I was under the impression they already do.  In Washington, the
oxygenated gas was supposedly made from ethanol byproduct of the paper
pulp industry, rather than the MTBE stuff.
http://www.ethanol-gec.org/information/briefing/20a.pdf is an
interesting report from 2000 on this.

On 1/31/06, [EMAIL PROTECTED] <[EMAIL PROTECTED]> wrote:
> A potentially weird aside: If woody feedstocks are effective, I wonder if
> the paper industry could make ethanol from their pulp, and still use the
> resultant stock for paper production?
>
>
> > It's enough to drive Patzek and Pimental to drink:
> > the drink you can drive does have a positive EROEI.
> >
> >  From
> > http://news.yahoo.com/s/space/20060126/sc_space/ethanolfuelmoreadvantageousthanthought
> > ==================================================================Ethanol
> > Fuel More Advantageous Than Thought
> >
> > Bjorn Carey
> > LiveScience Staff Writer
> > LiveScience.com Thu Jan 26, 3:00 PM ET
> >
> > Producing a gallon of ethanol gas from corn requires 95 percent less
> > petroleum than producing a gallon from fossil fuels, a new study finds.
> >
> > This method might also slightly reduce the production of greenhouse
> > gases that speed up global warming, but the results on that point are
> > not certain.
> >
> > "It is better to use various inputs to grow corn and make ethanol and
> > use that in your cars than it is to use the gasoline and fossil fuels
> > directly," said Daniel Kammen of the University of California, Berkeley.
> >
> > Ethanol could be even more energy efficient and 95 percent free of
> > greenhouse gas emissions, Kammen said, if produced from woody plants
> > instead of corn.
> >
> > The study is detailed in the Jan. 27 issue of the journal Science.
> >
> > Booze it up
> >
> > Ethanol is produced by bacteria that ferment and break down carbohydrate
> > sugars, such as the starch from corn. Humans have been fine-tuning this
> > process for thousands of years, although mainly to brew alcoholic
> > beverages.
> >
> > The study refined results from several previous studies by comparing the
> > total energy that goes into making ethanol gas from corn, such as
> > harvesting and refining, and comparing it to the energy needed to
> > produce gasoline from fossil fuels. Kammen's team looked into levels of
> > greenhouse gases produced by both the production and the use of each fuel.
> >
> > They found inconsistencies and errors in the previous work, which had
> > suggested ethanol gas might not be beneficial.
> >
> > After correcting the errors—which ranged from incorrect unit conversions
> > to reliance on data from outdated methods more than a century old—the
> > researchers arrived at a very different conclusion: not only does
> > corn-based ethanol gas reduce petroleum use by 95 percent, it also
> > reduces greenhouse gas emissions about 13 percent, although that
> > decrease is within a range of uncertainty for the imprecise data involved.
> >
> > "Making ethanol from corn is a good thing if you want to offset fossil
> > fuels from overseas," Kammen told LiveScience. "On the greenhouse gas
> > side of things, it is not clear if corn, as grown today, is a good
> > thing. We just don't know yet, but it appears to be a mildly good thing."
> >
> > A woody solution?
> >
> > While corn-based ethanol is an improvement over gasoline, ethanol from
> > woody, fibrous plants would pack even more energy. Willow trees, switch
> > grass, farm waste and specially grown crops are all feasible sources.
> >
> > The main energy components of these plants are cellulose and lignin,
> > which produce more energy per unit—in the form of breaking hydrogen
> > bonds—than the starches from corn.
> >
> > "It looks to be that you can get just about twice the amount of energy
> > by going the cellulose route, and greenhouse emissions are very small,"
> > Kammen said.
> >
> > Assuming replant rates equal harvests, there is a 95 percent emission
> > reduction from producing cellulosic ethanol over gasoline production in
> > all three production phases—farming, refining, and use.
> >
> > However, the real benefits of ethanol gas are not yet fully known,
> > Kammen said, and the advantages could be even greater.
> >
> > Wheels in motion
> >
> > In the United States, some 5 million of the cars and trucks on the road
> > are "flex-fuel," meaning that they can run either on traditional
> > gasoline or E85, a mix of 85 percent ethanol and 15 percent gasoline.
> >
> > Converting an automobile to run on flex-fuel costs about $100.
> >
> > "This is actually one of the cheapest possible transitions you can
> > make," Kammen said. "It cuts the cost of fuel by half at the pump."
> >
> > However, there are very few pumps offering ethanol fuel. Despite the
> > number of flex-fuel automobiles—California boasts more flex-fuel than
> > diesel vehicles—ethanol-blended fuel accounted for only 2 percent of all
> > fuel sold in the United States in 2004.
> >
> > While it doesn't yet make sense to convert the entire economy to
> > corn-based ethanol, Kammen said, improved methods for processing corn or
> > using other ethanol-rich materials could drive such a change.
> >
> > "The people who are saying ethanol is bad are just plain wrong," Kammen
> > said.
> >
> > Brazil has converted nearly all its cars and gas pumps to run on a 96
> > percent ethanol fuel produced from sugarcane. Brazilians have already
> > seen the benefits of sugarcane fuel—not only is it cleaner burning, but
> > since it is produced within the country, it is half the price of
> > imported gasoline.
> >
> > Kammen and his colleagues have made the previous studies, as well as
> > their new model and data, available on the UC Berkeley Renewable and
> > Appropriate Energy Laboratory website: http://rael.berkeley.edu/ebamm/.
> >       Tailpipe Test: Study Finds Worst Polluters
> >       Experimental Hybrid Cars Get Up to 250 Mpg
> >       Longer Airline Flights Proposed to Combat Global Warming
> >       Dire Future if Fossil Fuel Use Not Curbed, Scientists Say
> >       Waste Not: Energy from Garbage and Sewage
> >       In a Twist, Forest Products Viewed as Green Energy
> >       'Green' Car Sets Speed Record
> >
> >
> > --
> > Darryl McMahon                  http://www.econogics.com
> > It's your planet.  If you won't look after it, who will?
> >
> >
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>
>
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