Robert Davis, senior vice president of product development for Mazda North America, said in an interview that Mazda has formed a partnership with BP Biofuels to begin testing biobutanol in its engines.

“We view biobutanol as a distribution solution,” Davis said. “We see it as a huge opportunity because it won’t require wholesale change of the infrastructure.”

Biobutanol is a biofuel that’s similar to ethanol. Like ethanol, biobutanol can be made from a range of sugary crops, such as sugar beets, sugar cane, and of course, corn. It can also be made from non-food biomass, such as algae or switchgrass.

But unlike ethanol, biobutanol can be transported in existing pipelines and stored in underground tanks because it doesn’t suffer from the same evaporation issues.

Another key advantage is that it has a higher energy density than ethanol. Ethanol has only 64 percent of the energy content of gasoline, which means that on a full tank of ethanol, you can drive only 64 percent as far. Biodiesel has close to 87 percent the energy content of gasoline.

While it’s an environmentally and business friendly solution, commercialization of biobutanol is still a few years away. There are numerous companies racing to develop a process that delivers large scale amounts of biobutanol, including oil giant British Petroleum, and start-ups such as Amyris Biofuels, Cobalt Biofuels, and Coskata.

But production is just one part of the puzzle. Auto manufacturers must also sign off on this new transportation fuel for use in their vehicles.  At present, biobutanol can be used as a gasoline blending agent in concentrations up to 16 percent. But if politicians and manufacturers are serious about ending the U.S.’s dependence on foreign oil, they’ll need to bump up that percentage. But before that increase can happen, manufacturers will need to validate the higher concentration of biobutanol and make changes to their vehicles as needed. Biobutanol does not affect engines, but it degrades some components in the fuel delivery system, such as rubber and aluminum.

Some biobutanol producers estimate that cars will need $150-250 worth of modifications to replace these parts. Compared to buying an E85 vehicle -- a vehicle with an engine designed to consume 85 percent gasoline and 15 percent ethanol --, that dollar amount might seem like a bargain. But the hitch is that no manufacturer will honor warranties for cars that have been fueled with biobutanol in concentrations greater than 16 percent.

But they should.

Biobutanol is poised to be the “have your Viper and drive it too” solution. It’s a carbon-neutral solution made from renewable resources, and it comes tantalizingly close to the energy equivalency of gasoline. Interestingly, biobutanol has more octane than gasoline. Gasoline octane ranges from 87 to 93, while biobutanol has octane levels of 95 to100 percent, says Frank Gerry, manager of fuels product development for BP.

Though BP’s testing has not specifically been conducted in high-performance engines, Gerry sees no reason why it wouldn’t work in engines of premium vehicles.

“Those [cars] that benefit from octane would benefit from butanol blends in gasoline,” he says.

Most cars benefit from high octane, but high performance vehicles require it to prevent engine knock. High octane biobutanol means that you can fuel your BMW M3, drive fast (though not as far), and not feel completely guilty about the environment.

But will it save you money?

Biobutanol is estimated to be cost competitive with gasoline. One biobutanol manufacture estimates that it can be produced for $1.50-$2.25 per gallon without receiving the same government subsidies that apply to ethanol. The base price for a gallon of gasoline is $3.09 at $130 per barrel.

Despite its financial allure, few carmakers are testing it in their vehicles or banking on it as an up-coming alternative fuel.

Given the obvious benefits of a home-grown alternative fuel that can be transported and stored in existing infrastructure, why aren’t more carmakers pushing biobutanol?

“We have a, which came first, the chicken or the egg" situation,” Kyle Johnson, director of Environment, Energy and Safety Policy Communications for GM, wrote in an email exchange.

Though Johnson says GM is excited about this alternative fuel, it isn’t currently testing the alternative fuel in its vehicles until it’s a commercially viable transportation fuel. Until that time, the auto giant is developing vehicles for hydrogen, biofuels (E85 and biodiesel) and electricity.

But Mazda is looking to the future and taking the plunge. In the next few weeks it will begin sending engines to BP’s testing facility in Naperville, Ill.  BP has already begun independent testing of engines from a range of manufacturers.

Davis estimates that it’ll take two to three years for testing to be completed, which is approximately the same timeframe that many biobutanol producers expect to begin demo production. Being a first mover with this alternative fuel and a partner with one of the biggest advocates in the field should help Mazda with its technology and differentiate the company in a field crowded with similar fuel economy strategies.

With no lobby to tell the biobutanol story, Mazda will use motorsport events to inform the public on the benefits of biobutanol. An avid racing fan, Davis has already asked the American LeMans to add butanol to the list of fuels in the Green Challenge that will debut in October. And when it does, Mazda will be ready. Davis says they’re examining how to re-engineer the Furai concept race car to run on 100 percent butanol. Currently the Furai runs on 100 percent ethanol.

But biobutanol is just one of many technologies making its way down the pipeline. Mazda has a significant investment in developing a production hydrogen car that is currently being tested in Japan. The carmaker has recently made a commitment to reducing fuel consumption by 30 percent by 2015, which will be accomplished through lightweight materials, fuel saving technology, and more efficient engines. Absent from their press material is a mention of biobutanol, which begs the question if biobutanol be a long-term strategy for Mazda.

“[It’s] too early to tell,” wrote Davis in a follow up email, “[it] could be one of many.”