,
ethanol
production
will
keep
rising.
That
may
pressure
oil
companies
to
accept
E85.
The
industry
can
absorb
almost
all
the
15
billion
gallons
projected
for
production
by
2012
in
the
form
of
E10.
After
that,
without
more
E85
pumps,
there'll
be a
lot
more
ethanol
on
the
market
than
drivers
can
find
to
put
in
their
tanks.
|
|
The video below is a
presentation on
ethanol by
billionaire Vinod
Khosla .
He does not think
ethanol is an
alternative fuel.
He thinks gasoline
should be the
alternative fuel. |
|
60 Minutes
CBS
discusses The
Ethanol
Solution:
Click Here
NBC Dateline
Discusses
The
Ethanol
Solution:
Click Here
Consumer Report’s Coverage of E85 is a Collection of Incomplete Facts – and Fictions
The October 2006 Consumer Reports (CR) cover story about E85 contained some useful facts, but it also was marred by inaccuracies, omissions, and a lack perspective. We wanted to try to set the record straight.
CR Claim: Flex fuel vehicles running on E85 get 27% less fuel economy compared to the same vehicles running on regular gasoline.
Reality: CR tested only one vehicle. A study sponsored by the Minnesota American Lung Association demonstrated fuel economy losses to be 15-17%. E85 fuel economy is an important issue. Automakers need to provide high mileage FFVs and produce vehicles like the Saab 9-5 Biopower, sold today in Europe, which is engineered to use E85’s higher octane to deliver about the same fuel economy from E85 or gas, plus 20% more horsepower.
CR Claim: According to experts, the price of ethanol (and E85) will track the price of gasoline. It won’t be significantly less expensive.
Reality: Real experience suggests otherwise. During the spring of 2005 ethanol was priced substantially lower than gasoline. With sufficient in-state ethanol production, more E85 stations and more FFVs on the road, E85 prices should trend lower and begin to behave with some independence from gas prices.
CR Claim: CAFÉ credits for FFVs increases fuel consumption and worsens oil dependency.
Reality: In the short term, this is true. But these incentives are getting more FFVs on the road, which is spurring growth of E85 retail sites. Long term, this will help curb petroleum imports.
CR Claim: E85 is constrained because ethanol can’t be shipped through existing gasoline pipelines.
Reality: Pipeline constraints have been exaggerated, and the focus on pipeline logistics is misplaced anyway. Ethanol’s logistical advantage is that corn-based plants can be built throughout the Midwest and cellulosic-ethanol plants, when they come, can cover most of the country. Unlike gasoline, the fuel can be produced much closer to where it is consumed.
Claim: There are only 800+ E85 locations because it costs $200,000 to develop new E85 pumps.
Reality: $200K per pump is a wild exaggeration. Many E85 pumps have been established by converting existing equipment at a cost of less than $2,000. New tanks and refueling systems have been developed this year in Ohio for less than $50,000 each. The real barrier, which CR’s story ignored, is big oil’s practice of using franchise agreements with some branded stations to block biofuels availability and/or placement.
Claim: Ethanol’s environmental impact is the topic of raging debate in the scientific community.
Reality: There is strong consensus in the scientific community that E85 ethanol is environmentally superior to gasoline. Corn-based ethanol is somewhat better than gas while cellulosic-based ethanol is substantially better. Studies produced by two experts cited by CR have been exposed as seriously flawed.
Claim: Ethanol on its own will never provide Americans with energy independence. It’s just one of a “portfolio of choices.”
Reality: Correct! But no advocate of ethanol has ever claimed otherwise. There is no SINGLE silver bullet to our petroleum addiction. E85, biodiesel, natural gas, hybrids, other fuel saving technologies, hydrogen someday, plus viable alternatives to auto use for daily commuting all must be vigorously pursued.
|
|
|
|
GM Joins State of California, Chevron Technology Ventures LLC, and Pacific Ethanol to Help Investigate Ethanol as Alternative, Renewable Fuel
State Endorses E85; GM offers vehicles; Chevron Technology Ventures LLC provides blending and dispensing; Pacific Ethanol provides ethanol
LOS ANGELES -- General Motors will help lead a joint demonstration project along with the state of California, Chevron Technology Ventures, and Pacific Ethanol to learn more about consumer awareness and acceptance of E85 as a motor vehicle fuel by demonstrating its use in GM’s flexible-fuel vehicles. The announcement was made as a result of a non-binding understanding made public today at the Los Angeles Auto Show.
GM intends to offer between 50 to 100 of its E85-capable Chevrolet Impala passenger cars and Silverado pickup trucks for consideration in the state’s annual competitive bid process. Flexible-fuel vehicles will be used by the California Department of Transportation (CalTrans) at various operations in Northern California and the state’s Central Valley. Chevron Technology Ventures intends to work with CalTrans to provide E85 fuel and install the necessary refueling pumps in these locations. Pacific Ethanol, a California-based ethanol production and marketing company, intends to provide the ethanol to Chevron Technology Ventures for the project.
Since California currently imports more than half of its crude oil, it has become a statewide priority to develop and grow diverse energy sources. The ethanol project is designed to explore the merits of E85 to help meet that goal, and its potential to meet and exceed California’s high standards for fuel quality and environmental emissions.
"Governor Schwarzenegger strongly supports the development of alternative fuels to improve California's air quality, reduce CO2 emissions, and achieve energy independence," said Cal/EPA Secretary Alan C. Lloyd. "This demonstration program involving E-85 fuel technology insures that California will continue to play a leading role in protecting the environment and public health.”
Although somewhat lower in energy content, ethanol delivers similar performance as regular gasoline and is a renewable, domestically-produced fuel. E85, a blend of 85 percent ethyl alcohol and 15 percent gasoline, is produced from the starch and sugar in agricultural products, primarily domestically-produced corn.
“Chevron is exploring a variety of energy sources, including ethanol,” said Greg Vesey, president, Chevron Technology Ventures. “We expect this effort will help us learn more about consumer acceptance of E85 as well as issues surrounding its production and distribution.”
For GM, this collaboration with the state of California is an important first step in helping create and grow an E85 refueling infrastructure for its E85-capable vehicles currently on the road and in showrooms, according to Elizabeth A. Lowery, GM’s vice president of environment and energy.
“We are delighted to work with California, Chevron Technology Ventures, and Pacific Ethanol on this important campaign and we commend the state of California for leading the way for our nation,” Lowery said. “GM will continue to work to promote the increased use of E85 through partnerships that demonstrate the many benefits that E85 and a diverse energy supply has for the environment, the economy and consumers.”
Pacific Ethanol is constructing a large scale ethanol facility in Madera, Calif., and has plans to build four ethanol plants in the state during the next two years, according to Bill Jones, Pacific Ethanol’s Chairman.
“Each plant will create more than 700 new jobs in California, and infuse more than $100 million in capital into the local economy,” Jones said. “E85 can help increase the amount of renewable fuel already used in California. Pacific Ethanol is pleased to be a part of the work, and looks forward to helping supply more and more ethanol for the state.”
GM has made a major commitment to E85 flexible fuel vehicles in the United States, with 1.5 million of these vehicles on the road today. GM approved the use of 10 percent ethanol blended gasoline in all GM products more than 20 years ago, and produces almost five million E10 capable vehicles annually.
For the 2006 model year, GM offers nine E85 flexible fuel vehicles, including the Chevrolet Tahoe, GMC Yukon, Chevrolet Suburban, GMC Yukon XL, Chevrolet Silverado, GMC Sierra, Chevrolet Avalanche, Chevrolet Impala, and the Chevrolet Monte Carlo. In Europe, the GM-owned Saab brand is making significant headway with the E85-fueled Saab 9-5 BioPower, which is now available to consumers in Sweden and Germany. A 310 hp concept version of the 9-5 BioPower debuted at the 2006 Los Angeles Auto Show to illustrate how Saab might extend this initiative to the United States.
GM’s E85 vehicles are capable of operating on either gasoline or 85 percent ethanol without any additional modifications, aftermarket conversions, or cumbersome switches for vehicle users. Currently, there are more than 400 public E85 fueling sites in operation across the nation.
In addition to producing E85 flexible fuel vehicles, GM has also partnered with the Governors’ Ethanol Coalition (GEC), a bipartisan group of governors devoted to the promotion and increased use of ethanol. This collaborative effort is designed to increase awareness of ethanol and flexible fuel vehicles, and to promote the increased use of E85 as a renewable, alternative transportation fuel that is able to meet the demands of today’s drivers.
More information on GM’s alternative fuel product offerings can be found at www.gmaltfuel.com.
General Motors Corp. (NYSE: GM), the world's largest vehicle manufacturer, employs about 323,000 people globally. Founded in 1908, GM has been the global automotive sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries. In 2004, GM sold nearly 9 million cars and trucks, up 4 percent and the second-highest total in the company's history. GM's global headquarters are at the GM Renaissance Center in Detroit. More information on GM, its advanced technologies and environmental initiatives can be found on the company's corporate website at www.gmability.com.
Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation, identifies, develops and commercializes emerging technologies and new energy systems. These include investments for hydrogen-related technologies, advanced energy storage technologies, renewable energy and nanotechnology. Technology Ventures is headquartered in Houston, Texas. More information about Chevron Technology Ventures can be found at www.chevron.com/technologyventures/.
The 2005 Energy Bill includes a provision that was promoted by the National Ethanol Vehicle Coalition that provides a federal income tax credit to persons that install "alternative fuel vehicle refueling property". The available credit shall not exceed 30% of the cost of the refueling property up to a maximum credit of $30,000. This provision is included in Section 1342 of the Energy Policy Act of 2005.
As is generally the case with federal legislation, the next step in the process is the promulgation of rules implementing the intent of the Congress. In the case of this new federal income tax credit, the Internal Revenue Service will be charged with issuing a notice or rules that outline the mechanisms that will be used to implement this credit. The NEVC has initiated contacts with the IRS to outline our concerns and to seek clarification of many questions.
For example, if a retailer purchases a new dispenser for the purpose of the sale of E85 and the unit is also used to dispense three other products, (noted in the industry as a 3+1 Multi Product Dispenser) what percentage of the dispenser is eligible for the tax credit? Would the tax credit in this example be limited to 25% of the total cost of the dispenser based on the fact that there are 4 products being sold through the unit? Or would the tax credit be 50% of the total cost based on the fact that there are two hoses on the unit? Could one argue that the tax credit should be available based on the cost of the entire unit?
These are just some of the questions that the NEVC has addressed to the IRS. We also collaborated with the National Biodiesel Board and they added several questions relating to dispensing B20. A copy of our letter to the IRS is available at: http://e85fuel.com/news/121305irs.htm
As more information and clarification becomes available, we will immediately make you aware as we recognize several of our members are waiting on these rules prior to setting up new E85 systems. We will encourage the IRS staff to act in a timely manner, but it would be surprising if any formal materials are released prior to April of 2006.
News From Arizona
The University of Arizona has decided to make a commitment to E85. They have begun a search for dedicated storage tanks and vehicles to fill their needs. The University currently has flex-fuel vehicles, however they are going to purchase additional flex fuels for their fleet, currently they are looking at; additional Chevy Silverado's (they already have some flex-fuel Silverado's in their fleet, they are looking to build on them), Chevy Impala's, a few Dodge Ram pick ups and possibly a few Status's.
Goodness kids, I think we are going to run out of E85 and Flex-Fuel
vehicles here in Southern Arizona if I'm not careful.
Senate group unveils oil-saving plan
By H. JOSEF HEBERT
ASSOCIATED PRESS WRITER
WASHINGTON -- Efforts to stem America's appetite for oil, nearly
two-thirds of it imported, are getting new attention in Congress
with a push from an unusual coalition of environmentalists,
evangelical Christians and conservatives.
The
diverse groups are putting pressure on lawmakers to find ways to
curtail oil use, especially in transportation, and to promote
alternative fuels and new technologies less dependent on fossil
fuels.
Environmentalists view reduced oil use as a way to curtail
pollution and lower the risk of climate change. A number of
conservatives and others argue the dependence on oil imports
poses a security threat.
Both
liberal Democrats and conservative Republicans in Congress are
listening.
A
bipartisan group of senators unveiled legislation Wednesday they
said would save 2.5 million barrels of oil a day within a decade
and 10 million barrels a day by 2031. The country now uses a
little over 20 million barrels of oil a day, most of for
transportation.
"Failure
to act, we fear, will make America like a pitiful giant, tied
down and subject to the whims of small (oil-producing)
countries," said Sen. Joe Lieberman, D-Conn., calling U.S.
dependence on foreign oil a national security risk.
The
legislation would include tax breaks, as much as 35 percent, and
loan guarantees to get automakers to switch from producing gas
guzzlers to gas-electric hybrids, advanced diesel or other
alternative technologies.
It also
includes new tax breaks for those who buy such vehicles for car
fleets, and incentives for developing alternative fuels such as
ethanol from cellulosic biomass, research into use of
lightweight material in cars, and the promotion of mass transit
corridors.
"We must
find a way to reduce our dependence on foreign oil so America is
prepared for the future," said Sen. Evan Bayh, D-Ind., one of
the bill's co-sponsors.
Among
those joining Lieberman and Bayh as co-sponsors were Sen. Ken
Salazar, D-Colo., and GOP Sens. Sam Brownback of Kansas, Lindsay
Graham of South Carolina, and Norm Coleman of Minnesota.
"This is
a bipartisan effort," Brownback said in an interview. "This is
just good common sense. This is where the public wants us to go.
They want us to not be so dependent on foreign oil."
While
lawmakers largely rejected proposals to curtail oil use in
transportation in crafting energy legislation earlier this year,
Brownback predicted political support for the new proposals.
"There was a mental sea change in America when gas hit $3 a
gallon," he said.
Earlier
this year, Democrats tried to include a provision in a broad
energy bill that later was signed into law by President Bush,
which called on the president to develop programs that would cut
oil consumption by 1 million barrels a day. It was opposed by
the GOP majority and defeated.
"That
was seen as a mandate," said Brownback, who opposed the measure.
The new approach is based on incentives to reduce oil
consumption, he said.
Among
those supporting the new Senate initiative are environmentalists
such as the Natural Resources Defense Council and the Apollo
Alliance, a coalition of labor and environmental groups.
But they
have been joined by mix of neo-conservatives and members of the
Christian right who view the country's continued dependence on
foreign oil - especially from volatile areas such as the Middle
East - as a threat to the nation's security, and in the view of
some, American values.
Among
those arguing forcefully that the country's dependence on
foreign oil poses a security risk are former CIA Director James
Woolsey and Robert McFarlane, former national security adviser
to President Reagan.
A number
of conservatives have formed a coalition called Set America Free
which advocates a diversification of motor fuels, development of
more fuel efficient cars and trucks especially hybrids, and
increased research into the development of ethanol from
cellulosic biomass.
Among
the group's members are Gary Bauer, president of American
Values; Frank Gaffney of the Center for Security Policy, and Gal
Luft, director of the Institute for the Analysis of Global
Security.
November 9, 2005
-- For immediate release
ETHANOL-FUELED SAAB 9-5 BIO-POWER HONORED WITH
POPULAR SCIENCE “BEST OF WHAT’S NEW” AWARD
The ethanol-powered Saab
9-5
2.0t
BioPower has been honored with Popular Science
magazine’s “Best of What’s New” award,
an annual ranking of
100 breakthrough products and technologies that represent a
significant leap in their categories.
The Saab 9-5 2.0t BioPower will be featured in
the December issue of Popular Science, the most widely read
issue of the year.
The vehicle also will be on display at the
Popular Science “Best of What's New” winners exhibition in Grand
Central Terminal in New York City Nov. 8-10.
“We’re pleased and honored to be named one of
Popular Sciences’ ‘Best of What’s New,’” said
Jan-Åke Jonsson, Saab Automobile managing
director.
“Near term, ethanol provides an effective first step to our
energy challenges. It’s a bridge that can lead us from fossil
fuels toward new, sustainable technologies that are still under
development.”
Saab leads
the premium vehicle segment in offering an ethanol-fueled
vehicle, an eco-friendly renewable energy source. The Saab 9-5
2.0t BioPower combines the benefits of 'going green' with sporty
performance, offering more horsepower than its gasoline
equivalent, and the ability to run on ethanol-based fuel or
gasoline in any proportion.
The vehicle is now on sale in Sweden, and
Saab USA plans to debut a 300 horsepower concept
version of the 9-5 BioPower at the upcoming Los Angeles Auto
Show and the North American International Auto Show in Detroit.
In addition, Saab eventually plans to debut BioPower models in
its 9-3 Sport Sedan, SportCombi and Convertible ranges.
Running on E85, a blend of ethanol and gasoline,
the Saab 9-5 2.0t BioPower engine delivers 180 bhp and 280 Nm of
torque, compared to 150 bhp and 240 Nm when using gasoline, a
significant 20 percent increase in maximum power and 16 percent
more torque. This gives even sportier performance. The zero to
100 kph (63 mph) dash can be accomplished in 8.5 seconds and
80-120 kph (50-75 mph) in fifth gear in 12.6 seconds, compared
to 9.8 and 14.9 seconds when running only on gasoline.
Ethanol fuel is produced commercially from
agricultural crops or forest residues. Unlike gasoline, its
consumption does not raise atmospheric levels of carbon dioxide
(CO2), the 'greenhouse' gas that contributes to global warming.
This is because emissions during driving are balanced by the
amount of CO2 that is removed from the atmosphere when crops for
conversion are grown.
“’Best of What's New’ is the ultimate Popular
Science accolade, representing a year's worth of work
evaluating thousands of products,” said Mark Jannot, editor of
Popular Science. “These awards honor innovations that not
only influence the way we live today, but that change the way we
think about the future.”
“Best of What’s New” awards are presented to 100
new products and technologies in 12 categories: Auto Tech,
Aviation & Space, Cars, Computing, Engineering, Gadgets, General
Innovation, Home Entertainment, Home Tech, Personal Health,
Photography and Recreation.
About Popular Science
Founded in 1872, Popular Science is the
world’s largest science and technology magazine; with a
circulation of 1.45 million and 6.5 million monthly readers.
Each month, Popular Science reports on the intersection
of science and everyday life, with an eye toward what’s new and
why it matters. Popular
Science
is published by Time4 Media, a subsidiary of Time
Inc., which is a wholly owned subsidiary of Time Warner Inc.
About Saab
Saab is a division of General Motors Corp. Saab
USA is the importer and distributor of Saab 9-2X, 9-3, 9-5 and
9-7X automobiles for Saab Automobile AB, Sweden. For more
information, please visit
www.saabusa.com.
http://media.saab.com
 *
Pure biodiesel (B100) is considered an alternative fuel
under EPAct. Lower-level biodiesel blends are not considered
alternative fuels, but covered fleets can earn one EPAct
credit for every 450 gallons of B100 purchased for use in
blends of 20% or higher. To learn more, visit the
EPAct
Alternative Fuels Web page. |
|
Jefferson City, MO – DaimlerChrysler Corporation, one of the four automobile manufacturers that produce flexible-fuel vehicles (FFVs), have began to offer their E85 compatible vehicles to the public. The six Dodge and Chrysler model 2006 FFVs were previously only offered to fleets.