The Internet home of: Subscribe to Business 2.0 | Free Trial
SYMBOL
LOOK-UP
Entire Site FORTUNE Money Business 2.0 FORTUNE Small Business Web
HOME NEWS MARKETS TECHNOLOGY JOBS & ECONOMY PERSONAL FINANCE LIFESTYLE REAL ESTATE SMALL BUSINESS LISTS
Main
Companies
Economy
World Business
Newsmakers
Fun Money
Corrections
Main
Portfolio
News
Indexes
Pre-Market
After-Hours
Bonds
Commodities
Currencies
Actives
Gainers
Losers
Earnings
Hot Stocks
Sivy on Stocks
Investor Research Center
IPOs
Main
Personal Tech
Sectors & Stocks
Fortune 500 Tech
100 Fastest-Growing Techs
The Browser Blog
Fast Forward
B2Day Blog
Game Over
Main
Economic Calendar
Fed Focus
Top 50 Best Jobs
Best Companies to Work For
100 Top MBA Employers
Ask Annie
Employment Rates
Compare Cost of Living
Find a Job
Main
Retirement
Funds
Ask the Expert
ETFs
Top Tips
Sivy on Stocks
College
Insurance
Taxes
Interest Rates
Portfolio
Money 101
Main
Autos
Real Estate
Personal Tech
Good Life
Personal Finance
Main
Best Places to Live
Home Affordability Tool
Compare Cost of Living
Latest home prices
Best Places to Retire
Money 101
Mortgage Rates
Real Estate Tips
Main
50 Small Caps That Rock
100 Fastest-Growing Techs
FSB 100
10 Cool Entrepreneur Colleges
Hot Startups
Main
Best Places to Live
Fortune 500
Global 500
Fortune 500 archive
Best Places to Retire
50 Most Powerful Women
Best Cars 2006
Best Companies to Work For
Most Admired Companies
100 Top MBA Employers
100 Fastest-Growing Companies
Top 50 Best Jobs
50 Small-Cap Stock Picks
Sivy 70: Best Stocks
MONEY 65: Best Funds
Boom Towns
100 Fastest-Growing Techs
101 Dumbest Moments
FSB 100
Putting ethanol in the fast lane
Famed venture capitalist calls for four policy changes to help put the plant-based fuel back in the spotlight.
By Steve Hargreaves, CNNMoney.com staff writer
September 22 2006: 12:44 PM EDT
NEW YORK (CNNMoney.com) -- Despite falling oil prices and a corresponding drop in the stock price of various ethanol companies, famed venture capitalist, Sun Microsystems co-founder and ethanol investor Vinod Khosla outlined four steps he said would help the country use more of the plant-derived fuel.
Speaking at a Cleantech Venture Forum conference in New York City, Khosla told a roomful of fellow venture capitalists that a couple of government mandates and a shift in the subsidy policy would go a long way in helping bring more ethanol to market.
All you need to know about energy
Where it comes from
• Top producers, consumers
• Oil and politics
• What goes into a gallon of gas
Environmental impact
• Calculate your energy use
• Top world CO2 emissions
• Climate change milestones
Alternatives
• Alternative energy sources
• Alternative motor fuels
• Green building goes big
Specifically, he called for a government mandate that 70 percent of all cars sold in the U.S. be flex-fuel - which is having the ability to run on gas, ethanol or other alcohol-based fuels - by 2014, and that 10 percent of all major-branded gas stations in the U.S. sell E85, a fuel that contains 85 percent ethanol.
The move is an attempt to allay concerns by the oil industry that there aren't enough ethanol cars to make installing E85 pumps worthwhile, and simultaneous concerns by the auto industry that people won't buy ethanol cars because there's no place to fill them up.
He also said the current government ethanol subsidy of 50 cents a gallon should be based on a sliding scale corresponding to the price of oil: 25 cents a gallon if oil is at $75 a barrel ranging up to 75 cents a gallon if oil falls to $25 a barrel.
"It indicates to Saudi Arabia, or (Venezuelan President Hugo) Chavez or whoever your favorite manipulator is that they can't manipulate the markets" and drive out alternative fuels, he said.
When asked who would pay for these mandates, Khosla indicated it would be up to to industry or the government. He said installing the gas pumps would cost something less than a billion dollars and making cars flex-fuel amounts to $35-$100 a vehicle.
"We're spending so much on energy security, spending that kind of money is a worthwhile investment," he said.
He also called for lifting tariffs on imports of ethanol from Brazil, a move strongly opposed by U.S. farmers, in exchange for increasing corn-derived ethanol in gasoline from 10 to 15 percent, a move he said was supported by some in the agriculture industry.
Most ethanol in America is currently derived from corn. Using corn-based ethanol as a fuel has been criticized for its potential to drive up food prices and its ability to provide only a fraction of the the country's total gasoline demand.
Khosla also has investments in cellulosic ethanol, a nascent but promising technology that involves making ethanol out of nearly any plant, wood or other biomass source, not just food crops.
"The president loves biomass, the farmers love biomass, even evangelicals love biomass" because it decreases the county's reliance on the Middle East, he said. "As investors we should make this happen because its good for the country."
Oil produced by such companies as BP (down $0.61 to $65.35, Charts), ConocoPhillips (down $0.39 to $57.82, Charts) and Exxon Mobil (down $0.14 to $64.64, Charts) has become the subject of debate as its cost rises, climate change becomes more visible and tensions in the Middle East and South America underscore the U.S. dependence on crude.
---------------------------------------------------------------------
Ethanol is losing support on Wall Street.
SAVE | EMAIL | PRINT | | REPRINT
More Economy
Manufacturing index shows slower growth
U.S. construction spending rises 0.3% in August
New worry: A hard 'soft landing'
The Hot List
The Aroras: Millionaires in the Making
What's next for stocks
6 best beers for this fall
Top Stories
50 Most Powerful Women
Nasdaq slumps; Dow can't top record
Biotech stocks in the dog house
U.S.: Gas prices lowest since February
Marvell flags backdated options, stock falls
Investing in Ethanol
New report: Why now is the time to invest in ethanol.
www.investmentu.net
Buy Ethanol Today and Save
Buy Ethanol or browse from many other chemicals that are hard to...
www.thechemicalshop.com
Midwest Ethanol Producers, LLC
Midwest Ethanol Producers, LLC. is a Nebraska based ethanol...
www.midwestethanol.com
DNA Purification - Ethanol
American Bioanalytical offers tested and improved alcohol for any...
www.americanbio.com
YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.
Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
Special Offer:
State/PrAAABAEAKALAPARASAZBCCACOCTDCDEFLGAHIIAIDILINKSKYLAMAMBMDMEMIMNMOMPMSMTNBNCNDNENHNJNLNMNVNSNTNUNYONOHOKORPAPEPRQCRISCSDSKTNTXUTVAVIVTWAWIWVWYYT
Privacy Policy
• Home • Portfolio • Calculators • Contact us • Newsletters • Podcasts • RSS • Mobile • Press Center • Site Map
• Advertise with Us • Magazine Customer Service • Datastore • Reprints
• Career Opportunities • Special Sections • Conferences • Business Leader Council
* : Time reflects local markets trading time. † - Intraday data is at least 15-minutes delayed. • Disclaimer
© 2006 Cable News Network LP, LLLP. A Time Warner Company ALL RIGHTS RESERVED.
• TERMS UNDER WHICH THIS SERVICE IS PROVIDED TO YOU. • PRIVACY POLICY
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM