GM Takes a Stake in Ethanol Maker

[1931Chevy]

http://www.businessweek.com/lifestyl...mpaign_id=yhoo
Here's a tough sell. General Motors (GM) thinks it can make ethanol a big player in the quest to cut greenhouse gas emissions and wean America from its addiction to foreign oil.

GM is so adamant that ethanol can be a good solution that the automaker bought an undisclosed stake in Coskata, a private Warrenville (Ill.) company that claims it has developed an advanced process to make ethanol cheaply. GM announced the move Jan. 13 at the Detroit Auto Show.

GM and Coskata say that the company's highly efficient methods for making ethanol can take away many of the problems that have kept the fuel on the back burner. First, they plan to use agricultural waste and household garbage to make ethanol, which means fuel production wouldn't push food prices up. And second, Coskata claims its production will be so efficient that it won't give back all the oil savings just making the stuff.

"There is no question in my mind that making ethanol more widely available is absolutely the most effective and environmentally sound solution," GM Chairman and CEO G. Richard Wagoner Jr. said in a statement. "And it's one that can be acted on immediately."

[suckstobeyou]

so they admit now that ethanol production did drive the food prices up?

interesting!

[chakis24]

good. gm has the infrastructure to spread pumps. wouldnt they be able to put pumps at dealerships?

[suckstobeyou]

Originally Posted by chakis24

good. gm has the infrastructure to spread pumps. wouldnt they be able to put pumps at dealerships?

yeah but i wouldn't want the stealerships to make even more hard earned money, let people open up their own stations

[K-1]

Originally Posted by suckstobeyou

so they admit now that ethanol production did drive the food prices up?

interesting!

You'll note, the author of the article wrote that little tidbit. It wasn't a quote from anyone at all related to the ethanol industry. Anyone not hell-bent on destroying ethanol knows that oil prices have had a far greater effect on "driving up" food prices.

[osv_alero]

Atleast GM is trying alternatives. Who knows, this might be the next big thing. I'm sure they invested very little and in the end could net tons of bread if this little company can make it to the mainstream.

[elderon]

E85 pumps are finally starting to spread in my area. Meijers and Kroger seem to be taking the lead in mid Michigan.

[Will123w]

Kroger as well in southern Ohio

[geozinger]

Originally Posted by K-1

You'll note, the author of the article wrote that little tidbit. It wasn't a quote from anyone at all related to the ethanol industry. Anyone not hell-bent on destroying ethanol knows that oil prices have had a far greater effect on "driving up" food prices.

Thanks for pointing that out, K-1.

People bitch about GM and it's gas guzzlers, but this kind of effort to find a solution either gets ridiculed or ignored by the mainstream press. Where is the innovation in biofuels (or even diesels) from the other manufacturers? Even as much as people complain about the announcement of the Volt, I think it has started a fire under Honda and Toyota. Don't let anyone else tell you different, they're scared of GM's engineering capabilities. They wouldn't be making as much noise as they are, if they weren't afraid of GM. You don't see the head of Hyundai talking smack about Bob Lutz...

As for installing pumps at dealerships, that could be construed as a tie-in purchase and subject to anti-monopoly laws. I don't know if that would be handled by the Feds, but I think that's the reason why dealerships don't have their own gasoline pumps. But, I know for a fact that GM is behind the installation of E85 pumps in the Michigan Meijer stores.

I look at it this way, if Brazil can figure out how to run their cars on alcohol, why can't we?

[MOOSTOPHA]

Originally Posted by suckstobeyou

yeah but i wouldn't want the stealerships to make even more hard earned money, let people open up their own stations

[CaptainDan]

Originally Posted by chakis24

good. gm has the infrastructure to spread pumps. wouldnt they be able to put pumps at dealerships?

I don't know of ANY of the infrastructure for ethanol production/delivery/sales that GM has.

I also don't know of GM owning any dealerships.

However, fuel production is certainly related to GM's core business of autos which would consume it.

Ethanol does supplement, may even someday replace, gasoline as the "fuel of choice", but that too may be temporary when we shift to hydrogen or whatever else may come next.

[motorman]

since E-85 gets less MPG how is this going to help with the new CAFE of 35 MPG ????

[redTT]

Ethanol does supplement, may even someday replace, gasoline as the "fuel of choice", but that too may be temporary when we shift to hydrogen or whatever else may come next.

Hydrogen would in my opinion be cleaner but more expensive and harder to set up.

This type of ethanol production would also be clean, cheaper to implement and also another way of disposing everyday household wastes which would otherwise go into landfills (and pollute the air, land and water ).

[AMcA]

The WSJ is reporting that the Coskata ethanol process can produce ethanol for $1 a gallon.

And the process can use all kinds of trash, clippings, old tires, etc.

And you get out 7 times as much energy as you put in.

What's not to like? Cheap easy ethanol that doesn't compete with food supplies? Sign me up!

[Joevette]

are they going to use the ethanol to power the plant which produces the ethanol?