Holden to push ethanol

"We are committed to having locally built Holdens running E85 in the market by 2010," GM-Holden managing director, Mark Reuss, said yesterday.

Biofuels, including ethanol, will become a lead alternative fuel for the company, he said.

"Ethanol is a renewable fuel and the costs are relatively small to modify existing technologies to make it viable.

"It has great potential, particularly the ability to produce it from waste."

E85 fuel has a mix of 85 per cent ethanol and 15 per cent petrol. Reuss wants to reduce Aussie motorists dependence on foreign oil.

GM-Holden is already well advanced on development work on an E85 Commodore. It is also in discussions with biofuels company Coskata in the US to build the first local cellulosic ethanol plant in Australia.

Cellulosic biofuel is produced from wood, grasses and non-edible plants.

Reuss remains confident that 2009 will be a better year for the car industry. It would also mark the transformation of Holden, he said.

"The key to success will be innovation and an eye for using less foreign oil by increasing efficiency or replacing it altogether with Australian energy alternatives," he said.

"Shifting consumer sentiment and the need to address climate change is driving a fundamental and permanent shift in the type of vehicle technologies the Australia car buyers need and want."

Reuss said the only thing certain about petrol prices was its volatility.

Ethanol is already in use in other parts of the world, including Brazil, where Holden already exports an ethanol fuelled Commodore sold as a Chevrolet.