GM investing in ethanol maker

DETROIT, Jan. 14 (UPI) -- Detroit automaker General Motors says it is investing in a company that claims it can mass-produce ethanol for $1 a gallon or less by 2010.

While GM won't disclose its investment, Bill Roe, chief executive of 18-month-old ethanol maker Coskata, said it's enough to make Coskata a "speed to market play," USA Today reported Monday. The tie-in was announced during previews of the North American International Auto show.

Coskata's process uses lab-developed bacteria and an existing gasification technology to make 99.7 percent pure ethanol and water. Current ethanol production uses corn.

Coskata's process can use garbage, old tires and other waste, but Roe said wood waste probably would be the first used because it's easy to handle, inexpensive and available.

However E85 -- auto fuel that is an 85 percent ethanol blend -- has raised questions about health and financial costs. A Stanford University study said E85-fueled vehicles increase ozone levels and an upward shift in the number of vehicles that can use E85 could boost U.S. respiratory deaths.

GM disputes the report, saying it joined environmental, pro-ethanol and health organizations to seek a working group to reach consensus on ethanol's health effects.