GM, Governors Working On Ethanol Infrastructure

The National Governors Association and General Motors Corp. (NYSE: GM) said they will work together to expand the nationwide infrastructure for E85 ethanol. The goal is to have a  distribution network ready when next-generation ethanol, made from a variety of non-grain sources, is available.

GM helped bring 300
E85 pumps on line in 15 states over the last three years. The automaker will assist
more states in strategically locating pumps to allow owners of
flex-fuel vehicles to choose between ordinary gasoline and E85, which
consists of 85% ethanol and 15% gasoline.

The announcement was made Sunday by Minnesota Governor Tim Pawlenty during the opening plenary session of the NGA Centennial Meeting in Philadelphia.

"As we face this current energy crisis, we must do more to Americanize our energy sources and reduce our dependence on foreign oil," Pawlenty said. "This collaboration with GM will help increase the availability of E85 around the country, providing more consumer choice and moving us toward a more secure energy future."

In addition to helping connect fuel retailers with available grants for pump installations and conversions, GM will assist in determining the best locations for pumps based on flex-fuel vehicle registrations. It will expand these efforts to as many as eight states under the NGA partnership.

"The infrastructure development for E85 needs to expand now if the
nation is to be ready for the significant growth in ethanol coming from
new sources," said Beth Lowery, GM vice president of Environment,
Energy and Safety Policy. "We need a range of alternatives to offset
growing energy demand in this country and globally."

GM has committed to making 50% of its vehicles flex-fuel capable by 2012, providing the infrastructure is progressing.

There are currently fewer than 1,700 E85 pumps in the nation out of about 170,000 gasoline stations. Many flex-fuel vehicle owners have never used E85 because they have no easy access to it.

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