PROS - Low emissions, made from renewable resources, less dependent on petroleum supplies.
CONS - Currently low production volume, lower fuel economy.
Several alternative fuels that can power an internal-combustion engine are readily available, including compressed natural
gas, propane, and alcohols such as methanol and ethanol. Ethanol, or ethyl alcohol, is the most promising renewable, not-from-petroleum
gasoline substitute. It has long been used in motor fuel, usually as an oxygenate additive or blend with gasoline, because
ethanol burns cleaner than gasoline.
All new cars sold in Brazil, run on some mixture of ethanol. It is also used in South Africa and Sweden.
Most ethanol in the U.S. is made from corn and sold at service stations in the Midwest, near where it's made. The standard
ethanol fuel is called E85, which is 85 percent ethanol and 15 percent gasoline. The gasoline is needed to give the fuel enough
volatility to start the engine readily.
Ethanol contains less energy per gallon than gasoline, so E85 gets roughly 30 percent fewer miles per tankful. Factoring in
that loss, corn-based E85 sells for about $2.56 for the energy equivalent of a gallon of gasoline, making it more expensive
than gasoline at today's prices. That's after crediting a 51 cents per gallon tax break that ethanol receives.
Ethanol's lower fuel economy also results in more carbon dioxide (CO2) emissions than a similar gasoline vehicle, although
ethanol advocates say there is no net gain, because the plants used to grow crops for the fuel absorb as much CO2 as the cars
burning it emit. Other studies refute this claim.
Millions of "flex-fuel" vehicles, which can run on either E85 or gasoline, are already on the road in the U.S. A list of models
can be found on the
National Ethanol Vehicle Coalition's website. Some are only available to commercial fleets.
An incentive for automakers to produce vehicles that run on E85 is that they are credited to the automaker's Corporate Average
Fuel Economy ratings as if they operate 50% of the time on the alternative fuel and 50% of the time on conventional fuel.
A National Highway Traffic Safety Administration document details an example "for a dual-fuel model that achieves 15 miles
per gallon operating on alcohol fuel and 25 mpg on the conventional fuel, the resulting CAFE [calculation] would be…40 miles
per gallon." This effectively lowers average fuel economy requirements, allowing automakers to produce more large SUVs and
trucks, which get poor fuel economy.
While most ethanol today is made from corn, cellulose is more promising. Cellulosic ethanol can be made from corn stalks after
harvesting, limbs left from logging operations, from growing switchgrass, and even potentially from municipal trash. Sweden
is moving toward greater dependence on ethanol from wood-based cellulose. A dozen or so companies are building demonstration
plants in North America to distill ethanol from cellulose, using various chemical processes.
Since switchgrass and agricultural byproducts aren't food sources, they can replace a much larger portion of our energy needs—up
to 30 percent of transportation fuel—according to a 2003 Energy Department study.
So far, cellulosic ethanol costs about 50 percent more than corn-based ethanol—about $6.04 per gallon of gasoline equivalent.
So ethanol has a long way to go before becoming cost effective in the U.S.