Autopia - EPA Change Affects Ethanol Demand

Weblog: Autopia
Source: EPA Change Affects Ethanol Demand
Link: http://wiredblogs.tripod.com/cars/index.blog?entry_id=1415248


The Environmental Protection Agency will no longer require that reformulated gasoline contain oxygenates, which could lessen the demand for ethanol in some areas. For more than a decade, reformulated fuel has been required to contain 2% oxygen so that it would burn cleaner. The chemical methyl tertiary butyl ether (MTBE) or ethanol were the two most common options, but MTBE was found to be contaminating groundwater. States that didn't produce ethanol had to import the corn-based fuel, which made their gasoline more expensive. The EPA says that superior options for producing cleaner burning gas now obviate the need for MTBE or ethanol.However, since Congress passed a law last year requiring the increased consumption of biofuels ethanol and biodiesel, ethanol use will increase in states where corn in plentiful and decrease where it is not. One place where ethanol will be more widely used is at the racetrack. The IndyCar Series announced it would switch to 100 percent fuel-grade ethanol starting in 2007. This should put to rest and questions about ethanol's performance characteristics.