Bush’s latest energy solution faces hurdles

With oil prices stuck at more than $60 a barrel, President Bush is touting “cellulosic ethanol” as a 21st-century panacea for the U.S.’s addiction to oil. In his State of the Union address Tuesday, Mr. Bush said energy made from “wood chips, stalks or switch grass” could be available at gas pumps in six years and could supply nearly a third of the fuel needed to keep Americans on the road.

The plan is the latest in a long line of promises from Washington to support new forms of alternative energy, going back to President Carter’s promotion of synthetic fuels. It offers some intriguing new technology and the possibility of widespread support from environmentalists, farmers and auto makers.

Like earlier promises, most of which failed, Mr. Bush’s surprise promotion of cellulosic ethanol also faces huge hurdles. For one, the budget-constrained White House is offering little money to back up its rhetoric: just $150 million next year, hardly enough to revolutionize a multibillion dollar energy market.

The fuel also faces distribution problems and a lack of properly equipped vehicles. And an unpopular gas tax might well be needed to make ethanol a competitively priced product at the pump.

Wall St. Journal