GM invests in cellulosic ethanol
If ethanol is to be a viable fuel substitute for any significant gasoline demand, it needs to come from sources other than corn said General Motors at a Detroit auto show press conference.
"Grain-based ethanol has its critics, to be sure. Concerns have been raised ranging from water usage and food prices, to net energy balance... virtually everyone can agree that we must find a better way to make ethanol," said GM Chairman and Chief Executive Officer Rick Wagoner in Detroit.
In his 2006 State of the Union address, President Bush came to a similar conclusion when he announced an initiative to get ethanol from switchgrass, which is a tall grass that is indigenous to North America, can be harvested, and is self-seeding.
However, GM plans to leapfrog switchgrass and invest in making ethanol from waste materials such as pulp and even used tires.
The process, developed by startup company Coskata and backed by venture capital, uses a patented bacteria-based process to break down cellulose from a wide variety of sources. Coskata claims the process can produce ethanol for less than $1 a gallon and uses significantly less water than distilling ethanol from corn, an environmental concern. The company plans to have a demonstration plant working by the end of this year.
This can't happen soon enough. Corn ethanol could make up barely half of the latest federal mandate for ethanol production by 2030. And fuel economy incentives that encourage automakers to build more vehicles capable of running on 85 percent ethanol (E85) have just been extended through 2020. For those mandates to reduce U.S. oil dependence, clearly those vehicles need a supply of ethanol on which to run.
If we're going to break away from dependence on foreign oil, technologies such as fuel cells and batteries won't be here soon enough, Wagoner concluded. So we're going to need ethanol to bridge the gap. As GM strives to supply affordable ethanol for its growing E85-compatible fleet and beyond, it may also pump new-found profits into the corporate gas tanks.
—Eric Evarts
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Posted by: ED | Jan 18, 2008 2:06:58 AM
This is a nice surprise. Gm admitting that they need to change something before a vast public outcry or steep fall of their profits. I must admit that if you asked me a year ago wether I though GM would be falling under Toyota's vast boot in the near future, my answer would have been a resounding yes. GM is one of the best companies when it comes to lying to themselves about their own faults. However, ever since GM began to admit their short coming, the company has become one of the leaders in the search for alternative fuels. Congrats GM, I hope its not the last one I give you.
Posted by: Charlie Peters | Jan 18, 2008 1:27:53 PM
Will fuel ethanol policy increase oil use and oil profit?
Some folks think so
Posted by: Charlie Peters | May 12, 2008 1:07:15 AM
Should CA Speaker Karen Bass consider a "fee" on corn fuel ethanol use?
* Lower price for food, gas, water, beer, cleaner air… and… funds for the budget from oil profit.
* Clean Air Performance Professionals
Posted by: JOHN SECHRIST | Aug 24, 2008 9:05:42 AM
IN FLORIDA, WE NOW HAVE TO HAVE 10% ETHANOL IN THE GAS. SINCE THEN MY MILLAGE DROPPED DOWN 4-5 MILES PER GALLON. TOLD THAT THIS IS NORMAL. THAT MEANS ON A 18 GALLON TANK, I LOSE 72 MILES, WHICH TAKES ANOTHER PURCHASE OF 3 GALLONS. HOW ARE WE SAVING ANYTHING WITH THAT? ALSO, ARE THE AUTO COMPANIES GOING TO PUT OUT THE RANGE OF THEIR CARS WITH GAS/ETHANOL FIGURES?