Bill adds natgas, coal as renewable fuel source

Reuters
WASHINGTON Wed Jan 18, 2012 6:21pm EST

WASHINGTON (Reuters) - Ethanol derived from natural gas and coal would compete with corn-based ethanol for a share of the U.S. motor fuel market under a bill unveiled by six U.S. House members on Wednesday.

The bill would include ethanol produced from alternative sources, such as natural gas and coal, in the federal mandate for use of renewable fuels.

Corn ethanol accounts for the lion's share of renewable fuels, and second-generation biofuels have been slow to reach commercial viability.

Lead sponsor Pete Olson, a Republican congressman from Texas, said a larger number of feedstocks would encourage larger alternative fuel production.

An ethanol trade group, Renewable Fuels Association, said, "There is nothing renewable about fossil fuels and they have no place in national renewable energy policy."

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