Thursday, December 06, 2007

E85 not cost effective in today's Flex-Fuel Vehicles

This study is not telling us anything we can't figure out on our own by looking at e85 prices and EPA fuel economy ratings for the Flex-Fuel vehicles that use E85. It's usually going to cost more to drive on E85. What this story fails to mention, however, is that a new generation of flex-fuel vehicles could get much better fuel economy by taking advantage of ethanol's high octane rating. This would make E85 quite cost competitive even without reductions in ethanol price. Let's hope the car companies start offering these new Flex-Fuel Vehicles and ethanol-capable plug-in hybrids. -- Jeffrey Goettemoeller
Ethanol E85 fuel loses cost-benefit test to diesel - "Conclusion: Unless gasoline prices, averaging $3.10 a gallon now, rise above $4 and average $3.50 or more the next few years, or ethanol prices drop a lot, diesel's the best overall solution; E85's the worst."

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