By on August 7, 2009

Now that the Department of Energy (DOE) has doled out some $25 billion to help automakers retool taxpayers—I mean, retrofit factories to build incrementally more fuel efficient vehicles than the ones built at the same locations previously—the agency is continuing its cash for anything environmental program. Our old friend E85 is the beneficiary of a $5.5 million handout as part of the American Recovery and Reinvestment Act. The money goes towards two noble goals sure to get the American economy on its feed—I mean feet. First up: “outreach.” Which is Fed-speak for pro-industry propaganda, presumably . . .

This topic area is aimed at increasing public awareness through national campaigns to inform the public on the benefits, safety and use requirements of higher ethanol blends up to E85. Projects that include materials as part of a dispenser display showing fuel energy content, mileage impact, costs per mile and greenhouse gas reductions are encouraged.

DOE has dedicated $2 million to this topic area and anticipates making five individual awards between $250,000 and $1 million per project. There is no cost-sharing requirements for this topic area.

Good luck spinning that lot. Second, “infrastructure.”

This topic area will fund projects that expand the infrastructure at retail fuel locations to accommodate ethanol blends up to E85. Individual projects may include modifications, upgrades or expansion of existing infrastructure at retail gas stations or the creation of new infrastructure to accommodate higher ethanol blends. Relevant infrastructure includes dispensing equipment, storage tanks and systems for tracking the amount of ethanol dispensed.

DOE has dedicated $3.5 million to this topic area and hopes to fund up to 30 individual projects with awards of $50,000 to $200,000 per project. Applicants must provide 50% cost share.

This type of subsidy isn’t doing squat for the E85 industry. Bottom line: even with a 50 percent reduction in the cost of installing the corn juice pumps, not enough people want the fuel to recoup the cash. What does that tell you?

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4 Comments on “E85 Boondoggle of the Day: $5.5 Million DOE Grants for the SOS...”


  • avatar
    no_slushbox

    The myth that there are net environmental benefits from corn ethanol has been shattered with everyone that actually cares about the environment.

    The corn ethanol industry’s best hope at gaining consumers is to give up on the environmental lies and brag about how corn ethanol helps starve poor people in foreign countries. That will be good for some sales.

  • avatar
    tedj101

    >>The corn ethanol industry’s best hope at gaining consumers is to give up on the environmental lies and brag about how corn ethanol helps starve poor people in foreign countries. That will be good for some sales.<<

    Oddly enough, you may be right that this is their best chance at selling that program…

  • avatar
    adonasetb

    In the Land of Trillion$ a paltry $5.5 million isn’t noticed.

  • avatar
    John B

    Chevrolet Malibu fuel economy, combined (4 cyl, 6 speed trans.):
    Gas 26 mpg. (9.0 litres/100 km.)
    E85 18 mpg. (13.1 litres/100 km.)

    Will E85 be cheaper to purchase? Yeah, right.

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