Beware of the ethanol hype

Ethanol appears to be the new and exciting source of renewable energy, drawing considerable investor interest, as reflected by recent initial public stock offerings such as VeraSun Energy and Pacific Ethanol. The use of ethanol is also politically expedient, as it is perceived to be an alternative to Middle Eastern oil.

Ethanol also benefits from growing concerns over the long-term supply of oil. And in the US, ethanol’s environmentally friendly role is growing because of legislation mandating a phasing-out of other fuel sources with the toxic ingredient methyl tertiary-butyl ether (MTBE) in favor of ethanol.

Yet there remain big questions about the projected long-term

viability of ethanol as the major oil-replacement fuel stock.
Asia Times