E-85 vs. Gasoline: Why I’m Not Sold on Making the Switch

While gasoline prices are dropping- the national average for regular unleaded is $2.44 per gallon at the time of this writing- there is no denying that pain at the pump is causing a great deal of pain in the pocketbook for many Americans. Whether you drive a super efficient, match box sized car like the Chevy Aveo or a gargantuan, gas thirsty HUMMER H2. Gasoline-electric hybrid models help improve efficiency, but testing shows the gains to be not as good as carmakers tout. Then, you have alternative fuels, like the ethanol based E85.

Carmakers are jumping on the E85 bandwagon, producing more and more models that will run on the fuel produced from corn. E85 is a blend of 85% ethanol and 15% gasoline touted as a great way to help wean America from its dependency on foreign oil and help American farmers who grow corn. Both are noble thoughts, but for me this debate boils down to a simple question- "What's in it for me?"

According to the National Ethanol Vehicle Coalition, "E85 help(s) reduce American dependence on foreign oil, but because Ethanol is produced from crops grown in the U.S., it can also help stabilize commodity prices. And because E85 is a viable, home-grown alternative to gasoline, E85 provides competition, which is good for consumers."

The competition thing sounds good but, in reality, doesn't mean much to me for one very important reason- it's not a level playing field. Why do I say that? Three reasons: Availability, price, and efficiency.

Availability

The number of fueling stations offering E85 to consumers is growing but remains extremely limited. Currently, an estimated 600-700 stations sell E85 nationwide. There are tens of thousands of gasoline stations in this country. In terms of competition, E85 is at a serious disadvantage.

Price

E85 prices vary across the country. In the upper Midwest, where corn grows abundantly and most ethanol refineries are located, drivers can find E85 priced nearly 50-cents cheaper than regular unleaded gasoline. Here in South Carolina, the price of E85 is about the same as regular unleaded gasoline. In terms of competition, I call that a draw.

Efficiency

This is something very few people talk about in terms of E85. There is a marketing blitz to promote E85 as a great alternative fuel but the information disseminated rarely mentions anything about efficiency and overall cost to the consumer.

According to data published by the federal government in its annual fuel economy guide, flexible fuel vehicles (FFV) travel fewer miles per gallon running on E85 compared to gasoline.

The 2006 Fuel Economy Guide published by the U. S. Environmental Protection Agency lists the efficiency and estimated annual costs of operating all vehicles sold in the U. S. and subject to fuel economy standards. Not a single vehicle listed as an FFV in the guide gets equal or better fuel economy running on E85 versus gasoline. Not one.

Consider these examples:

Chevrolet Impala

• E85 MPG: 16 City/23 Highway
• E85 Annual Fuel Cost: $1578
• Gas MPG: 21 City/31 Highway
• Gas Annual Fuel Cost: $1376

Ford Crown Victoria

• E85 MPG: 12 City/18 Highway
• E85 Annual Fuel Cost: $2142
• Gas MPG: 17 City/25/Highway
• Gas Annual Fuel Cost: $1650

Dodge RAM 1500 4x4

• E85 MPG: 9 City/11 Highway
• E85 Annual Fuel Cost: $3000
• Gas MPG: 12 City/15 Highway
• Gas Annual Fuel Cost: $2538

Because E85 does not produce the same amount of energy as gasoline, vehicles burn more E85 to get the same performance as burning gasoline. For the vehicles listed above, drivers would pay between $202 and $492 more for fuel each year. In terms of competition, my choice would be clear- E85 loses.

In his 2006 State of the Union Address to Congress and the American people, President George W. Bush outlined The Advanced Energy Initiative which included calling for more research in developing "cutting edge methods of producing ethanol" from corn and other materials. "Our goal is to make this new kind of ethanol practical and competitive within six years," he said.

That is a fantastic goal, but meaningless to the average consumer if automakers can't figure out a way to produce engines that are, at the very least, as efficient running on E85 as they are running on gasoline. Engines that run more efficiently on E85 would be ideal.

So, back to the question "What's in it for me?" The facts are very clear: E85 is not significantly cheaper than gasoline; E85 is not as readily available as gasoline; E85 does not burn as efficiently as gasoline; and it would cost me more to burn E85 versus gasoline each year. E85 may be the smart environmental choice, but it clearly is not the smart economic choice for the average consumer. At least, not right now when, for most people, every penny counts.

Oh, Good Evening!