The Current State of Corn-Based Fuel: We’re All Ears
GM has latched onto E-85, an 85% blend of corn-based ethanol with regular petroleum, as the way into consumers’ hearts. On paper, it’s perfect. In addition to swaying those who want to be green, E-85 can provide the corn-belt, all-American image that Toyota’s hybrids will never be able to – no matter how many plants they build in the US. The effectiveness of GM’s ‘Live Green Go Yellow’ ad campaign, with a website featuring wholesome people in cowboy hats against a field of corn, remains to be seen, but it’s clearly designed to appeal to Middle America. Pickup trucks are still the best-selling vehicles in the US, and many families who have been GM for generations are wary about turning in their Silverados and adopting the more expensive and more complex hybrid models.
Since Flexible Fuel Vehicles (those that can run E-85 and normal petroleum) require almost no changes from the petroleum-only models, the vehicles can be produced and repaired with little additional cost. The only additional requirements are a special ethanol fuel sensor and upgraded fuel hoses – far less of a commitment than battery packs, electric motors, and generators. In fact, many consumers actually already have FFVs and don’t even know it. Few people will take the trouble to locate their VIN and compare it to the chart to determine if they have one. GM has realized their error and is contacting current owners of FFVs and will be changing the fuel cap to yellow on new vehicles to alert customers of their option.
Knowledge of the available options is only one hurdle that E85 faces. The primary issue is availability. E-85 is scarce outside the corn belt, and availability is spotty even in agricultural states. The New York Times did a drive-through of the ‘ethanol corridor’, from Chicago to St. Louis. They were unable to procure a FFV through a rental agency, and had to resort to renting one from a GM affiliate. The fuel is cheaper than normal 87 unleaded at many stations – but often not by enough to overcome its 25% loss in mileage. Given that there are only 850 ethanol stations in the country, a FFV is a must; an ethanol-only vehicle would run a high risk of being stranded and unable to refuel.
Gas stations aren’t flocking to E-85 in part due to the additional costs. Alcohol-based fuels are more corrosive than straight petroleum and require specially modified underground gasoline tanks and pumps (the same reason that the fuel lines in the vehicle must be upgraded), often at a $100,000 cost to the gas station. Subsidies by state and local governments help with this cost, but filling station owners still feel the pinch. The oil companies won’t push the fuel because it offers much slimmer profit margins than regular unleaded.
Like hybrid vehicles, the numbers don’t add up for consumers – but there are other factors at play. In addition to an easy way to conserve dwindling and expensive foreign petroleum resources, E-85 has important implications for the Midwest’s economy. As much as 11% of corn grown today is used for ethanol fuel. Many consumers will put up with the inconvenience and reduced fuel economy to help the local farming industry, help reduce dependence on foreign oil, and keep more of their dollars in the local economy. These ‘feel-good’ incentives are powerful forces; they can make consumers overlook the bottom line economics of their purchase. Ethanol is not the magic bullet solution to oil dependency, but it is a start. The wheels are already in motion to combat the negative effects of our internal combustion culture, and even small steps such as E-85 will help ecological sensitivity stay at the forefront of buyer’s minds. And if it helps GM’s economic situation, that’s not such a bad thing either.