Fight Over Raising Ethanol Blend Limit Heats Up With Wall Street Journal Story
Detroit Free Press (MI) -- August 28, 2009 -- Struggling ethanol makers want federal regulators to allow more ethanol to be mixed into regular gasoline. The current limit is 10 percent and they're hoping for 15 percent.PAID ADVERTISEMENT
Automakers oppose that measure, and also say more studies are needed about the impact that adding more ethanol to regular gasoline might have on existing vehicles.
But on Wednesday, ethanol makers scored a point for getting their side heard in the Wall Street Journal. In a front-page story, the journal said, "Turmoil in Biofuels Threatens Green Energy Revolution."
Ethanol is the largest biofuel sector, and the article went on to explain how the ethanol industry would suffer if the government didn't ramp up its support in the face of volatile demand and prices.
The article did have some words of cautions about biofuels.
"Not all biofuels may be worth the investment," it said, "because they divert land from food crops, are expensive to produce and may be eclipsed by the electric car. One fact cited against biofuels: If the entire U.S. supply of vegetable oils and animal fats were diverted to make biodiesel, production still would amount to at most 7 percent of U.S. diesel demand."
But there was nary a word from Detroit's automakers, who estimate the cost for the flex-fuel mandate at about $140 per vehicle.
You can bet they want their side heard, though. So expect this battle to keep heating up in the months ahead.
Author: By Sarah A. Webster, Detroit Free Press
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