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(February 14, 2006) In recent weeks, President Bush and U.S. automakers have announced strategies for reducing the nation's dependence on foreign oil, and have highlighted increasing production of ethanol and ethanol-capable vehicles as one key approach. The increased use of ethanol would also increase investment and income in Midwest states and create thousands of jobs.
Ethanol is usually made from corn grown in Midwest states, but can also be made from agricultural waste and grasses. Ethanol fuel - or E85 - is a fuel composed of 15% gasoline and 85% ethanol. Vehicles that are E85-compatible, or "Flex-fuel vehicles", use special fuel systems that allow the engine to run on either plain gasoline or gasoline-ethanol mixtures of up to 85% ethanol. They are generally priced the same as regular gasoline vehicles, but have slightly lower fuel economy and significantly fewer harmful emissions. U.S automakers currently lead the industry in production and sales of ethanol-compatible vehicles, together selling over 500,000 vehicles in 2005.
From an environmental perspective, increased production and use of ethanol could have both environmental benefits and disadvantages when compared with gasoline. When used in vehicles, both corn-based ethanol (made from corn kernels) and cellulosic ethanol (made from whole plants, including agricultural wastes and grasses) produce less carbon dioxide and emit fewer harmful emission like sulfur, carbon monoxide, and particulate matter than gasoline. However, production of ethanol can lead to negative environmental impacts, such as increase land needed for crop cultivation, pollution from fertilizers and pesticides, and demand for irrigation water. These impacts could have serious ramifications on the landscape and ecosystem, and would likely be far worse for corn-based ethanol than for cellulosic ethanol. So, while ethanol can lead to energy savings and emission reductions, a cautious approach needs to be taken to make sure it is produced with limited environmental impacts.
For more information on the benefits and impacts of ethanol see:
- Natural Resources Defense Council - Move Over, Gasoline: Here Come Biofuels
- Grist Magazine - Corn at the Right Time
- Environmental Science and Technology - How green is ethanol as a renewable fuel?
Bush Administration
In his State of the Union address at the end of January, President Bush proposed a new "Advanced Energy
Initiative" that calls for increased government-funded research into high-tech batteries for hybrid vehicles,
hydrogen fuel, and ethanol from agricultural waste. Related to the plan, the President's 2007 budget increases
the Department of Energy's biomass research funding by 65%, to a total of $150 million. The President's goal
is to make ethanol competive with gasoline as a vehicle fuel within six years, and has a goal of replacing more
than 75 percent of U.S. oil imports from the Middle East by 2025.
- See White House - Advanced Energy Initiative
- See Detroit News - Bush sees green in future of Big Three
- Automotive News - Bush joins rush to ethanol fuel
General Motors
In early February, GM unveiled a new "Live Green, Go Yellow" campaign to promote ethanol awareness and use
and to showcase GM's E85 flex-fuel vehicles. GM sold 270,000 E85-capable vehicles in 2005, and plans to increase
that to 400,000 vehicles in 2006. As part of its strategy, GM has partnered with Shell Oil Products and VeraSun
Energy Corp to add 26 E85 refueling pumps to stations in the greater Chicago area. GM has also loaned E85
flex-fuel vehicles to 28 states and organizations so that they may use them to educate the public and promote
the benefits of using ethanol.
- See GM's campaign website - Live Green, Go Yellow
- See GM's Press Release - General Motors Promotes Greater E85 Consumer Awareness, Use
Ford Motor Company
Ford sold 250,000 E85 compatible vehicles in 2005 and plans to increase sales to 280,000 in 2006. To achieve
this, Ford introduced E85 versions of the Ford F-150 for the 2006 model year. Ford is also searching for new
innovative ways to use ethanol, and recently unveiled an ethanol-electic Escape Hybrid concept vehicle at the
Washington D.C. auto show in January. To help promote the use of ethanol, Ford - in partnership with VeraSun -
is working with fuel providers and state officials to develop the Midwest Ethanol Corridor. The plan includes
the addition of at least 20 new E85 outlets in Illinois and Missouri this year. The Illinois Corn Growers
Association says investment by the ethanol industry in Illinois already exceeds $1 billion, and is creating
thousands of jobs.
- Chicago Sun-Times - Ford to expand ethanol availability in Midwest
- Ford's Press Release - Ford to Create New Midwest Ethanol Corridor
- Ford's Press Release - Ford Develops World's First Ethanol-fueled Hybrid Marrying Two Gasoline-saving Technologies
DaimlerChrysler
The Chrysler Group has supported the use of alternative fuels with the production of approximately 1.5 million
ethanol-capable vehicles that are now in use. For the 2006 model year, flex-fuel versions of the Dodge Ram 1500, Dodge
Stratus and Chrysler Sebring sedans, Dodge Durango and Dodge and Chrysler minivans are available to fleet customers.
DaimlerChrysler has also been focusing on increasing production of diesel vehicles that run on biodiesel made from soy beans. At its assembly plants, Chrysler Group currently fuels diesel versions of its Jeep Liberty with B5, and will soon begin filling its Dodge Ram diesel with B5 as well. B5 is a fuel made from 5% bio-diesel and 95% regular diesel fuel. In 2007, DaimlerChrysler will begin production of a diesel version of its Jeep Grand Cherokee, which will also be fueled at the factory with B5.
- Download Fact Sheet: Clean Diesels
- Chrysler Press Release - DaimlerChrysler Expands Use of Biodiesel Fuel in Dodge Ram Pickup Trucks
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