Chrysler commits to ethanol

The magnitude of Chrysler's commitment to ethanol can be gauged from the fact that it plans to sell 250,000 flex-fuel vehicles next year, and half a million by 2008. Flex-fuel vehicles can run either on petrol or a petrol-ethanol mix known as E85 (so named because it comprises 85 per cent ethanol).

Most new vehicles sold in Australia are compatible with a 10 per cent ethanol blend known as E10. You can find out if your vehicle can safely run on E10 by visiting the Federal Chamber of Automotive Industries website.

What's the advantage of blending petrol with ethanol? It's simple, really. As ethanol is made from renewable resources -- such as wheat and sugar cane -- it can reduce the amount of greenhouse gases emitted from vehicles, as well as reducing the dependence on petrol. That said, experts say there's unlikely to be any significant environmental benefits from the meagre 10 per cent blend offered locally.

Getting back to Chrysler, it plans to offer flex-fuel versions of its Jeep Grand Cherokee, seven-seat Commander and Dodge Dakota pick-up truck.

The new flex-fuel models will also be sold through dealer showrooms in the US, but we won't see them here in the foreseeable future as there's no refuelling infrastructure in place locally for E85.

In fact, even in the US there's a dearth of petrol stations that supply ethanol blended fuel. Chrysler boss Tom LaSorda has pointed out that in the car-maker's home state of Michigan there are only six ethanol pumps.

LaSorda, who was scheduled to speak to a Renewable Fuels Association meeting also attended by President Bush, said Chrysler's production pledge would help reduce the US reliance on imported oil.

"Imagine if all those vehicles were operated on E85 instead of gasoline," LaSorda said in a prepared statement released by Chrysler. "It would save 4.5 billion gallons of petroleum per year -- roughly one third the amount of oil we import from Iraq each year."