What Savings?
A story in the Honolulu Advertiser this morning revealed one of the major problems with ethanol.
E85 is a blend that’s 85 percent ethanol - alcohol usually made from Midwest corn - and 15 percent gasoline. . .
E85’s drawback is reduced fuel economy. For example, GM’s 2006 Chevrolet Impala sedan is rated 21 mpg in town, 31 on the highway using gasoline, but only 16 and 23 mpg on E85. Ethanol backers acknowledge that E85 must be sufficiently cheaper than gasoline to make up for the poorer mileage.
That is a 7.5 percent reduction in efficiency. So where is the savings? The price per gallon at the current rate would have to be at least 20 cents per gallon less in Hawaii to make up the difference. Does anyone really think “big oil” is going to reduce their prices by that amount simply because of the cheaper cost of ethanol? (And that cheaper cost is very much in question.)
Once again, what savings? Advertiser link here.