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GM, Governors to Push for More Biofuel Stations

July 14, 2008

WASHINGTON, D.C. --- General Motors Corp. and the National Governors Association have agreed to work together the next few years to ensure the addition of ethanol fuel stations across the U.S. and to help bolster demand for new biofuels made from sources other than corn, the Detroit Free Press reported.

Minnesota Gov. Tim Pawlenty announced the agreement on Sunday, July 13, but no target dates for the new stations were given. General Motors said the goal was to accelerate the pace at which new E85 pumps will be added, the newspaper reported. Today, there are about 170,000 filling stations in the U.S. Of those, about 1,700 can supply E85. Most of those stations are concentrated in the Midwest.

Though E85 prices are still lower than gasoline prices, vehicles burning ethanol typically see a 30 percent or so decrease in mileage. According to the Detroit Free Press, the price difference isn't enough to compensate for the drop in mileage. The fuel hasn't yet gained widespread use.

Last year's energy bill set a national use target of 36 billion gallons of renewable fuels a year by 2022. However, several lobbying groups are pushing for Congress to ease the biofuel mandate, arguing that it is pushing up food prices.


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