ALTERNATE FUELS

Over the coming years we’ll going to see a variety of alternative energy powered automobiles. It’s happening quicker than people may realize. Hybrid gasoline/electric vehicles have passed the million mark in sales, fuel cell cars will start being sold within a couple of years, bio-diesel and E85 ethanol are being marketed now, BP and Dupont are developing butanol and other companies such as BMW are working with liquid hydrogen. It’s not likely that every one of these alternatives will be a long term success and they all depend on gasoline prices remaining high to be viable.

It’s ironic that many of the same politicians who say we need to investment in alternative energy are the same ones who want congress to do something about high gas prices. Companies already in the business of marketing fuel are the ones most likely to be successful in the distribution of alternates so hopefully the politicians won’t do things that actually hinder development. In a somewhat chilling speech given a few months ago Senator Clinton indicated that if she had her way the "huge profits" made by the oil companies would be taken by the government and spent on development of alternate fuels. It’s interesting to note that the government actually collected 7 billion dollars more in taxes on oil products last year than the oil companies made in profits.

This area of the country is hoping that there is going to be a growing market for ethanol. Within 10 miles of my home two ethanol plants are being built, one will be along Route 32 between Union City and Winchester, Indiana. The other, seen here, is located at the edge of Greenville, Ohio near Route 571.

Ethanol may be great for farmers but I’m not sure it’s that wonderful for consumers. Ethanol has a lower BTU content than gasoline so your mpg will be lower. Second you pay three times for each gallon: 1. At the pump, 2. In tax money that subsidizes production, 3. In higher food prices because it drives up the price of grain. Corn prices alone have almost doubled in the past year. What will happen if the use of ethanol becomes wide spread? RMB