E85 as an Alternative Fuel Source

E85 Fuel Can Combat Climate Change and Rising Cost of Fuel Prices

Jun 19, 2008 Laurence O'Sullivan

E85, which is a mixture of 85% ethanol and 15% gasoline, shows promise as being one of the better means of saving on fuel prices, reducing greenhouse gas emissions and cutting back on diminishing reserves of scarce fossil fuels. E85 can only be used in Flexi fuel vehicles (FFVs) which are designed to run on gasoline plus any amount of ethanol up to 85%. As more of these vehicles are being produced by the major auto makers E85 is likely to become much more important as an alternative fuel.

E85 is a Renewable Fuel

Ethanol makes up 85% of E85 and this ethanol is produced from corn, sugar cane or cellulose material. In temperate climate countries (North America, Europe) ethanol is produced from plants like corn and maize, while in tropical climates (South America, Asia) it is produced from sugar cane. According to John M. Urbanchuk, Director, LECG in his paper “Impact of Ethanol on World Demand and Prices”, published in May 2008, “World ethanol production reached 16.9 billion gallons in 2007 and is projected to total nearly 20.4 billion gallons this year.”

E85 is a Clean Fuel

Ethanol is an environmentally friendly fuel according to the U.S. Department of Energy, where on its AFDC website it claims “The CO2 released when ethanol is burned as a vehicle fuel is offset by the CO2 captured when crops used to make the ethanol are grown. As a result, ethanol-powered vehicles produce less net CO2 than gasoline-powered vehicles per mile traveled.” The site also claims that “Tests indicate that vehicles fueled with ethanol blends produce lower emissions of some toxic compounds—such as benzene and 1,3 butadiene—than vehicles fueled with pure gasoline.”

E85 Can Boost Energy Independence.

In a report in the Financial Times on May 16, 2008, Carola Hoyos stated “The US is starting to break its “addiction” to foreign oil as high prices, more efficient cars, and the use of ethanol significantly cut the share of its oil imports for the first time since 1977.” Brazil became energy independent in 2006, thanks largely to ethanol use as an auto fuel. In a report published in May of that year, the New York Times stated “This country (Brazil) expects to become energy self-sufficient this year, meeting its growing demand for fuel by increasing production from petroleum and ethanol. Already the use of ethanol, derived in Brazil from sugar cane, is so widespread that some gas stations have two sets of pumps, marked A for alcohol and G for gas.”

E85 Can Cut Costs

At present E85 is comparable in cost to regular gasoline, the greater use of ethanol as an alternative fuel has brought down costs. The American Coalition for Ethanol (ACE) says on its website, “Economic experts agree that without ethanol, gas prices would be even higher. Merrill Lynch analysts note that if ethanol producers weren’t expanding their output, oil and gas prices would be 15% higher, which at today’s prices would mean oil at $155 per barrel and gas at $4.45 a gallon.

Problems with E85

• The major problem is E85 availability at filling stations. In the United States, according to the Alternative Fuel and Advanced Vehicle Data Center (AFDC) as of June 2008 there are only 1474 E85 filling stations throughout the country. As oil companies run the franchises on filling stations they tend not to offer an alternative fuel but under Section 241 of the Energy Independence and Security Act of 2007 “Prohibition of Franchise Agreement Restrictions Relating to Renewable Fuel Infrastructure” they will not be able to continue this practice.

• Another problem is miles per gallon. According to the AFDC fact sheet, “E85 has about 27% less energy per gallon than gasoline. However, E85 is typically priced lower than gasoline, so that cost per mile is comparable.”

As more flexible fuel vehicles become available, as the price of gasoline rises and concerns over greenhouse gas emissions persist, E85 has the potential to become the alternative automobile fuel of the future.