E85 ethanol fuel is now available in limited locations and will soon be available nationwide in Australia. E85 will give car manufacturers the incentive to sell cars tuned for this environmentally-friendly alternative to petrol.

The move has prompted Saab to consider switching much of its range to E85-friendly models.
While cars set up to run on E85 – a blend of 85 per cent ethanol and 15 per cent petrol – have been on sale in Australia for some time, their claimed environmental benefits have not been accessible because E85 has not been available in retail outlets. In 2005, Manildra supplied a small number of independent  stations with E85 fuel, as part of a case study on E85 market conversions kits from Brazil.

But just recently, a new independent fuel retailer, United, has begun selling E85 fuel. The first location was in Rozelle in Sydney’s inner west.  Melbourne will soon follow.

 “This is only the tip of the iceberg,” says Parveen Batish, director of GM premium brands. “We think this … will stimulate other manufacturers to bring their flex-fuel vehicles to this country as well.”

E85 claims to effectively reduce emissions of the greenhouse gas carbon dioxide by using 85 per cent ethanol, a fuel created through bio-sustainable methods rather than by burning fossil fuels. Because ethanol is a renewable fuel produced from plant matter, proponents argue the CO2 emissions are offset when the plant grows.

Its higher energy rating can generate more power but uses more fuel, something offset by anticipated pump prices of around $1 per litre. Due to the physical differences in the way ethanol burns -- being a longer, cooler burn compared with petrol -- it is important that one changes their driving habits and the tuning of their vehicle to get the most out of what E85 has to offer.

Critics, however, also point out that E85 still emits plenty of carbon dioxide when burnt and that farmland is being converted from food to ethanol-friendly crops. But these claims do not match the present ethanol production realities. Both Manildra and CSR are using waste products of other processes to produce their ethanol.

The move to offer E85 fuel was prompted after discussions with Swedish car maker Saab, which has been actively marketing E85 versions of its 9-5 and, more recently, 9-3. Saab has received criticism for selling E85 available cars – at a $1000 premium – without availability of E85 fuel.

“With the launch of BioPower (E85-friendly Saabs), Saab set out to break the 'chicken and egg' cycle that prevented Australian drivers from choosing a renewable fuel alternative,” says Batish.

The move to offer E85 fuel in Australia is also likely to force more oil companies to follow suit, although United Petroleum says it is planning to increase the number of its outlets selling E85.

Saab says it did not subsidise the move to bring E85 to Australia, although it states it will promote the fuel and purchase E85 to make the move viable.

“We could look at purchasing fuel as an incentive to take on the sales problem,” says Saab spokeswoman Emily Perry. “We’d be looking to support them with as much business as we can.”

Saab also says it is considering switching its entire petrol-powered fleet to E85 capable cars.
Currently Saab’s E85-capable cars command a $1000 premium, but in the interests of taking an environmental stand and offering a point of differentiation, Saab aftersales manager Neil Whitehead says the company is considering an E85 fleet of vehicles.

“There is a chance we will [ensure all petrol-powered Saabs can run on E85],” says Whitehead. “In many respects we’ve got nothing to lose. It’s a positive move for the environment.”

Whitehead says the move, to shift to an E85-friendly range, would be easier for the lower-volume 9-5 model but that it could eventually stretch to the 9-3.

If Saab did switch to E85 models, it would still offer a range of diesel models, designed to reduce running costs and carbon dioxide emissions.