MC Weekly Issue #9, Tuesday, February 7, 2006
Monday, June 12th, 2006“Now that we can do anything, what will we do?”
Welcome to Massive Change Weekly, an electronic newsletter sharing news about groundbreaking achievements in global design.
All of a sudden, ethanol has had its tipping point.
As everyone knows by now, George Bush got a different kind of religion this week when he announced that America was “addicted to oil” and made a surprise plea for developing alternative fuels like ethanol. A week before Bush’s State of the Union address, however, Fortune published a lengthy article, “How to Beat the High Cost of Gasoline”, where they argued, “Stop dreaming about hydrogen. Ethanol is the answer to the energy dilemma. It’s clean and green and runs in today’s cars. And in a generation, it could replace gas. Forever.”
Fortune’s piece appeared at the same time that GM (GM!) launched a new awareness campaign about their flexible-fuel vehicles that can run on both traditional gasoline and E85, which is comprised of 85% ethanol and 15% gasoline. http://www.onlygm.com I was surprised when I heard the first radio spot on NPR telling me that GM was committed to “energy independence”. Their slogan is “Live Green Go Yellow”.
Ford, though not as aggressive with a campaign yet, also touts its flex-fuel vehicles.
Media response to Bush’s address was extensive and, in some ways, predictably skeptical. The Wall Street Journal proclaimed “Bush’s Latest Energy Solution, Like Its Forebears, Faces Hurdles.” They cite as one of the hurdles that the “White House is offering little money to back up its rhetoric: just $150 million next year, hardly enough to revolutionize a multibillion dollar energy market”. But, as surely the WSJ knows, in the US at least, the switch to ethanol is going to have to be market-driven. High gas prices, uncertainty in the Middle East (made even more pronounced this week by the anti-Danish and anti-EU riots over political cartoons of Muhammed), a desperate need to turn GM and Ford a round, and a similar consumer demand that fueled the hybrid market, will all have a bigger impact on the transformation of the energy economy. Government will mainly help through the approach to taxes. (more…)








