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$1 a Gallon Ethanol? It Could Happen

One of the major knocks on ethanol these days is that E85 is so expensive. Because of its BTU content, E85 doesn't offer the fuel economy of gasoline, so when it is priced higher than gasoline, consumers pay twice for the environmental benefits. But according to GM's Director of Environment, Energy and Safety Policy Mary Beth Stanek, all that could change dramatically. GM's new initiatives on ethanol produced from waste products could result in dollar-a-gallon ethanol, turning the economics strongly in favor of Flex-Fuel vehicles.
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