GM to make biofuel out of garbage

General Motors is planning on making biofuel with garbage at a cost of less than a dollar a gallon, the company's chief has said.

The US automaker has entered into a partnership with Illinois-based company Coskata which has developed a way to make ethanol from practically any renewable source, including old tires and plant waste.

The process is a significant improvement over corn-base ethanol because it uses far less water and energy and does not divert food into fuel. (AFP)