The concern that I have with this story and the growing publicity it is a part of does not relate to the EROI of the process, that is best discussed by others. I am concerned however that it seems to imply that we have found something that will significantly change the transportation fuels situation.

But consider what else the story says

The state legislature this year passed incentives designed to increase the percentage of ethanol and biodiesel in Iowa fuel sales to 25 percent by the end of 2019. Three of every four gallons of gas sold in the state contain at least 10 percent ethanol, although most of the state's production is shipped elsewhere.

In the most productive corn state, ethanol will only, in fifteen years, supply 25% of the fuel needed. Given that this is the case, one wonders whether there is a great deal of sense in building a significant number of vehicles that can drive at the higher levels of ethanol concentration, since there being only a limited space where corn will grow profusely and the statement

unlike that of crude oil, the potential supply is virtually unlimited and close to home.

is not really true.

Nevertheless, as I commented some weeks ago, those that are currently investing in plants are seeing a relatively rapid return on their investment

When Horan and his partners sought $20 million for each of three new biodiesel plants, no request took longer than 10 days to fulfill. In one case, the offer was fully subscribed in eight days and the organizers sent $2.5 million back. Horan said banks have been willing to lend large sums with no collateral other than the refinery itself.

"People will drive all the way across Iowa to come to a meeting," said Horan, who grows soybeans and corn on 4,000 acres in Knierim, about 100 miles northwest of Des Moines, with his brother Joe. "It's the opposite of Big Oil. It's Little Oil. It's our oil."

I can see the sense in investing in ethanol at present, but I don't see the benefit in making vehicles that will drive at the high percentage concentrations (85% and above) since I cannot see how we can expect to see more than perhaps 7 - 10% contribution to the overall supply in the next fifteen years and at those concentrations the current engines will, I believe, function quite well.