Different fuels key to future

One surefire way to cut fuel costs is to find a substitute for gasoline.

President Bush signed legislation this year mandating that ethanol comprise 21 billion gallons


Today, two-thirds of gasoline sold in the USA contains about 10% ethanol, saving consumers about 10 cents per gallon of gasoline, says Matt Hartwig of the Renewable Fuels Association. The higher mandate by 2015 could boost the per-gallon savings to 20 cents, he says.

By 2012, U.S. automakers plan to roll out large numbers of flexible-fuel vehicles that can handle blends with up to 85% ethanol. Yet at such high levels, corn-based ethanol costs 30 cents a gallon more than regular unleaded gas because of its lower mileage, AAA says.

The answer: cheaper cellulosic ethanol, now being developed, made from switch grass, wood chips and municipal solid waste. Such ethanol, if widely used, could bring back $2-per-gallon gasoline, says David Friedman of the Union of Concerned Scientists.

USA Today