'Green' Fuels For Your Car

Hurricanes Katrina and Rita are wreaking havoc on the national energy scene. Gas prices are at an all time high across the country.

In fact, according to fuelgaugereport.com, gas prices are a dollar more than they were last year. These prices are pushing consumers to look for ways to save money on gas. One answer is alternative fuels.

In the first of a three-part series called "The Energy Crunch," The Early Show co-anchor Harry Smith finds out from Green Car Journal Editor Ron Cogan about some creative ideas that could save you some money.

Most of the alternative fuels come from renewable energy sources like corn and soybeans, but other sources are byproducts of natural sources, Cogan says.

Ethanol

"The way you get ethanol is as E85," Cogan says from a state-of-the-art gas station in San Diego, Calif., that offers alternative fuels. "It's 85 percent ethanol and 15 percent gasoline. You can use that fuel in a diverse number of vehicles like the Ford Explorer. There are more than 20 models that are available that run on any mixture of gasoline or E85 ethanol in the same tanks."

Any car that takes ethanol is called a Flexible Fuel Vehicle (FFV). Right now, Cogan says 4.5 million cars on the road accept this fuel but many owners don't even know it. One way to find out is to look inside the gas tank cover for a sticker that says something like "this is a flexible fuel car" or "it takes E85 or ethanol." However, if your car does not have this sticker it is not wise to use this type of fuel.

"Alcohol fuels are more corrosive than gasoline," he says. "You have to have special fuel lines. It could affect the rubber part of the fuel lines. But E85 vehicles are made to be tolerant of alcohol. They're specifically made for that. Their engine management computers take into account real-time readings of what you run as a fuel."

E85 is cheaper by about 50 cents a gallon, he says, but buyers need to consider that alcohol fuels are also not as energy-dense as gasoline. "You'll get a little less fuel economy."

Biodiesel

"There are two ways of looking at biodiesel," he says. "We hear about folks that buy fryer oil and make their own diesel. But that's not a mass-market strategy. What you do have is a lot of businesses that are making biodiesel, typically from soy beans, and creating a fuel that's very energy-efficient, that's very environmentally compatible, and it could run seamlessly in diesel vehicles with little or no modifications."

Cogan says the problem with biodiesel is that it is not widely available. However, there are more production facilities being constructed across the country. He notes that Willy Nelson is one of the champions of biodiesel. And the advantages of using it are lower emissions, no soot and no sulfur.

Natural Gas

"Natural gas prices have gone up and down," Cogan says. "But we have pretty significant supplies of natural gas here … It's an abundant fuel in this country. Typical for natural gas, I believe prices here are maybe 50 cents a gallon less than the other fuels. Natural gas works just like gasoline. The Honda Civic GX has been out in fleets, used for about seven or eight years. We did a one-year test at our magazine so I've lived with this vehicle. Drives just like any other Civic. And it just has a very low emission. And the fuel is much cheaper."

The vision for the future is that there will be more choices available. Cogan says there are a growing number of hybrid cars on the road, and cars that run on hydrogen represent the greatest potential.

"The market will shake out the winners and losers," he says. "When you can walk into a dealership and order the car with the type of powered vehicle you want, that will be the future."

Tune in Thursday for simple ways to significantly reduce energy costs in your home.