GM increases its investment in ethanol

May 6, 2008

Last week GM announced that they were investing in a second company that develops technology for ethanol production. Apparently this is an attempt by GM to hedge its bets on how to most efficiently produce non-grain based ethanol. This type of biofuel, known as cellulose, requires a complicated final process to convert the material’s sugar into alcohol, which can be burned by engines. The company that GM invested in uses a process different than that which GM has previously pursued. This alternative process requires no use of chemicals, and instead relies on heat and mechanical action to convert the material to alcohol.

It is unclear to us whether this process releases fewer greenhouse gasses during the manufacturing process, an issue which has been of great concern lately. While it is encouraging to see GM invest in a technology that is forward thinking, it is unclear whether this process will ultimately help the environment, or if it is instead, an attempt to fulfill the mandates of the federal government on biofuel usage. [Note, this link is to an organization that “speaks for the petrochemical and refining industries on issues important to their business.”]

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