DES MOINES -- Former Virginia Gov. Mark Warner, a Democrat who is eyeing a possible 2008 presidential bid, said in Iowa Tuesday that America's development of renewable fuels could become the next technology revolution if leaders are willing to invest in it.

Warner should know about technology revolutions. He made his fortune as co-founder of telecommunications giant Nextel.

"If we could lead in the development of alternative fuels, and make that the IT revolution of the 21st century, what it could do in terms of American economic growth would be tremendous," Warner said.

He said the federal government currently spends about $2 billion every year on energy research and development, what Warner called "a pittance."

"We spend, on a conservative estimate, $7.1 billion a month in Iraq. Two weeks of Iraqi spending redeployed to energy research and development might do more to decrease our dependence on that part of the world, might do more to spur American job growth, might do more to actually, if we got it right, save the planet," Warner said.

Warner made a joint appearance Tuesday in Des Moines with Democrat gubernatorial nominee Chet Culver, followed by a lunch with party activists.

He praised Iowa's efforts to convert gas pumps so they can pump the corn-based fuel E85, a blend of 85 percent ethanol. He said the relatively inexpensive capital investment could have positive implications not only Iowa's economy but America's security and job creation.

The cost of 10 percent ethanol, traditionally priced lower than unleaded gasoline, has crept above unleaded gas in recent weeks due to a surge in demand. States that had depended on fuel additive MTBE are now turning to ethanol after a ban on MTBE took effect.

Warner acknowledges there will be bumps along the way in pricing for ethanol. He said the government has to assure the private sector that the country is serious about developing renewable fuels and moving away from a dependence on fossil fuels.

"I think the market is waiting for those signals. They're not getting it out of Washington at this point. They're sure as heck not getting it out of the administration and for that matter, Congress," he said.

Warner described America's current energy policy as "borrow money from China to buy oil from countries around the world that don't like us."

He said in some cases, the money America spends around in some situations may be in effect funding both sides of the war on terror.

"I don't think anyone has fully connected the dots in America, between national security, American job creation, energy policy and global warming," Warner said.

Culver, who has proposed the $100 million Iowa Power Fund to develop renewable energy sources in the state, said Iowa is faced with a great opportunity to expand the national market for ethanol.

"We need to make Iowans and Americans realize an investment in purchasing E10 is an investment in our country. It's a national security issue. Let's keep the money in Iowa. Let's keep those dollars in our state," Culver said.

Contact Charlotte Eby at (515) 243-0138 or chareby@aol.com.