Ethanol Use Heats Up

Ethanol usage dramatically increased in the United States last year, from 4.9 billion gallons in 2006 to 6.5 billion in 2007, accounting for 23.7% of all corn production and driving up the price of the crop. We’ve written before about ethanol’s questionable viability as an alternative fuel, but those concerns and the impact on food prices haven’t stopped people from filling up with E85.

Due to the food crisis engulfing developing countries, ethanol has finally begun to receive the increased scrutiny it deserves. Europe, for instance, saw very little increase in its ethanol use.

And for those who think they’re saving money at the pump by using E85, check out AAA’s Fuel Gauge Report. Because ethanol burns less efficiently, a gallon of E85 will not cost you $3.19, as advertised, but rather is equivalent to $4.20 per gallon — 33 cents more than a gallon of gas — when you factor in the lower efficiency.