Blinding flash of the obvious


Saving the environment can't compete with saving a buck

If ethanol is more expensive, people won't buy it.

The price of E85 — a fuel that's 85% ethanol made from grain and 15% conventional gasoline — is higher than that of gasoline, even though E85 has only 72% as much energy. The U.S. Department of Energy says a vehicle has to use 1.4 times as much E85 as gasoline to go the same distance.

At some Nebraska stations, E85 was $2.19 a gallon Tuesday, while gasoline with 10% ethanol — a common substitute for unleaded regular in the Midwest — was $2.06. "This doesn't make sense," says Wayne Davis, a division manager at fuel company Bosselman, based in Grand Island, Neb. "Our customers are saying, 'I'm not going to buy E85, which is better for the environment and the economy, unless it's cheaper.' We're seeing E85 just sit."

Don't forget that the price of ethanol fuels is heavily subsidized, which means that the market price isn't a true reflection of cost. The milage is going to be a bit less per gallon with ethanol, which adds more to the cost.

— NeoWayland

Posted: Wed - February 15, 2006 at 04:26 AM  Tag


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