Here are my thoughts on why E85 is still relevant and will become even more relevant.

1. Energy Dependance / Petroleum Displacement: Since E85 only contains 15% petroleum product, it can be a very valuable product in the event of an oil shock resulting from war (yeah, like that could happen) or natural disaster
2. Low Option Cost: For most vehicles that FFV capable in the US & Canada, E85 capability is either a $0 option or is embedded based on model / engine choice. No cost to the consumer for providing the capability, whether they use the fuel or not.
3. Consumer Choice: As demonstrated by Bob's Metallic Pearl, the consumer can do what makes the most economic sense for them. If you buy a diesel powered vehicle, you must get diesel fuel no matter what the price of diesel fuel is. With E85, if the price allows for making up the mpg deficit, then go with E85. If not, go with E10 or whatever is offered in your locale. In Michigan, diesel prices have shot through the roof.
4. Food or Fuel debate is overstated: As has already been pointed out, the rise in fuel prices can be traced back to more than just corn used to make ethanol. Rice and other grains are also seeing significant price hikes. Some reports place the elevatio in these prices to the cost of transportation (ie - rising fuel costs). E85 is an easy target because it is made from corn product, even though in most cases it is NOT the same types of corn used as table food. The fair part of the argument is that in some cases, farmers have made the choice to plant non-food corn on acreage that previously contained food corn. This is offset by some degree to the fact that corn yields (usable tons of corn/acre planted) have been steadily rising for years, so planting less acreage does not necessarily equate to producing less food corn.
5. Transition of the Ethanol production industry: Corn (sugar cane in Brazil) is used as a feedstock for ethanol because that's what is tried and true with established production processes. With the growing population of E85 vehicles on the road, investors are now pumping money into companies that have demonstrated technology and processes for turning non-food products into ethanol. Soon ethanol will be made from switchgrass, willow, wood by-products, even old tires and rubbish. This will become the foundation of E85 product supply. GM has invested in Coskata and another company (name escapes me) that have demonstrated the technologies and the processes.

Hope that helps.

Peace,

Martin

btw - Mikesan, next time I'm in Cali, can I borrow your Shelby?

I am NOT the official voice of GM with respect to Hybrid issues

I am NOT the official voice of GM with respect to Hybrid issues

I am NOT the official voice of GM with respect to Hybrid issues