National Ethanol Vehicle Coalition - FYI Newsletter, Volume 7, Issue 12, July 12, 2002
- From the May 2002 issue of the ”State & Alternative Fuel Provider Program” from the U.S. Department of Energy
The Iowa Department of Transportation (Iowa DOT) currently has 358 light-duty flexible fuel ethanol vehicles in its fleet of approximately 2,500. The number has increased from the 2001 count of 291 vehicles, which collectively drove 2.2 million miles during the year. Iowa DOT asks its employees to fuel the vehicles with E85 whenever possible. There is one E85 government station on site and sixteen public stations scattered throughout Iowa making fueling with E85 quite convenient.
David May, Iowa DOT’s Specifications Manager said, “I don’t know why anyone wouldn’t use E85. It’s easy, the vehicles are readily available, and the infrastructure requires no major alterations. If you’re concerned about environmental quality and energy security, it definitely helps in those areas. We also recognize the benefits to our local corn growers from our use of E85.”
Iowa DOT began acquiring alternative fuel vehicles (AFVs) in 1993, and it began using E85 in November 1995. It has exceeded its AFV requirements every year.
According to May, the environment at Iowa DOT is conductive to using E85 vehicles. Pre-EPAct Legislative requirements in Iowa provided the impetus for Iowa DOT to try something new and relatively inexpensive. The state code requires that 10% of all new vehicles purchased be alternative fueled. Support for AFVs among leaders and employees of Iowa DOT is nearly unanimous.
What’s your state doing to promote E85?????
The NEVC incorporated many new items into our organization the week of June 24, 2002. The organization now offers an updated E85 brochure, advertising on our bright, animated website, and a membership package organized specifically for individuals, ethanol producers, professional firms, and others.
The updated E85 brochure entitled “The Future Fuel is Now” offers much insight to both ethanol and E85. The eight-sided brochure provides definitions of ethanol, E85, and Flexible Fuel Vehicles. It also explains how E85 is domestically grown and its photosynthesis process. FFV offerings from 1998 to model year 2003 are listed along with vibrant colored photos. The NEVC is now offering patriotic colored mini bumper stickers and static stickers. Order yours today! You can view all the new promotional items online at http://www.e85fuel.com/nevc/promoitems.htm.
Advertising is also being brought to the improved NEVC website. Corporate banner and button advertising is now available for those who wish to show the NEVC audience their support of E85. For more information, contact Michelle Saab or visit http://www.e85fuel.com/advertising.htm.
NOW NEVC membership is available to individuals who wish to support the clean, domestic fuel – E85! The three-year or annual membership includes many benefits, which include:
To join the NEVC, visit https://www21.secure-website.net/~e85fuel/membership.htm.
Businesses may also become a member! For questions, please contact Randa Barker at info@e85.com.
Do your part to support this clean, domestic, renewable fuel known as E85. Become a member of the NEVC today!
Following is an inquiry sent from Brigham Young Student Scott Cameron to NEVC Executive Director Phil Lampert. The email addresses the costs and disparity between ethanol and gasoline.
“Mr. Lampert,
Hello. I am an engineering student at Brigham Young University-Idaho in Rexburg, Idaho. I have been studying ethanol as a gasoline alternative for some time. Believing ethanol to be a sensible and even superior product, I am writing a report about why E85 hasn’t made more progress against the gasoline market.
I noticed, on your website, your position and was hoping you could help me find relevant information. I am sure you are busy, but anything you could provide would be greatly appreciated. Ideally, I would like to find:
1. Objective breakdown of ethanol vs. gasoline production costs, including tax effects (a fairly simple breakdown would be best).
2. Future cost estimates and anticipated technology advances.
3. Personal testimonial or opinion on the cause behind eth/gas disparity.
These resources or web links to find them would be most helpful.
Thank you for your time.
Scott Cameron
. . . . . . . . . . . .
Scott,
While your questions are fairly simple, the responses to them are very difficult. Let me give it shot.
The cost of production of ethanol vs. gasoline is dependent on the cost of the feedstocks. Corn has averaged about $2/bushel for the past couple of years, but hit $5/bu. in 1997. A typical ethanol plant gets 2.8 gallons of ethanol per bushel of corn. Obviously the price of the corn will have a lot to do with the cost of production. Other production costs in the case of ethanol are fairly constant and would include labor, natural gas, rail shipping, etc.
The cost of gasoline is also dependent on crude costs. It is my understanding that the Saudis can get a 42-gallon barrel of crude out of the ground and to a tanker for $3 per barrel. In the U.S. this is about $5. You may wish to check at the American Petroleum Institute web site as I recall they have a good outline of the tax implications on gasoline, cost of marketing, refining etc.
Regarding future costs, again we must consider the value of the feedstocks, but in the case of ethanol, in the near future alcohol will be produced from waste products such as corn stover, wood slash, rice straw, etc. As corn becomes more valuable for its protein value in the world, it seems to me to be more likely we will begin to use waste to produce alcohol. Production technologies continue to be refined and improved, but I cannot give you a good number.
The disparity between the price of ethanol and the price of gasoline is a function of production of a product through the process of adding value, vs. pumping a raw material out of the earth that has a very, very low cost. Hydrocarbons do have value, but who pays for the resources? In the case of ethanol, there is a commodity that is grown, nurtured, and harvested on an annual basis. That costs more to do.
Check our website and also those of the National Corn Growers Association, American Coalition for Ethanol, and the Renewable Fuels Association. They should be of assistance.
Hope this helps.
Phillip J. Lampert
. . . . . .
Mr. Lampert,
Thanks very much for your reply; and thanks for the answers. I realize my questions were a bit general, but unfortunately that's the caliber of the paper I'm working on. I could only get so detailed in 10 pages or so (plus, I don't need a bunch of figures in a spreadsheet that only an accountant could read). So your information will be helpful in its non-detailed format.
Frankly, I think it's nuts that we remain beholden to foreign oil interests when a better answer is in our own back yard. That's why I picked this topic: Most people don't even know that fuel alcohol is an option. So you'll be happy to know that my class is now aware and convinced.
Thanks again for your input.
Scott Cameron”
Jackson Welker, nephew of NEVC Director of Administration, Randa Barker, is now the “poster child” for Wyandotte County’s summer Air Quality campaign. The 17-month old is currently featured on a billboard at Interstate 70 and Thirty-eighth Street in Kansas City, Kansas in an attempt to educate the public on ozone reduction and prevention.
“The summer billboard campaign is just one of several public
outreach projects that our agency has designed and produced,” said Justus
Welker, father of Jackson and also an Environmental Scientist with the Unified
Government of Wyandotte County/ Kansas City, Kansas - Department of Air
Quality. “Our agency has used the billboard campaign to educate the public
since 1998.”
This summer’s billboard states “One great little reason to keep our air clean. Properly inflate your tires. Keep your car tuned”. The campaign will run from June through August. All three billboard locations are within Wyandotte County/Kansas City, Kansas. The billboard will rotate to Interstate 70 and One Hundred-Tenth Street, near the Kansas Speedway, in July and the campaign will culminate in August at Interstate 635 and Kansas Avenue.
“I took over the responsibilities of the public education from the employee whose son was featured on the billboard last summer,” commented Welker. “Our previous billboard had been utilized for the past three years, therefore I thought it was time to redesign our campaign.”
The campaign traditionally uses a son or daughter from the Air Quality staff to model for each billboard. So was it by coincidence that the young Welker was chosen?
“Our previous billboard had been utilized for the past three years, therefore I thought it was time to redesign our campaign. I designed the billboard myself, so I think it looks spectacular. Seriously, I think it turned out great! We wanted a powerful tag line and focused on brevity for our examples,” commented Welker.
The billboard was funded by a combination of state and federal grant funds.
For questions or comments about the summer billboard campaign, contact Justus Welker at jwelker@wycokck.org or at (913) 573-6700.
Another group of individuals in Michigan is promoting the use of ethanol as an alternative fuel! The Ethanol Working Group (EWG) is a coalition of private and non-profit organizations, universities, and government agencies in Michigan that support the use of our homegrown fuel – E85. For information about receiving their newsletter, contact Kelly Launder, Michigan Biomass Energy Program (MBEP) Coordinator, at (517) 241-6223 or by email at: klaund@michigan.gov.
Thank you, EWG, for helping us in our fight to reduce the amount of imported oil and increase the use of E85!
The first Fuel Ethanol Conference in Thailand will be held on September 26-27, 2002 at the Regent Hotel in Bangkok, Thailand. The Asia Business Forum (Thailand), Thailand's leading conference organizer - a part of Asia Business Forum Group (ABF) in Asia, have been working hard since September 2000 to get this conference off the ground.
The conference will feature the key fuel industry trends, bio-fuels consumption, market development of fuel ethanol, Thailand fuel ethanol project update, national alternative energy policies and regulations, fuel ethanol production's specifications and quality controls, tax incentives, privileges for local investment, impact and business opportunity on existing fuel players (crude oil, conventional gasoline, fuel additives, etc.) and much more!
Registration for the conference is $1,195 but NEVC members can register with a 10% discount. For more information, contact Nuchada Paradeevisut at nuchada@abf-asia.com.
July 17, 2002
Governors’ Ethanol Coalition meeting in Omaha, Nebraska. For more information, visit http://www.ethanol-gec.org.
July 17-19, 2002
The American Coalition for Ethanol's 15th Annual Meeting and Ethanol Conference at the Holiday Inn in Omaha, Nebraska. For more information, visit http://www.ethanol.org.
July 23-25, 2002
FedFleet 2002 at the Kansas City Convention Center in Kansas City, Missouri. For more information, visit http://www.fedfleet.org.
August 10-13, 2002
2002 Convention and Trade Show sponsored by the Colorado Petroleum Marketers & Convenience Store Assn. and the Wyoming Petroleum Marketers & Convenience Store Assn. at the Snow King Resort in Jackson Hole, WY. For more information, contact Christi Krenke at (303) 422-7805 or at ckrenke@cwpma.org.
September 26-27, 2002
Fuel Ethanol Thailand at the Regent Hotel in Bangkok, Thailand. For more information, email abfbkk@loxinfo.co.th or email Nuchada Paradeevisut at nuchada@abf-asia.com.
October 6-8, 2002
National Association of Convenience Stores Show at the Orlando County Convention Center in Orlando, FL. For more information, visit http://www.cstorecentral.com/nacsshow/2002info.asp.
October 22-26, 2002
2002 National Conference of State Fleet Administrators in Mystic, CT. For more information, contact (623) 772-9096.
February 17-19, 2003
8th Annual National Ethanol Conference: Policy and Marketing at the Camelback Inn Marriott Resort in Scottsdale, Arizona. For more information, call BBI International at (800) 567-6411.
Please feel free to e-mail your story suggestions, comments, corrections or clarifications to us at info@e85fuel.com or call us toll free at 877-485-8595.
Phillip J. Lampert, Executive Director
Michelle Saab, Director of Communications
Randa Barker, Director of Administration