A Movement For Even More Ethanol Use

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Burning Money PicThe US Environmental Protection Agency has proposed increasing the maximum amount of ethanol blended in gasoline from 10% (E10) to 15% (E15). An ethanol industry group called Growth Energy and 54 ethanol makers back this increase.  This begs a legitimate question for the rest of us.  Should anyone else back any increase in the use of ethanol?

The Clean Air Act prohibits a manufacturer of fuel or fuel additives from introducing certain fuels and additives that could damage existing cars without first seeking a waiver from the EPA. The waiver could be granted if the manufacturers can prove their additive will do no harm.

The proposed rule would not mandate E15, but would permit its manufacture and use. There is no conclusive evidence that E15 would damage a car’s engine or emissions control systems, but there is some evidence that the higher concentration of ethanol would damage small engines such as those on boats and lawn mowers.

A bigger potential problem for ethanol makers is that most car warranties are voided if more than 10% ethanol is used. Sure it would possible to offer both E10 and E15 at a single filling station, but the opportunity for pumping the wrong fuel goes way up. If the EPA approves E15, will filling stations need to create a third size of fuel filling nozzle to prevent the wrong ethanol blend from being used?

If ethanol offered more than just a boost to corn growers and ethanol manufacturers, then increasing the amoung of ethanol in a blended fuel might be worth the cost and trouble. But ethanol, particularly corn-based ethanol, adds cost to automobile fuel without significantly reducing overall CO2 emissions.

Paul Ausick
May 12, 2009

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618