Khosla challenges oil companies with cheap ethanol offer

Vinod Khosla, a socially conscious entrepreneur who funds clean energy ventures among others, is calling oil companies' bluffs on fuels not made from fossil fuels. Khosla (read more about him here and here) has offered to supply enough ethanol to the oil companies at a fixed price so they can sell it all across America at $1.99 a gallon and still make a tidy profit. All the company has to do it commit to buying Khosla's ethanol for five to seven years. So far, no one has taken him up on it.
Khosla, writing his first article in the Huffington Post, says his offer would make it possible for ethanol to be available to everyone in America, now, at a fairly reasonable price (at least, compared to current gasoline prices), but the oil companies have zero interest in actually provide ethanol to consumers because, well, they made $80 billion last year selling dinosaur juice. He is also promoting the Clean Alternative Energy Initiative, a measure on the upcoming California ballot that would require oil companies pay for the oil they take out of California, just like they have to pay in other states.

[Source: Huffington Post]

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