Now that is just one example. Could you come up with some product that probably has seen a radical increase in price based on the demand for corn? We'd be foolish to deny that you could. But it would also be overdramatizing the point (which could also be termed propaganda). What we as car crafters should be concerned with is the notion that there is a fuel out there that offers the equivalent of race-gas octane for the price of pump fuel. It requires some significant changes to the car's fuel-delivery system, and most carbureted guys would benefit from building or buying an E85-specific carburetor. At this year's Car Craft Summer Nationals in St. Paul, Minnesota, we watched Jesse Nelson spin up his 540ci, twin-turbocharged, Rat-motored '70 Chevelle to 1,105 hp on the chassis dyno using E85. If car crafters can use a pump gas fuel to make this kind of horsepower, pay normal pump-gas prices, and not drive up the price of certain foodstuffs, then that's a good thing.
Now, to give the economics of E85 a balanced position, keep in mind that the price of E85 at the pump is also heavily subsidized by the government to the tune of around 50 cents per gallon. That means that without this subsidy, the price of E85 would be higher than regular gasoline. I recently spent a week in Iowa and noticed that many gas stations were selling 89-octane fuel for 8 to 10 cents a gallon cheaper than 87-octane gas. This is because the 89-octane fuel is mixed with a percentage of ethanol that increases its octane rating. The explanation for this higher-octane/cheaper-price dichotomy is that state subsidies offset the additional cost. Once the public accepts the use of fuels like E85, then those government subsidies will gradually disappear when our state legislatures see an opportunity to bring in more money for them to waste. What may alleviate that additional cost will be more efficient ways of distilling ethanol, or perhaps greater production rates of other ethanol-friendly crops that are cheaper and easier to grow.
What all the commotion is really all about is simple human nature. Some people are reacting to this new idea with emotion rather than logic (where is Mr. Spock when we need him?). It's human nature to distrust anything new. It wasn't all that long ago that people thought flying was for the birds. And when computers first began to make an impact on our society, knee-jerk reactionaries said these new machines would put people out of work. The reality is that computers have opened up a worldwide new industry that has put people to work. E85 will not solve all of our energy-use problems, and suggesting that ethanol be the primary solution to fueling all cars in America is ridiculous. But as an additional energy source that can be used in conjunction with gasoline to lessen our dependence on foreign oil, it makes a ton of sense. Even better, this fuel comes from a renewable resource.
My guess is that most of us have delivered harangues about the oil companies and their outrageous profits. So consider that if E85 achieves a significant percentage of total fuel used, the oil companies won't have to build those expensive refineries and use that as an excuse to charge us more for gasoline. Plus, competition from ethanol should be viewed as a positive step toward stabilizing fuel costs, because gasoline will no longer be the only game in town. In a free-market society, competition creates lower prices. Consumers end up the beneficiaries of this competition. Best of all, car crafters can make serious horsepower with an affordable fuel. Hopefully, this short explanation has offered an alternative viewpoint and made the bigger picture clearer. But we'd suggest doing your own research to form your own conclusions. If you see holes in our logic (here come the e-mails), let us know and we'll pass it along.