Over the past four years ethanol has been making its way to our fuel distributors, being sold as E10. It is a colourless alcohol, the same as in alcoholic drinks and is manufactured from grain or sugar. The CSIRO has calculated that an E10 blend cuts overall greenhouse emissions by around 3 per cent. However it’s more costly than petrol to produce and requires special storage facilities. Testing shows that fuel consumption increases by 3-4 per cent when using an E10 blend.
10 per cent ethanol mixed with petrol should not affect the majority of vehicles on our roads. The motor industry’s website advises which cars can use E10, E5 or no ethanol at all. All vehicles manufactured before 1986 are recommended not to use ethanol.
Ethanol is currently rebated at the normal fuel excise, but the rebate will be phased out over 5 years from 2011*, by which time the industry is expected to have reduced the costs of production.
*please note: straight unleaded 91 octane petrol will now be phased out in NSW by 1 July 2012. Vehicles not able to use ethanol will then use premium 95 octane petrol.
What’s your experience with E10? Is your car cheaper to run overall and has E10 had any effect – good or not so good – on your car’s performance or reliability?