Gov. Brian Schweitzer jumped behind the wheel of a new ethanol-powered Chevy Avalanche on Wednesday, fired up the engine and began to play with the truck's many gadgets.

But it was the truck's flex-fuel engine and what it could mean to Montana's economy and the state's environment that made the governor smile.

"The future of Montana energy will be a future made in part with ethanol fuel," Schweitzer said. "We fully intend for Montana to be a leader in renewable fuels."

General Motors loaned the new Avalanche to the Montana Department of Environmental Quality for one year as part of an effort between the company and 28 states to promote ethanol fuel.

The vehicle runs on E85, a blend containing 85 percent ethyl-alcohol and 15 percent gasoline. Only two stations in Montana currently sell the fuel, although several other stations sell a lower blend of E10.

Mark Cummings, a fleet account executive for General Motors, gave Schweitzer the keys to the jet-black vehicle. Cummings said GM is committed to the development of alternative fuels and has targeted E85 technology, or the flex-fuel engine, toward larger gas consumers like SUVs and pickup trucks.

The company has already installed the technology into its new line of Suburban, Tahoe, Yukon and Avalanche. Next year, Cummings said, the 2006 Chevy Impala will have the same technology.

"It's a totally renewable fuel," Cummings said of ethanol. "It's a replacement for fossil fuels."

E85, which burns much cleaner than petroleum-based fuels, is typically produced from the starch of agricultural products, mainly corn and other grains.

That, Schweitzer said, can help add value to Montana crops.

"We think ethanol will make it into 7- to 8-percent of the gasoline we use," Schweitzer said. "It's great news for Montana workers. It creates jobs and it's good for the environment."

Ethanol has been a boon to corn growers in Illinois, now the second largest producer of ethanol in the U.S. behind Iowa. The state is home to six ethanol plants which, just last year, produced 875 million gallons of ethanol from 325 million bushels of corn.

According to the Illinois Corn Growers, investment by the ethanol industry in that state now exceeds $1 billion, generating 800 jobs in plant operations and 4,000 jobs in the industry's spin-off service sector.

"There are no ethanol plants operating yet here in Montana, but there are five in the planning phases," said Lisa Peterson, public affairs coordinator for DEQ. "Three are in the feasibility stage and two others are looking for financing."

Schweitzer accepted the Avalanche on behalf of the state at a Holiday station on Euclid Avenue in Helena. The station became the first in the Capital City to offer E10, which contains 10 percent ethanol and 90 percent gasoline.

Unlike E85, the lower blend of E10 can be used in any automobile engine that burns gasoline and is more widely available.

"Schweitzer made renewable fuels one of the linchpins of his first term as governor," said Dave Samson, manager of the Holiday station. "I knew that with Schweitzer pushing ethanol in consumer awareness, people would want it, and they have."

Samson said he expects ethanol sales to increase as public awareness grows and as the fuel becomes more widely available.

The rising price of oil, now over $60 a barrel, could also bring ethanol fuel to the fore. In the future, ethanol may be produced from biomass resources, including agriculture and forest waste, and specially grown energy crops.

"In Montana, we have the opportunity to produce a lot of renewable fuels, not just ethanol, but wind and solar as well," Schweitzer said. "Montana will be a leader in renewable fuels, not a follower."

Reporter Martin Kidston can be reached at 447-4086, or at mkidston@helenair.com