Ethanol puts on a spurt

US Congress approves target for biofuels expansion America’s powerful gasoline industry will be required to almost double the use of corn-based ethanol in vehicle fuels by 2012. The industry currently blends 2.7 billion gallons a year of ethanol into fuel mixes sold at the petrol pump. But under the terms of a deal agreed by the US Senate and House of Representatives, this figure must rise to at least five billion gallons within nine years. The measures are being included in the far-reaching new energy bill, which will also set up a tax credit for diesel fuels blended with soya beans and other agricultural products. The boost for crop-based fuel alternatives was successfully pushed by senators representing midwestern states where farmers have invested substantially in ethanol plants. The gasoline industry also gets some return for investing in eco-friendly mixed fuels. A gallon of petrol blended with ethanol currently costs 5.2 cents less in taxes than a gallon of regular fuel. - Polly Ghazi

28 January 2004

Polly Ghazi