ORLANDO, Fla.
— If you've sort of forgotten about ethanol as an
alternative to gasoline, be assured that Tom Stephens
hasn't.
Stephens, who was in Orlando last week
to speak at the National Ethanol Conference, is vice
chairman of global product operations for General
Motors. He knows as well as anybody that our gasoline
supply won't last forever, and we're long past the point
where we should be concentrating our efforts on weaning
the U.S. from our dependence on oil.
This does not mean Stephens doesn't
appreciate horsepower. He has a collection of American
muscle cars, ranging from Chevrolet Corvettes to Pontiac
Trans-Ams to Plymouth Road Runners, and he used to be a
drag racer. So don't confuse him with ultra-green
advocates who barely tolerate the internal combustion
engine.
But, Stephens says, "We've got to
do something."
He sees the solution, as do many in
his business, as a lot of little solutions: Better
mileage for current products, plus hybrids, electric
vehicles, hydrogen fuel cells, biodiesel.
And, more immediately, ethanol. We in
Florida already have 10 percent ethanol in our gasoline,
far ahead of a state mandate that says all gasoline sold
in Florida by the end of 2010 must be E10, which means
it contains at least 10 percent ethanol. But Stephens
would like to see more emphasis on E85, which is 85
percent ethanol — which is alcohol made from a variety
of sources, but mostly corn at present — and 15
percent gasoline.
There are about 7.5 million cars and
trucks on the road in the United States that are
"flex fuel," meaning they can run on gasoline
or E85, and GM has built about 4 million of them. But
Stephens points out that 90 percent of the people who
own those vehicles don't have an E85 pump within their
ZIP code.
There are just more than 2,000 E85
pumps in the United States available to consumers, and
most of them are concentrated in the Midwest, where the
vast majority of ethanol is produced. Stephens wants
10,000 more E85 pumps, ASAP.
He makes a valid point when he says
that it costs more to make a flex-fuel vehicle, and that
GM is eating most of that price increase itself. But
unless ethanol's prospects pick up, GM will eventually
have to decide whether flex-fuel is a good investment.
That's why on Monday, Stephens toured
the Kinder-Morgan fuel storage center in Orlando because
that facility is doing something no other company in the
U.S. can. It uses a 16-inch, 115-mile pipeline that
leads from Tampa's harbor to the Orlando facility to
carry ethanol. Pipeline wisdom has long suggested that
it was impossible to send ethanol through a metal
pipeline such a long distance, and it was especially
impossible to send a batch of ethanol right before, and
after, a batch of gasoline without it all mixing up in
the line.
The latter problem, mixing, just
hasn't occurred, the Kinder-Morgan people say. And
neither has the other problem — that in the short
term, ethanol would corrode the pipeline and all the
valves and pumps involved, and in the long term, would
cause major cracks in the pipe itself.
Why isn't it? Because Houston-based
Kinder-Morgan developed a proprietary package of
additives that, for reasons known only to them, negates
the effect of the ethanol on the pipe. As for the valves
and pumps and such, the company spent millions making
them ethanol-friendly, which includes removing any
gaskets or washers that were rubber, and replacing them
with a DuPont-made substance not affected by ethanol.
What does this mean? That
Kinder-Morgan's facility in Orlando can get almost all
the ethanol it needs by pipeline from the Tampa harbor,
either from ships sailing up from the Caribbean, or
barges coming down the Mississippi River from the
Midwest. It's cheaper than trucking it in, or bringing
it in by rail.
Most of the gasoline used in the
seven-county Central Florida area comes from this
facility. Trucks from most every brand line up, waiting
on their 11-minute fill, which includes that injection
of 10 percent ethanol. If it's a truck from Shell, the
gasoline pumped into the tanker truck has a special
Shell-supplied additive poured in. If it's BP, then
there's a special BP-supplied additive. If it's
generic-brand gas, Kinder-Morgan has its own additive
package.
There is no denying that a gallon of
ethanol has less energy than a gallon of gasoline, so
vehicles that can operate on E85 or gasoline will see
perhaps 25 percent less fuel mileage on E85. Stephens
knows that, but he says that if E85 is cheap enough to
make up for the mileage, the only downside would be
filling up your tank a little more often.
Right now, both in Florida and the
U.S., E85 is about 15 percent cheaper than gasoline.
"It needs to be at least 25 percent cheaper,"
Stephens says.
I'm with Tom Stephens. If I have an
E85-capable vehicle, I'm more than happy to use it, if
for no other reason that ethanol is renewable, and oil
is not. But I'm only using it if my cost-per-mile
remains the same, meaning E85 has to be about 25 percent
cheaper than gasoline.
Sure, ethanol's part of the solution.
But a lot of work remains.