2009-12-04

U.S. Ethanol on Track to Winning Allowance for Higher Blend Rates. Reuters, December 2, 2009. "The U.S. ethanol industry, darling of the powerful U.S. farm lobby, is on track to win approval for higher allowable blend rates that could eventually help it sell billions of gallons more of the fuel a year. The U.S. government has hinted it may approve higher ethanol blends in gasoline as soon as mid next year, despite howls from the auto industry that a higher ethanol blend might ruin car engines and concerns from some anti-hunger activists who say making fuel from food is folly. EPA said on Tuesday that cars built since 2001 will 'likely' be able to burn fuel blends of up to 15% ethanol. The current allowed level of ethanol in regular gasoline for all cars is 10%. EPA said if government tests on burning high blends in cars 'remain supportive' it could approve by the middle of 2010 a requirement for gasoline containing 15% ethanol -- known in the industry as E15 -- for cars built since 2001. 'It sounds like an implicit promise to go to E15,' said analyst Mark McMinimy, at the consulting firm Washington Research Group."

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