ClearFlame Engines co-founders B.J. Johnson and Julie Blumreiter have developed a diesel engine that can burn straight ethanol. (Photo courtesy of Argonne National Laboratory)

HOUSTON (DTN) -- When ClearFlame Engines CEO B.J. Johnson told ethanol industry representatives about the potential ethanol market for the company's all-ethanol diesel engine, those at the recent National Ethanol Conference in Houston could have kissed him.

While concerns continue about the future of the Renewable Fuel Standard and whether the EPA will provide a 15-billion-gallon market for ethanol in light of small-refinery exemptions, Johnson said even an optimistic 20% market penetration into the $231 billion heavy-duty diesel market would in itself create 15 billion gallons of demand for ethanol per year.

"Ethanol burns more efficient than diesel," Johnson said.

"Why has it not happened? Ethanol is considered a gasoline additive. The solution? Get ethanol to burn in a diesel application. We're able to get a diesel engine to burn ethanol. We take the diesel engine design and implement it into a high-temperature combustion system.

"We're not fundamentally changing the design. No one has to give up the diesel-engine design. This is running on straight ethanol."

The reason ethanol's application in diesel engines hasn't happened is because the performance and simplicity of the diesel engine is tied to its dirty emissions, Johnson said.

But cleaner alternatives like spark ignition lack the performance required in many heavy-duty applications. ClearFlame's engine, Johnson said, is the only option to provide both high performance and low emissions.

The engine, still in the demonstration phase of development, can run on 98% ethanol straight off the rack or even on E85 so long as the fuel is close to 85% ethanol.

ClearFlame is working with Cummins Inc. and Argonne National Laboratory to develop the technology. Johnson said diesel fleets would have the potential to achieve a 40% reduction in carbon emissions and a $45,000 cost savings.