U.S. Flexfuel Cars: U.S. FlexFuel Cars Gain Popularity But Remain Underutilized

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FlexFuel Technology
FlexFuel vehicles, also known as flexible-fuel vehicles, are designed to operate on more than one fuel such as gasoline, ethanol, or methanol. These vehicles have flexible-fuel technology, which allows the engine to operate on more than one type of fuel. FlexFuel vehicles are generally designed to run on any blend of gasoline and ethanol up to 85% ethanol (E85).

Advantages of FlexFuel Technology
FlexFuel vehicles provide consumers more choice at the pump. E85 emits less greenhouse gases than gasoline. Since ethanol is a renewable fuel produced from crops, it helps reduce U.S. dependence on foreign oil. FlexFuel vehicles can use either E85 or regular gasoline, giving drivers fuel-choice flexibility depending on fuel prices. The technology allows the U.S. to utilize more of its domestic renewable fuel resources rather than importing as much oil.

Growth of FlexFuel Vehicle Sales
Major automakers first started offering U.S Flexfuel Cars models in the U.S. around 2001 as a way to increase fuel choices. Initially, they were marketed more as a compliance car to meet regulations than something consumers would choose. However, FlexFuel vehicle sales have steadily grown over the past decade. According to a study by the Department of Energy, there were over 15.5 million FlexFuel-capable vehicles on U.S. roads by 2018, accounting for around 6% of total light-duty vehicles. While still a small percentage, it shows FlexFuel technology gaining adoption over the years.

Infrastructure Limiting E85 Use
While the number of FlexFuel vehicles has increased, EPA studies found that the average FFV only uses E85 about 3% of the time. A major barrier limiting greater E85 consumption is lack of fueling infrastructure. As of 2021, there were only around 3,300 E85 fueling stations across the country compared to over 100,000 gas stations. Most are concentrated in the Midwest. Without widespread retail availability, most FFV owners primarily use gasoline since it's readily available almost anywhere. Building out the E85 fueling infrastructure on a larger scale would help boost actual E85 consumption.

Automakers Continuing FFV Production
Despite infrastructure limitations hindering greater E85 adoption, major automakers are still committing to FFV production with new models. For example, in 2021 Ford announced 28 of its 2022 vehicles would be E85 compatible. General Motors has incorporated FlexFuel technology across its lineups as well. By continuing FFV designs, automakers aim to provide consumer choice and hedge against fluctuating gas prices. It also helps meet Corporate Average Fuel Economy (CAFE) standards by expanding production of alternative fuel vehicles. As ethanol fuel infrastructure expands, these new FFVs will be poised to take advantage and increase overall E85 usage.

Government Policy Supporting Ethanol Growth
Government policies have played a role in advancing the ethanol industry and FlexFuel vehicles. The Renewable Fuel Standard requires increasing amounts of renewable fuels like ethanol to be blended into transportation fuel each year. Tax incentives promote building new ethanol plants and fueling stations. Government funding has supported research into next-generation cellulosic ethanol, which could further reduce dependence on oil imports. If cellulosic ethanol production ramps up as intended, it may supply greater quantities of E85 fuel for FlexFuel vehicles nationwide. Coordinated efforts between automakers, fuel producers, and policymakers could accelerate transition to low-carbon biofuels.

While current utilization of FlexFuel capability remains low, industry stakeholders maintain optimism for the long-term viability and scalability of the technology. Automakers continue FFV commitments as a compliance and diversification strategy. Fuel producers eye expanding infrastructure to unlock greater market access. Government policies aim to grow the U.S. biofuels sector. As these intersecting factors advance over the next decade, FFVs stand to gain increased relevance by better capitalizing on domestic renewable fuel resources and providing fuel price insulation for drivers. Though infrastructure challenges linger, further uptake of FlexFuel vehicles shows promise to aid the nation's energy security and environmental goals.

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