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By Todd Neeley
DTN Staff Reporter

OMAHA (DTN) -- A study released Wednesday by the American Coalition for Ethanol found that ethanol's energy content was not a direct predictor of fuel economy in four vehicles tested.

The research could debunk many of the concerns expressed about E85 and its possible inability to keep up with regular unleaded gasoline on fuel economy.

In a press release from ACE, Brian Jennings, executive vice president of the coalition, said the results -- at the very least -- should warrant additional research.

"Initial findings indicate that we as a nation haven't begun to recognize the value of ethanol," Jennings said in the release. "This is a compelling argument for more research on the promise of higher ethanol blends in gasoline. There is strong evidence that the optimal ethanol-gasoline blend for standard, non-flex-fuel vehicles is greater than E10 and instead may be E20 or E30."

A fuel's energy content in British Thermal Units is the current standard practice for estimating fuel economy. But the ACE study said it's a method that, "because of ethanol's lower BTU value, leads to estimates of decreased fuel economy in proportion to the percentage of ethanol in the fuel blend."

The research found, however, that ethanol's BTU content does not directly reflect fuel economy.

The University of North Dakota Energy and Environmental Research Center and the Minnesota Center for Automotive Research conducted the research using four 2007 model vehicles: a Toyota Camry, a Ford Fusion and two Chevrolet Impalas -- one flex fuel and one non-flex fuel.

According to the study, researchers used the Environmental Protection Agency Highway Fuel Economy Test to examine a range of ethanol-gasoline blends from straight Tier 2 gasoline up to 85 percent ethanol.

"All of the vehicles got better mileage with ethanol blends than the ethanol's energy content would predict," the study said, "and three out of four actually traveled farther on a mid-level ethanol blend than on unleaded gasoline. The Ford Fusion operated on E45, the Toyota on E65 and the non-flex-fuel Chevy on E55. No engine fault codes were displayed until these levels were surpassed."

The study found that E20 and E30 ethanol blends outperformed unleaded gasoline in fuel economy tests for certain vehicles.

"Contrary to BTU-based estimates of fuel economy for ethanol blends," the study indicated, "three of the four vehicles tested achieved their highest fuel efficiency not on gasoline, but on an ethanol blend. Mid-level blends of ethanol E20 and E30 offered the best fuel economy in these tests."

While ethanol blends higher than E10 seem to offer better fuel efficiency, two things have prevented the use of higher blends thus far: federal regulatory hurdles and automakers that won't warranty engines to be used with blends higher than E10.

The study also comes at a time when the U.S. Environmental Protection Agency, the U.S. Department of Energy and other federal agencies are testing the effects higher ethanol blends would have on the environment, vehicles and human health. In a recent interview with DTN, Jennings said that ACE shares the same desire as the federal agencies do to study the potential effects of using higher ethanol blends.

"I wouldn't go so far as to say frustrated," he said. "We have a vested interest in ensuring that a fuel blend -- whether E10, E20, E30, etc. -- is going to be compatible with autos, that the fuel will work effectively and efficiently, that it will be safe, reliable and meet EPA emissions regulations. So, we recognize the hoops are in place for a reason.

"I think our concern is how would-be opponents might try to draw out the process and stand in the way," he continued. "After all, we would be attempting to increase our market share."

One concern the EPA has, according to the Natural Resources Defense Council, is that higher blends have the potential to increase harmful emissions that contribute to air pollution. Those pollutants include nitrogen oxides, volatile organic compounds and carbon monoxide.

However, newer model vehicles are better equipped to reduce harmful emissions, making it less likely that higher ethanol blends would contribute significantly to additional air pollution, according to the NRDC.

Federal studies are under way to examine both exhaust emissions and evaporative emissions from the fuel blend or blends the ethanol industry would want approved, according to Jennings. Scientists are looking at materials' compatibility -- immersing parts and materials in the higher ethanol blends to compare how they react versus how those same materials react to gasoline. The work also includes studying drivability and durability or how well cars operate on the higher blends, and the potential health effects and air quality.

Margot Perez-Sullivan, EPA media representative, said EPA and DOE have been looking at higher ethanol blends since the establishment of the Renewable Fuel Standard in the 2005 Energy Act.

At this time, she said, the federal government will not share results of testing that is ongoing on the current U.S. vehicle fleet.

The full study is available at the American Coalition for Ethanol's Web site, www.ethanol.org.

Todd Neeley can be reached at Todd [dot] Neeley [at] dtn [dot] com.