Vinod Khosla Sees End To Gasoline

President Bush has set the standard that will help fuel a boom in the alternative energy market, said Sun Microsystems cofounder and venture capitalist Vinod Khosla in an interview with CNBC's Maria Bartiromo in Davos, Switzerland.

"I have no doubt that 100% of our gasoline use can be displaced in the next 25 years," said Khosla, who supports the use of ethanol and puts half of his money in "green" investments. "I expect to see a major disruption in the oil business."

President Bush, in his State of the Union address Tuesday night, issued a new mandate to reduce gasoline dependency and increase use of ethanol and other alternative fuels. Khosla said this will create a "brand new $70 billion market in ten years" and "start the trend for technologies that will inevitably take over the oil business."

You can "absolutely" make money by going green, said Khosla, who believes ethanol can eventually be produced for less than $1 a gallon.

Where should investors put their green if they want to go green? Khosla cited VeraSun Energy as one of the most innovative alternative energy companies in the market today.