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    « The Ethanol Tax | Home | Ways For Small Businesses To Deal With Rising Fuel Costs »

    Ethanol Blend Inventor On Trial

    By Mr Ethanol | April 15, 2008

    Ethanol Producer Magazine:
    A decade ago, Colorado businessman William Orr pioneered an ethanol fuel blend he said was the solution to U.S. dependence on foreign oil. However, the government that gave him millions of dollars to fund his research now has him on trial in a federal courtroom, charged with 28 counts of fraud and tax evasion. Prosecutors say he fudged his fuel performance results.

    Orr, who founded Octane International Ltd., developed an alternative fuel in the late 1990s that he called Vapor Phase Combustion. It was a relatively cheap, simple mixture of ethanol, gasoline and manganese.ethanol-law.jpg In 2003, U.S. Congress awarded him a $3.6 million research grant funded by the U.S. EPA. He also solicited funds through Octane International to develop and market VPC.

    Using the EPA grant, Orr built a small laboratory in Colorado and founded the nonprofit National Alternative Fuels Association, which was created to test VPC in several stationary vehicles.

    Prosecutors allege Orr sent out periodic updates to contributors, making various claims about VPC and allegedly fabricating his connections to large oil companies meant to induce more investors to contribute. In all, the government claims 43 investors were persuaded to contribute more than $550,000.

    Topics: Ethanol, Invention, Law, News |


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