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Cleaning up in California

As oil majors embrace the use of ethanol in Californian gasoline, analysts are warning that it will cause a rise in prices at the pump, as Kevin Foster discovers

On July 11, oil major ExxonMobil announced it intends to switch to the use of ethanol as a clean-burning gasoline additive in California by early 2003, making it the fourth oil firm after BP, Shell and Phillips to do so.

ExxonMobil’s move came well in advance of the 2004 deadline set by the state for phasing out methyl tertiary butyl ether (MTBE) – the additive currently used in the state’s gasoline – in favour of ethanol. MTBE has been blamed for a number of water pollution incidents, and

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