The fuel is also considered carbon-neutral, meaning no new carbon dioxide is added to the atmosphere when burning it. This is because ethanol is composed of fewer hydrocarbons than petroleum-based fuels like petrol and diesel, plus the crops planted to generate the fuel also absorb significant carbon dioxide from the air.

Despite the benefits, only particular engine types are designed to run on E85 and motorists tempted by the low cost and using it in regular vehicles could be doing damage to their cars. Most petrol vehicles, however, can be converted to use E85 with available retro-fitted kits, which cost between $500 and $700.

Critics claim E85 is worse for the environment than petrol
Critics of E85 have argued that its production results in diversion of food crops, making food more expensive in developing nations. Even when the crop used is one that generally produces a great surplus, like sugar cane, and therefore isn’t susceptible to such criticism, its growth still places a strain on the ecosystem. The use of synthetic, often petroleum-derived fertilizers makes the problem even worse, and may outweigh the environmental benefits of the low-carbon fuel.

Australia’s infant ethanol industry has realised increases in demand thanks mostly to mandates by states like NSW, which has set the minimum ethanol percentage in regular fuels at 2% - well below the capacity of the industry to produce the fuel. One of the leading Australian suppliers of ethanol, Manildra, is expanding its Nowra production facility to be able to make enough of the fuel to meet a 4% mandate, and is planning to raise its capacity to 10% of the NSW fuel supply.

Ethanol gaining traction locally, but still needs support
Now that E85 is approved for sale and available to the motoring public, the industry could see the growth it needs to survive. However, fuel stations selling E85 aren’t expected to pop up over night as there are only plans to roll out single stations in other capital cites over the coming months.
 
Saab is one of the leaders in ethanol fuel technology, the Swedish carmaker selling a range of E85 capable vehicles, or ‘flex-fuel’ vehicles, under its BioPower moniker. Here in Australia Saab sells the 9-3 BioPower. GM estimates the Saab 9-3 BioPower's emissions on E85 are 80% lower than even the most fuel-efficient diesel engines, with carbon dioxide emissions at just 40g/km. More power (18kW) and torque (35Nm) is also available when using E85 instead of petrol.

In future, once the fuel becomes more widespread, GM and Ford could eventually draw on their global resources to expand E85-capable vehicles throughout their ranges with little added cost. 

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