Wednesday - October 24, 2007

Ethanol: What does it really cost?

 E85 or ethanol have been touted as a way to nation energy independence. Yet in the real world, E85 is strikingly less efficient than regular gasoline. Take a look at this spec sheet from Chevrolet on one of their engines designed to either use gasoline or E85:

Using E85, the Chevy Impala to which this engine belongs, gets 4 miles to the gallon less in the city and 8 less on the highway.

In other words, if both cars were fueled with 100 gallons, the E85 powered car would travel 1400 miles and the gasoline powered car would go 1800 miles.

At our local Kroger store, E85 runs 20¢ a gallon cheaper than regular gasoline. So that one hundred gallons for the gasoline engine would cost (at today's pump price of $2.70) $270. For the E85 car, those one hundred gallons cost $250.

For the E85 engine to travel the same amount of miles, 1800, as the gas powered car, it would need another 28.6 gallons. Even though it is 20¢ a gallon cheaper, you need to spend another $71.50 for E85 to travel as far as a gasoline powered Impala.

In this hypothetical example, to travel the same amount of miles, the E85 vehicle is more expensive than a car using regular gasoline by $51.50.

So by being less energy efficient, ethanol is more expensive. Then you need to consider other things. Since corn is in higher demand, food prices are increasing. Farmers aren't plowing more acres to grow corn, they simply are selling corn to refiners rather than ranchers and General Mills, and grocery stores.

Energy independence is an admirable goal, but the U.S. will not achieve it using corn as a fuel source. It just doesn't make economic sense. Some other form of biomass that produces more energy, is more efficient, and doesn't compete with our food supplies needs to be adopted. 

Author: The Machiavellian
Technorati Tags: E85 biofuels
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