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July 30, 2008

Ethanol comes with some problems

Analysis of: In Gas-Powered World, Ethanol Stirs Complaints | www.nytimes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
William Faris
Founder, William Faris Consulting
Implications: energy independence is a wonderful thing, but it is not without some ramifications. Is it better to have lower mileage and performance in MPG and higher food prices?

Analysis: Ethanol has a number of issues that come with its main advantage of energy independence. First of all since it is a Bio-fuel, it has the effect of raising the price on food products at a time when inflation is already ugly.
Secondly it does not perform in normal gasoline engines as well. In an unscientific but often repeated study my 4 vehicles get about 10% worse MPG with Ethanol blends.
Thirdly, there are claims that it also causes harmful corrosive effects on engine internal parts. Jaguar found that on the AJ-8 original engines that had Nikosil coating on the cylinder walls, there was a dramatic effect of certain aditives.
Are the negative effcts offset by the main benefit of energy independence? The answer is, it depends. If you have to replace the engine in your $93,000 Jaguar it is clearly a poor choice. If it only lowers your MPG by 10% it may be acceptable.
In any event, the choice will probably be a strategic one done at the national level, but it may make a market for Non-ethanol products

Other Analyses of the Same Source Article:
Give Me A Break!
August 11, 2008, Author: GLG Expert Contributor
Ethanol is not a panacea and the world will need to come up with renewal sources for Energy Independence
August 5, 2008, Author: GLG Expert Contributor
Ethanol Complaints Are Only Temporary
July 31, 2008, Author: Gene Plavnik, President, Heat Technologies Inc
Drivers Starting "Mutiny" Over Ethanol as Engine Woes Mount
July 29, 2008, Author: John Schulz, Independent Analyst - Contributing Editor, Logistics Management Magazine

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