Article GM announced today that it's got an undisclosed stake in alternative fuels startup Coskata Inc. which aims to produce $1 per gallon ethanol by 2011. They're going to do it "principally by using five strains of bacteria to produce ethanol from materials like woodchips and trash." It could be a real "game-changer" as GM's Wagoner calls it. At $1, compared to $3 per gallon that gasoline fetches today, it might just make a lot of people opt for flex fuel vehicles. Interesting development and I'm glad that they're finally moving away from corn.
$20.00 says that $1.00 ethanol will cost over $3.00 and it won't be available by 2011. 2015 more like it.
It reminds me of a power plant built in India to use city waste as fuel. It did not work out since there are a army of people that pick out everything out of the waste dumps that could be used for personnal fuel, leaving just biological waste....which does not burn at all. Today's free waste will not be free if fuel can be derived from it. GM may be betting on the stock popularity rather than the actual technology. If that is the case I think GM is smart.
