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119572 1 (1982-09-24)

handle is hein.gao/gaobacsxo0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 FOR RELEASE ON DELIVERY September 24, 1982, 119572 Statement of F. Kevin Boland Acting Deputy Director, Energy and Minerals Division Before the Subcommittee on Fossil and Synthetic Fuels of the House Committee on Energy and Commerce Mr. Chairman and Members of the Subcommittee: I appreciate the opportunity to discuss tentative observations resulting from work we have ongoing at the Subcommittee's request on institutional and infrastructural inpediments to the emergence of a methanol transportation fuel market. We have done a substantial amount of work in the alcohol fuels area over the past 3 years, and have examined methanol in consider- able detail. Based on our work we are highly optimistic about methanol's potential as an automotive fuel. Of course, we all recognize that economic and other incen- tives must exist for the public to adopt methanol for widespread use. While methanol has vast potential and many advantages relative to other options, our optimism about methanol as a fuel must be tenpered by several realities. Beyond the current abundance of gasoline supplies, the major obstacle inpeding achievement of methanol's potential is the problem of sinul- taneously developing methanol production, a distribution network, and suitable vehicles. That problem will not be easily overcome. Prospective methanol producers cannot invest the enormous sume of capital necessary to build methanol plants without the

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