So E85 is naturally cheaper than gasoline? Without subsidies? I have seen the energy cost of producing ethanol; I don't see how that is possible. Even if it is cheaper, it's not really cheaper because it causes fuel economy nosedive. Then, everybody has to pay for it regardless of how much they drive because it causes the cost of grain and grain fed products to go up.
Even assuming you are right about the need for biofuels and that is will eventually be economically feasible, ethanol has no future other than as a high octane fuel. Yes it has great potential when mixed with direct injection, but for normal driving, butanol is the future of biofuel and pursuit of ethanol is wasting resources.
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