Running On Alternative Fuels
By Neal E. Boudette, Edward Taylor and Lauren Etter
Yesterday, General Motors Corp. announced it is taking an undisclosed stake in a new cellulosic-ethanol company, Coskata Inc., based in Warrenville, Ill. Coskata, backed by billionaire investor Vinod Khosla, is one of more than a dozen U.S. companies rushing to develop efficient production of cellulosic ethanol, a fuel that can be made from many materials, including wood, orange peels and tires.
At the same time, Volkswagen AG's Audi unit, Daimler AG's Mercedes-Benz division and BMW AG all vowed to introduce an array of diesel-powered vehicles in the U.S. market this year. Their new models are powered by advanced, "clean" diesel engines that get about 15% better mileage than comparable gasoline motors and meet emissions standards of all 50 U.S. states, a critical new development.
The effort to promote ethanol and diesel reflects the pressure on car companies because of new fuel-efficiency requirements in the recently passed energy bill. The new law's Corporate Average Fuel Economy standard, also known as CAFE, calls for auto makers to produce fleets that average 35 miles per gallon by 2020, up from the current target of about 25 miles per gallon.
"We have to adhere to CAFE," Daimler Chief Executive Dieter Zetsche said in an interview. "Diesel is a means to get there." Read the full story.
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