GM wants more E85 stations

The auto industry executive says the ethanol industry must work to make higher blends of ethanol more readily available as an increasing number of car buyers begin driving flex-fuel vehicles.

Mary Beth Stanek, GM’s director for Environment and Energy, comments that the company remains committed to flex-fuel technology, but also is working on the development of electric hybrid and hydrogen fuel cell technology.

Since there is only so much funding available for research and development “we need to see a corresponding of support from the (e85) industry” to make sure the fuels are available to all drivers and that the flex-fuel automobiles “are experiencing the fuel,” said Stanek, who manages GM’s partnerships with ethanol producers.

“We’re not going to work on power trains when we don’t have fuel for it, and we’re certainly going to make sure that it’s economical for consumers as well,” she told many of the renewable fuels industry leaders and media who attended a biofuels forum put on by Successful Farming magazine on Tuesday.

Making available E85, an 85 percent ethanol – 15 percent gasoline blend, should not be “as hard as people are making it,” Stanek said.

“I’m not saying it’s easy, but we can all work together to get more E85 out there,” she said. “I just don’t feel it’s insurmountable.”

While the ethanol industry frequently announces the opening of new E85 pumps, the blend really is “a classic chicken and the egg” scenario, said Matt Hartwig, a spokesman for the Renewable Fuels Association.

To make E85 a mainstream product, he said there needs to be vehicles that can burn E85, the infrastructure to make it and transport it, and the need for more technology to produce enough ethanol to supply the higher E85 demands. That includes more development and funding to cellulosic ethanol production, which breaks down any organic material from various plants, not just corn, to produce ethanol.

GM, Ford and DaimlerChrysler have said they plan to have half of annual vehicle production be E85 flexible fuel or biodiesel capable by 2012. For the Detroit based GM, that means ramping up production from 400,000 of the E85 flex-fuel vehicles each year up to 800,000.

The cost of the items that help vehicles use E85 ranges from $150 to $500. But for auto manufacturers, Stanek said the investment into the technology and research to make the autos run correctly on E85 is “quite expensive.”

“It’s not the parts in the box, it’s about the investment into the engineering expense,” she declared. “We are willing to do that, and we’re going as fast as we can.”

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A major boost of ethanol proposed by Bush

Your comments are welcome if you are for or even against the proposed Ethanol mandates made by President Bush.

During tonight’s state of the union address, President George W. Bush will make a proposal requiring automotive users to use 35 billion gallons of ethanol and other alternative fuels by 2017 in the State of the Union Address tonight, a major move that could shake up the entire U.S. agriculture and energy industry.

That is almost seven times the amount of ethanol made from corn in 2006. Most of the ethanol difference would have to come from sources of plant cellulose, inedible material, yearly grasses and wood chips.

The bid of 35 billion gallons is almost five times the amount of ethanol that refiners are required to use by 2012.

It is a "very ambitious goal, but we think it’s achievable," said Joel Kaplan, the White House’s chief of staff for policy.

He said that the White House would ask for more funding for research and development in 2008 and also expected the 2007 farm bill to provide additional funds needed to create a cellulosic ethanol industry.

"It is a big goal," said Jon Doggett, a lobbyist for the National Corn Growers Association, "but it also has some time for us to hit that."

He and a lobbyist for the Renewable Fuels Association were invited to the White House for a press briefing where officials spoke to the news media on the president’s speech.

The mandate would displace nearly 15 percent of projected yearly gasoline usage in 2017.

The government could waive the mandate if officials decide that it is necessary.

Other fuels also would also be eligible for the mandate. Fuels include methanol and butanol, other forms of alcohol based fuels, and also hydrogen and biodiesel.

Bush is also proposing to increase the standards for fuel economy to save 8.5 billion gallons of gas by 2017. That would displace about 5 percent in the projected gasoline usage.