What is ethanol and why use it
Ethanol (ethyl alcohol) is a clear, colourless liquid with a faint odour. It has a high latent heat of vaporisation and contains oxygen, characteristics that are relevant to its environmental performance in combustion as a motor fuel, and in its storage and distribution. It is a fuel made from the fermentation of cellulosic biomass - stuff like wood pulp and paper sludge, agricultural wastes, saw dust, vegetable and potato, municipal waste, softwood and hardwood. In the case of the BP product, the ethanol is derived from Australian sugar cane.
Ethanol is most typically blended with conventional petroleum fuel in a ratio of around 1:10 (one part ethanol to ten parts conventional fuel). This brew is known as E-10 and offers two primary advantages over conventional fuel - reduced greenhouse emissions and infinite resource sustainability. In other words, because it's sourced from quickly renewable resources such as sugar cane, it won't run out like fossil fuels eventually will.
Ethanol comprises around 37 percent oxygen by weight. Oxygen enhances the combustion of petrol in engines so that the fuel mixture is burnt more completely. This heightened efficiency helps to reduce exhaust emissions such as carbon monoxide and hydrocarbons. It should also be noted that ethanol is also a natural source of octane, which can be used instead of other possibly noxious chemical boosters. In addition to reductions in tailpipe emissions, ethanol is said to be more environmentally friendly to produce than conventional fuel.
Therefore, one of the greatest advantages of ethanol is it's derived from by-products - we no longer need to tap into an exhaustible natural supply. The plant and wood products mentioned above, the source of ethanol, are constantly in abundant supply.
Ethanol levels defended
A federal government decision was made not to cap ethanol levels in petrol as evidence which suggested the environmentally friendly fuel could damage engines was inconclusive. Instead, it urged the states to force petrol stations to display their blends so motorists could make their own choices. The government would reconsider its position on the cap if and when evidence proved the blends were damaging.
The scientific evidence on the issue is still unclear and evidence is not sufficiently compelling to lead to a 10 per cent cap. However, it might be in the future and if it is the government will act in that direction. However, the Queensland government had effectively limited the amount of ethanol in petrol to 10 per cent while South Australia did not have additives such as ethanol in its petrol and subsequently was unaffected by the federal government's stance. Tasmania also did not use ethanol in petrol while the Victorian government said it would push for uniform labelling standards for ethanol content.