Ethanol distilled from corn has already displaced about 10% of U.S. oil demand. The Environmental Protection Agency is just fine with a 50% increase in the amount of ethanol that refiners can blend into regular gasoline. Growing acceptance and use of E85 (85% ethanol & 15% gas) in vehicles equipped with "flex fuel" engines has also help reduce the amount of oil consumption in this country.
Although cars running on E85 get fewer miles per fill-up, the cost of a gallon of E85 is about 50¢ cheaper than a gallon of gasoline. Bio-fuels promise to make even greater inroads as production expands from corn to non-food materials such as algae, switch grass and even regular trash.
Blog - Ethanol
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