Home ethanol maker gets boost from record oil

By Barani Krishnan

NEW YORK (Reuters) - A U.S. firm that believes it has the answer to high fuel prices with machines that make ethanol at home says it has been swamped with orders even before the first unit ships in September.

Since California-based firm E-Fuel Corp officially unveiled the 100 MicroFueler last month, there had been overwhelming interest in the product due to crude oil holding above $130 a barrel, Chief Executive Thomas Quinn said.

"We've got hundreds of orders from individual customers and on the dealers side, we've thousands of interested dealers, which would add up to thousands more orders," Quinn said late Wednesday.

The machine processes sugar and water into alcohol -- the chief energy-producing component in ethanol -- and delivers it to fuel tanks of vehicles through a hose and nozzle just like those used at gas pumps.

It runs on electricity, stands as tall as a stacked up washer/drier, is weather-resistant and can be placed in a garage or anywhere outside the home.

Quinn says the MicroFueler can turn out a gallon of ethanol for just under $1, compared with the average pump price of U.S. gasoline hovering above $4 a gallon. With crude oil hitting a new record above $140 on Thursday, analysts say gasoline is unlikely to get any cheaper.

The MicroFueler can generate 35 gallons of ethanol a week, using 10 to 14 pounds of sugar per gallon.

Since most automotive experts do not endorse 100 percent usage of ethanol in motor vehicles, Quinn said customers could fill three quarters of their tank with the MicroFueler and top up the balance with regular gasoline.