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123835 1 (1984-04-04)

handle is hein.gao/gaobacthe0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. FOR RELEASE ON DELIVERY EXPECTED At 10:00 A.M. WEDNESDAY, APRIL 4, 1984 STATEMENT OF F. KEVIN BOLAND SENIOR ASSOCIATE DIRECTOR RESOURCES, COMMUNITY & ECONOMIC DEVELOPMENT DIVISION BEFORE THE .SUBCOMMITTEE ON FOSSIL AND SYNTHETIC FUELS AND SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER OF THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON REMOVING BARRIERS TO THE MARKET PENETRATION OF METHANOL FUELS Mr. Chairman and members of the Subcommittees: I appreciate the opportunity to participate in these hearings on methanol fuel. My remarks are based primarily on our 1983 report.1 PERSPECTIVE Before getting to specifies, some background and perspective might be useful. Using methanol as a fuel to power automobiles and other vehicles requires two conditions--the production and availability of methanol itself and the existence of vehicles designed to use it. The principal barrier is the economics of producing and distributing both the fuel and the vehicles. Such an undertaking involves complex and costly operations; it raises the chicken or the egg' question of which comes first. Auto manufacturers are unwilling to produce cars designed to run on methanol fuels until the fuel is widely available at the retail level. Methanol producers and marketers are unwilling to invest in a fuel that has as yet few customers. In the absence 1Removing Barriers to the Market Penetration of Methanol Fuels, RCED-84-36, October 27, 1983. 123835

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