DEVILS LAKE, N.D. - Check-off funds paid by North Dakota corn producers are being used for a wide variety of projects, according to Tom Lija, N.D. Corn Growers Association executive director.
Lija gave his report at the Lake Region Extension Roundup that was held recently in Devils Lake. The group's present activity list ranges from corn breeding to working with federal crop insurance programs for corn growers in the state.
"It could be summed up as quite a few things going on at the moment," Lija said, before going into more detailed accounts on some of the programs.
Ethanol: The group has been working on initiating a "flex fuel blender pump" program in the state, and they are looking at doing an information campaign for those flex fuel vehicle owners. He noted that currently there are over 200 of the blender pumps installed across the state at 50 different locations.
"Overall, I would say the program has been a very successful program, in terms of renewal energy," he said.
Lija also noted that in 2009 the flex fuel vehicles in the state were using about 23,000 gallons of the E-85 blend each month. As of a month ago, that total is close to 112,000 gallons a month.
The number of flex fuel vehicles has increased significantly during the same time period. In 2009 the number of flex fuel vehicles registered in the state totaled 23,345. According to the latest figures that figure has jumped to 64,630 registered vehicles at the end of 2011.
Currently a campaign is underway to increase awareness of what flex fuel vehicles are capable of.
"Only 20 percent of the flex fuel vehicle owners know what they have,"Lija said, "and the auto industry isn't that familiar with flex fuel vehicles, either. The overall goal of the campaign is to increase usage 6 to 10 percent state wide, and we certainly think that is achievable."
Nitrogen related research: The rapidly escalating prices of inputs for corn has caused some concern, and one of those areas where costs have increased is for nitrogen fertilizer.
The NDCGA has invested about $40,000 to study the feasibility of collecting the natural gas that is now being flared off at the oil wells in the western part of the state and using energy from wind power to convert that to nitrogen fertilizer. The project is in the concept stage at this time.
In addition, work is now being done to explore if the corn grown in this region can be sold at a premium, if some of the inputs going into raising that corn - such as the nitrogen process just mentioned - come from renewable sources.
"We do think we have a pretty good opportunity to tie into what's going on in the western part of the state," he said.
NDSU corn breeding program: For the past four years the NDCGA has been assisting the efforts of Dr. Marcelo Carena, head of the corn breeding program at NDSU.
ÒDr. Carena has really turned the corner on crossing a lot of the NDSU material with industry material, and it looks like he has some very good potential for commercial success,Ó Lija said.
"Dr. Carena submitted seven inbreds for test crossing and we have four of those that did get advanced in their trials."
The NDCGA also recently asked the State Board of Agricultural Research and Education (SBARE) to place a priority on getting an assistant corn breeder in the program and also requested they look at adding a corn pathologist to the NDSU Extension program.
"With over 2.5 million acres of corn now we certainly think that is a pressing need and the State Board of Ag Research did seem amenable to that," Lija said.
Crop insurance: The NDGCA spent some time with the Risk Management Agency (RMA) in looking at crop insurance rates for corn and also low test weight issues. And, according to Lija, several additional counties in the state will now be eligible for crop insurance protection for corn without filing extra paperwork. These counties include-Cavalier, Bottineau Towner and Rolette along the northern tier of counties in the state; and Morton, Oliver and Mercer counties along the Missouri River.
"Producers in these counties will now not have to file for written agreements," he explained. "They simply will be able to go into their crop insurance agent. RMA stated they now have enough data to prove, agronomically corn is a generally accepted farming practice in these counties, and we are pretty happy that happened."
Indianapolis, Ind. -- Fort Wayne residents now have more options when it comes to using ethanol blends when fueling their flex fuel vehicles (FFVs) with the opening of a new flex fuel pump by Lassus Handy Dandy at their new location at Dupont Road and I-69.
The flex fuel pump - the first of its kind in Fort Wayne - offers FFV owners a choice of two different ethanol blended fuels, E85 and E30. Drivers of flex fuel vehicles can use up to an 85 percent (E85) blend of ethanol-to-gasoline in their cars and trucks.
Lassus Handy Dandy is one of six companies to participate in a new program launched by the Indiana Corn Marketing Council (ICMC) last year that awards cost-share dollars to fuel retailers in Indiana looking to install flex fuel pumps. Currently, the Flex Fuel Pump Program - funded by corn checkoff dollars - has awarded grants for 14 flex fuel pumps to be added at fuel stations across the state.
"Hoosier corn farmers believe consumers should have choices at the gas pump when filling up their vehicles and we are excited to be partnering with Lassus to bring this choice to Fort Wayne drivers," said Mike Shuter, ICMC president and farmer from Frankton, Ind. "The Flex Fuel Pump Program allows consumers to select the type of ethanol blend they want to use in their flex fuel vehicle and take advantage of the potential cost benefits of ethanol while using an environmentally-friendly, renewable American-made fuel."
The Flex Fuel Pump Program offers fuel retailers grants up to 50 percent or $20,000 (whichever is less) toward the purchase of a flex fuel pump, hardware and storage tank or the conversion of an existing pump to a flex fuel pump. The program is open to both new and existing stations in Indiana. ICMC is currently accepting applications for the program.
Fuel stations can apply for grants to install pumps that dispense blends of 10 percent ethanol, 15 percent or more ethanol, and 25 percent or more ethanol. Station owners will be reimbursed up to $25,000 for the first pump and $10,000 for each pump thereafter.
As of Monday, 14 stations had applied and five had been approved:
Main Stop, Scotland: $25,000 for one pump
Cenex, Toronto: $35,000 for two pumps
Eagle Stop, Wakonda: $25,000 for one pump
Mac’s Corner, Stephan: $35,000 for two pumps
Farmers & Merchants Co-op Oil, Madison: $35,000 for two pumps.
The state plans to spend $3.5 million over five years on the program to expand ethanol dispensing infrastructure in the state.
Ethanol, specifically corn ethanol, has become quite a contentious issue. We deride its short comings in public debates and highlight every aspect of its production and use that doesn’t achieve our goals of what the fuel of the future should be. Our arguments for and against ethanol often sound as if we’re talking about a wholly isolated topic. But we’re not. We’re talking about fueling vehicles. With the current market and state of technology dominated by liquid fuels, there are just two primary options: gasoline and ethanol. So an anti-ethanol stance is effectively pro-gasoline. Therefore, when we weigh the shortcomings of ethanol, we need to make sure our scale is calibrated to gasoline.
Energy Balance Critics often call out ethanol for its poor “energy balance.” Technically speaking, a fuel’s energy balance is calculated by dividing the usable energy contained in the fuel as a finished product by the energy that was required to produce that fuel. One gallon of ethanol (which contains approximately 76,330 BTUs* of energy) requires about 56,500 BTUs of energy to produce. This result gives corn ethanol an energy balance of 1.35. Another way to think of it might be that we put about 7.5 gallons of ethanol in to get 10 gallons out. It’s a small gain, what with all the growing, harvesting, processing, and distribution involved in production.
But what about gasoline? That takes no small amount of extraction, refining, and distribution to produce. For each gallon of gasoline (which contains approximately 116,090 BTUs of energy), the entire production process uses about 142,800 BTUs. That means that gasoline’s energy balance is about 0.82. In other words, we must put in 12.2 gallons of gasoline to get 10 out. Few people realize that we actually lose energy by producing gasoline. If corn ethanol was simply less of an energy loss than gasoline, it would win by comparison — but ethanol is actually an energy gain.
It is also a common argument to call out ethanol for its lower miles per gallon (MPG) value than gasoline. As indicated, the energy content of a gallon of ethanol (about 76,330 BTUs) is less than gasoline (about 116,090 BTUs) — about 35 percent less. Less energy per gallon means we can perform less work by burning that gallon. However, case studies and personal experiences have not shown a 1 to 1 correlation between the energy content and MPG result of using ethanol. For example, although a fuel mix of 85 percent ethanol (E85) has 29.1 percent less energy than pure gasoline, observed mileage reductions are typically in the range of 15–20 percent. This is due to ethanol’s higher octane rating, which allows more efficient conversion of ethanol’s energy potential into actual miles traveled. And this balance could be even more favorable as vehicle technologies advance to better handle a variety of fuels.
Water Use Another point of concern regarding corn ethanol is water consumption. Advances in ethanol production have lowered water use down to around 3 gallons of water per gallon of ethanol produced. On top of this, water used to produce corn (which is dominated by irrigation) adds anywhere from 5 to 300 gallons of water per gallon of ethanol, depending on where in the United States the corn is grown. Gasoline production edges out ethanol by using about 2.5 gallons of water per gallon of gasoline produced. However, with greater reliance on crude oil sources like tar sands, this number will jump to around 6 gallons of water per gallon of gas.
In water use, ethanol initially looks like a loser, particularly when taking into account energy content. However, water used to irrigate crops tends to cycle back around, but water used for tar sands mining gets stored in toxic tailing ponds that require active deterrents to ensure migrating birds don’t land on the water and die. So each fuel’s environmental impact regarding water use is also less cut and dry.
Crop Consumption An often noted statistic from the U.S. Department of Agriculture suggests that around 40 percent of the corn produced in the United States is used for ethanol. However, there are caveats to this number that aren’t often highlighted. Corn used for ethanol (yellow corn #2) is not the variety of corn used for human consumption. So it’s too simple to suggest that a bushel of corn used for ethanol directly reduces a bushel for someone to eat. Additionally, if you take into account co-products of the ethanol process, such as animal feed, a more accurate number for ethanol’s take of the U.S. corn crop is closer to 20 percent. By comparison, in 2010, a full 40 percent of the U.S. corn crop went straight to animal feed. Although ethanol is clearly a part of the agriculture market, the demand drivers affecting corn and food prices — which include market speculation that can cause significant price fluctuations — are much more varied.
Additional Considerations Gasoline infrastructure is already established, and ethanol is difficult to move through pipelines due to corrosion and other issues. On the other hand, corn ethanol is more renewable than gasoline. But increased demand for corn is a partial driver of global land use changes. Closer to home, corn ethanol raises pressure on issues like the conversion of prairie to farm land. However, gasoline demand increases environmental impacts from drilling, flaring, and spills during transportation. Either way, the Gulf Coast gets hit — dead zones as a result of excess fertilizer use on farms or massive oil spills as a result of our demand for crude sources. Clearly, the list of faults when comparing corn ethanol and gasoline can grow rapidly if you’re being thorough.
The Result When all is said and done, it’s important to balance our criticisms with a focus on our goal: Improved transportation fuels. Every point we make has to account for a frame of reference, and it really begs for complaints against corn ethanol to be a bit more measured.
This article might suggest that I’m proethanol. Actually, I’m pro-better-fuels. The future of gasoline is expanded tar sands extraction or deep water drilling, negligible improvements in refining, expanded pipelines over vital aquifers, and long-buried pollutants released into our atmosphere.
In comparison, the future for ethanol is not nearly as dreary. Ethanol plants that use coal for heat are converting to natural gas, while others are integrating biomass-based energy into their systems. The industry as a whole is also advancing — producing more ethanol using less energy, less water, and less corn per gallon. As corn ethanol improves, better and more beneficial biofuels are coming along for the ride, including cellulosic ethanol — fuel produced from other crops and non-food plant materials. The infrastructure used to distribute corn ethanol can do the same for fuels created from more sustainable feedstocks.
Last but not least, it’s important to note the changing playing field. Nearly every major auto manufacturer has or is in the process of introducing an electric vehicle. And natural gas, hydrogen, and other fuel opportunities are being explored. Although not every new option will be an improvement, we need to judge each fuel in the context of competing alternatives to understand its benefits. I’d rather not support a step backward when our new footing puts us ready to leap forward.
— Eric Jensen is the Energy Coordinator for the Izaak Walton League’s Midwest office in St. Paul, Minnesota. He holds a degree in Chemical Engineering from the University of Wisconsin-Madison.
* A BTU or British thermal unit is a common unit of energy approximately equivalent to the amount of heat needed to raise the temperature of a pound of water by 1 degree Fahrenheit.
USDA announced today that it is accepting applications for Renewable Energy and Energy Efficiency Projects through the Rural Energy for America Program (REAP).
REAP is designed to assist farmers, ranchers and business owners to build renewable energy projects and help meet the nation's critical energy needs.
For 2012, USDA has approximately $25.4 million available to fund REAP activities, which will support at least $12.5 million in grant and approximately $48.5 million in guaranteed loan program level awards.
USDA is now accepting the following applications:
renewable energy system and energy efficiency improvement grant applications and combination grant and guaranteed loan applications until March 30, 2012;
renewable energy system and energy efficiency improvement guaranteed loan only applications on a continuous basis up to June 29, 2012;
renewable energy system feasibility study applications through March 30, 2012; and
energy audits and renewable energy development assistance applications through February 21, 2012.
More information on how to apply for funding is available in the January 20, 2012 Federal Register, pages 2948 through 2954.
Please contact Director or Regulatory Affairs, Chris Bliley at 202 545 4000 if you have any questions.
In addition, USDA launched a new energy web site to serve as a one-stop-shop for data on energy. To visit the site, click here.
The Ferrari FF is am incredibly impressive machine, as it mixes a multitude of assets with the Prancing Horse’ spirit. However, there will always be some who want more, and if that includes seriously upping the ante on the hp front and making the vehicle much greener at the same time, we want to know about it.
Norwegian aftermarket developer Customised.no has developed a bio-ethanol E85 conversion for the Ferrari FF, which takes the car’s V12 unit from the stock 660 hp to 887 hp, while seriously reducing emissions.
Eco fans will want to know about the last part, so we’ll explain that the FF drops from 360 g/km to under 100 g/km, a value that rivals that of diesel superminis. Remember, all this happens in a car that can deal with the 0 to 62 mph game in under 3 seconds (the stock time sits at 3.7 seconds).
The vehicle shown in the adjacent image has been reportedly converted by a Ferrari dealer, so there might even be slight hopes of the warranty being maintained, but there’s no official info on this.
Officials from the Iowa Speedway announced today that the Iowa Corn Growers Association and the Iowa Corn Promotion Board will continue their title sponsorship of the annual Iowa Corn Indy 250 event at the 7/8-mile tri-oval on Saturday, June 23.
The 2012 Iowa Corn Indy 250 will be one of the most anticipated races on this year’s INDYCAR schedule. Last year’s event at the Rusty Wallace designed track was a highlight with one of the best open-wheeled race finishes as Marco Andretti and Tony Kanaan kept spectators standing until the spectacular finish.
Craig Floss, CEO of Iowa Corn, expressed his excitement for the sponsorship and for the continued support of the IZOD INDYCAR series as a promoter of ethanol. “Iowa Corn looks forward to our sixth year as the title sponsor of the Iowa Corn Indy 250 powered by ethanol. This year will be exciting as INDYCAR moves to E85. Consumers can fill up their flex fuel vehicles with E85, and drive just like the pros, except with a speed limit of course.”
In 2006, the INDY Racing league switched to ethanol. Since then, the league has saved an estimated 20,000 gallons of fuel per season. In 2012, the league will use E85-an ethanol blended fuel with up to 85% ethanol and 15% gasoline to be closer to products consumers can find at the pump. E85 can be found at more than 160 stations throughout Iowa and can be used in 1 in 10 Iowa vehicles designated as Flexible Fuel vehicles.
Iowa Speedway President Stan Clement shared his feelings about one of the best partnerships in all of motorsports.
“Iowa Corn has been sponsoring this race since our inaugural season, a sponsorship which is now entering its sixth year,” Clement said. “It’s been a tremendous relationship, and we value their partnership, both with us and our race fans.”
One of four ovals on the 2012 IZOD INDYCAR Series schedule, the Iowa Corn Indy 250 will be the headlining race of an open-wheel weekend on Friday, June 22 and Saturday, June 23.
Lincoln, NE-A new blender pump is now open in Arcadia at Trotter Service.
This E85/blender pump is one of approximately 60 in Nebraska to offer the renewable fuel, ethanol. This station will offer unleaded, E10 and other mid-level ethanol blends including E85 and diesel. Trotter Service in Arcadia is a full service station. To find a list of retailers that offer E85 and other mid-level ethanol blends visit the Nebraska Ethanol Board website at www.ne-ethanol.org or check the Nebraska Corn Board website at www.nebraskacorn.org.
Over 117,000 Nebraska motorists currently own a flexible fuel vehicle which can run on any blend of ethanol and gasoline, up to E85. To confirm if a vehicle is flex fuel, drivers can check their owner’s manual, their gas cap, look for the flex fuel emblem on their vehicle or visit the website www.ne-ethanol.org/e85.
“E85 is cleaner than gas, it’s produced right here in Nebraska and more and more vehicles can use it every day,” said Todd Sneller, Nebraska Ethanol Board’s Administrator. “When flex fuel drivers fill up on E85, they’re strengthening Nebraska’s economy, making our country more energy independent and going easier on the environment,” Sneller said.
“Giving consumers a choice is also another benefit. This new blender pump will offer flex fuel vehicle owners a fuel choice based on price, performance, and availability,” said Kim Clark, Ag Program Manager with the Nebraska Corn Board.
Sign up for the Nebraska Ethanol Board’s FFV club for updates of new E85 locations and other announcements. Go to www.ne-ethanol.org/ffv to sign up now.
Ethanol – the generic fuel. Nice phrase that might have some merit as a slogan. It’s adapted from a letter to the editor from Merle Wise, Sebastian, Fla., that was posted on www.tcpalm.com, the website of several newspapers serving the Florida Coast and Palm Beaches. The letter was about how the Ineos New Plant BioEnergy cellulosic ethanol plant under construction in Vero Beach, Fla., would provide jobs.
In his letter, Merle made an interesting argument I haven’t seen before: “Ethanol is the ‘generic’ for gasoline. It's produced from sugar in Brazil and the Philippines, from corn in the United States and can be produced from a number of renewable crops.”
I like that. It’s a different twist to talking about the renewable fuel that reminds a person how adaptable ethanol is. The industry has taken an ancient biologically-based process, fermentation to alcohol, and created a large-scale, increasingly more efficient process producing a fuel that is making a difference in the market. The U.S. is dominated by corn ethanol because the Midwest is best place in the world to grow corn. In Brazil, it’s sugarcane. Russia doesn’t have a lot of ethanol production, but we ran a story several months ago how they are seriously looking at using potatoes from a region that has big potato production. Sugar beets is the feedstock of choice in Europe.
And, of course, there’s the promise of cellulosic ethanol using any one of a number of waste streams high in cellulose. The plant under construction in Vero Beach is commercializing a process developed by Ineos, one of Europe’s big chemical companies. They intend to use municipal solid waste and agricultural wastes to generate power and make ethanol. Indeed, cellulosic ethanol may be the solution to urban waste problems. Rather than landfilling MSW, it will be used for energy. One of the big investors in cellulosic ethanol projects right now is Waste Management, North America’s largest firm specializing in garbage hauling and landfills.
We are very, very close to seeing this take off. The first commercial-size cellulosic plants are under construction. It’s a critical step. Range Fuels is one spectacular example of a process that wasn’t sufficiently vetted before scale-up, and it sank the company. We regularly talk to many cellulosic developers, who always exude great confidence, although most have been methodical about thoroughly testing and tweaking their processes. Many are very close to seeing if they’ve been smart enough to get it right. If they are, I predict three areas will quickly see cellulosic ethanol plants sprout up -- cities with serious landfill problems, forested areas with abundant and underutilized wood resources and prosperous corn ethanol producers who have part of the infrastructure in place and some low-hanging fruit for cellulosic feedstocks.
One big hurdle must be overcome: we have maxed out E10. Just about all of ethanol possible is now being blended with gasoline. E15 is on its way to full approval, but it needs to be successfully introduced as an E10 replacement. There’s a lot of work being done to pin down how to optimize engines for ethanol. Right now, the crappy mileage when using higher ethanol blends is most often a result of engines still being optimized for gasoline, and not taking full advantage of ethanol’s higher octane rating. Instead, we’ve heard that refiners are using ethanol’s octane so they can refine more gasoline out of a barrel of crude and get their high-priced crude to go a little further.
If we’re at the blend wall now with just corn ethanol production in the U.S., there won’t be a market for the cellulosic ethanol when it finally comes online. That is why keeping incentives for cellulosic ethanol in place in the RFS and elsewhere is so important. It is critical that people with FFVs begin using E85. It would be a game changer if FFVs were to start performing better using higher blends, which those engine optimization efforts may yet show.
Merle’s letter attracted the usual anti-ethanol comments, as will this blog, no doubt. It is a long, hard slog, to turn that sentiment around. But we just have to keep at it. Many of the anti-ethanol arguments are based on distortions and downright fiction. A few have merit, and keep the industry on its toes. Is ethanol a perfect fuel? No. Is gasoline? It’s far worse, in my opinion. You could say -- choose your poison. For me, I’ll down ethanol any day, in the form of wine or a good micro brew. Not only is ethanol the generic fuel, it’s a generic spirit.
EUGENE, Ore. (KMTR) -- Driving new jobs and a greener way to fuel your car, expansion in Eugene for the Oregon-based fuel business Sequential Biofuels, as the company has just opened up its second retail gas station in west Eugene.
A small Oregon company with roots in Eugene, Sequential Biofuels has expanded with the opening of its second company-owned station on 18th and Chambers in Eugene, near the Albertsons grocery store and Eugene Coffee Company. While Sequential has special pumps and product out for sale at other gasoline stations and sites across Oregon, the company only has two stations now that it owns itself.
What makes Sequential Biofuels different from the other big box gas stations is the different types of fuels the company sells and where the fore sale gasoline and bio-fuel blends come from.
The company prides itself on being an coconscious fueling retailer who’s products are available for use in nearly every single car on the road.
At the new location, Sequential is selling four different types of fuel, including E-10, E-85, Biodiesel 5 and Biodiesel 99.
E-10 is a 10% ethanol, 90% gasoline blend. By Oregon law, all gasoline retailers are required to blend their “regular” fuel with 10% ethanol.
The E-85 blend is 85% ethanol and 15% gasoline for use in “Flex Fuel” cars.
Sequential’s Biodiesel is available in 5% or 99% blends.
The fuel used is all made locally in Oregon as well. All of Sequential’s ethanol fuel is made in Cornelius, Oregon, by a company that uses food waste to make ethanol. The Biodiesel is made at a facility in Salem.
“The high level message is, 'hey, come try us out.' You're going to find our fuel performs as good or better than any other fuel you're going to buy in town and we're a local company,” says Ian Hill, CEO and Co-Found of Sequential Biofuels.
“This is about creating and supporting a local economy and keeping those dollars closer to home,” says Hill.
While Sequential’s new station is on both sides of the road at 18th and Chambers, the station operates as one whole.
Next up for the site, Sequential will finish a remodel of the old Circle K store at the station by early February 2012. There, Hill says the shop will sell local foods like pastries and sandwiches, also local beers and other drinks.
In the near future, Sequential is hoping to install a solar panel array at the 18th and Chambers location. It’s also considering putting in some electric car chargers and storm water recycling technology.
The fuel company’s other station on McVay Highways near Lane Community College remains open for business. That site open in 2006.
Ft. Myers, Fla. flex-fuel drivers now can fuel up with E85 thanks to Mid-State Energy, Inc.
The Ft. Myers Marathon station, opened the E85 station last week. Mid-State Energy also opened up a Circle K E85 fueling station in 2010 in Lake Wales, Fla., with partner Protec Fuel.
“Our company believes in not only giving choice to our customers,” said Ken Allen, Jr., president of Mid-State Energy, “but in providing options that will help our country to become more sustainable and help in some little way to minimize our dependence on foreign oil.”
Protec Fuel, based in Florida, has partnered with Mid-State Energy to manage the E85 installation and provide fuel for the company’s new greener burning fuel offering. Protec is a turnkey E85 company specializing in station conversions and fuel distribution. Flex-fuel vehicles can run on E85 and gasoline. E85 is a blend of 85 percent ethanol and 15 percent gasoline.
“We commend Mid-State for its dedication in not just opening one E85 station, but its second station as well,” said Todd Garner, CEO of Protec Fuel. “Plus, Mid-State is not only choosing to offer a cleaner-burning option for customers, but a way to differentiate itself in the marketplace,” he said.
Mid-State Energy says it hopes to offer multiple alternative fuels, such as E85 and biodiesel, at the location someday. Besides E85 selling at a lower cost than conventional gasoline at the Ft. Myers and Lake Wales locations, it is better for the environment and supports our U.S. and local economies.
A "great marketing tool" is how Carl Nelson, of the Marcus Junction board, describes the new flexible fuel blending pump he says is expected to be installed at the Marcus Junction fuel outlet, along Highway 3, within the near future.
The blender is being made possible through a $7,500 USDA Rural Development Rural Energy for America Program (REAP) grant awarded last month.
It is one of five such grants to be awarded in Iowa as a part of the program.
U.S. Agriculture Secretary Tom Vilsack said it is seen as "stabilizing energy costs to create an environment for job growth" in rural America.
Kim Clay, area specialist for business programs at the USDA's Rural Development office, Le Mars, says she's grateful her office had opportunity to be a part of facilitating the grant.
"Iowa is the leader in the country when it comes to biofuels, but we still have a relatively limited number of pumps offering consumers anything more than E10," he said. "We have a potential great demand for E15 and E85, we just need more facilities that can offer them.
"We are pleased to be helping Marcus Junction with the installation of their station's first flexible fuel pump," he said referring to the grant covering 25 percent of the total project cost.
Nelson said he and others on the Marcus Junction, LLC board, feel customers will welcome the new fuel options made available with installation of the blender pump.
The station currently has 12 diesel pumps, 11 gas pumps and one E85 pump. This will be the station's first flexible fuel pump.
"Our customers have indicated their desire for additional fuel options," he said. "We've seen some customers blending their own fuel when they pull up, but this is going to make it a lot more convenient for them.
"I see the new pump at the same time helping increase our E85 sales, which since the fuel became available have been amazing," Nelson said.
He also added his appreciation for the support of his board in planning for the new blender pump and assistance of the Siouxland Interstate Metropolitan Planning Council (SIMPCO) in grant preparation for the project.
"We feel we've, you might say, been ahead of the game when we first opened (in 2006) as the first in the county offering alternative fuels," Nelson said. "Our investors who pooled their money together to get it started gave a lot of thought to the site layout and what could best serve our customers. We see this as taking another step forward."
Colwich, KS—Last July, it might have seemed surprising when the government announced ambitious plans to raise corporate average fuel economy (CAFE) standards to 54.5 MPG by 2025.
However, across the map, from Detroit to Japan, the automotive industry said that the seemingly impossible MPG number was an attainable goal.
What’s more, the bulk of the heavy lifting to get there will be accomplished by utilizing high-efficiency internal combustion engines that deliver lower C02 emissions per mile.
One hurdle to address is that these high-efficiency engines need higher-octane fuel to realize their full fuel efficiency and performance potential.
Making higher octane gasoline at the refinery is an expensive process, which is then passed on to the consumer.
Could a cheaper and more environmentally-friendly source of octane be found in ethanol?
The answer is a resounding, ‘yes,’ according to the fuel testing results that were just released.
The fuel research was conducted by AVL, a global industry leader for the development of powertrain systems with internal combustion engines, instrumentation and test systems.
The first phase of fuel testing began in January 2011 and ended in December 2011; the fuel testing study was funded in part by ICM.
Identifying A New Way to Test Fuel
Recognizing ethanol’s full octane value required some practical thinking about how ethanol is added to fuel, and to show how ethanol performs in new direct-injection engines.
The AVL tests incorporated multiple gasoline base fuels, various compression ratios and several automotive fuel systems to demonstrate ethanol’s performance.
One of the surprising results revealed in this testing was the additional benefits of ethanol’s favorable octane sensitivity.
By plotting both ethanol’s chemical octane and sensitivity benefits along with the cooling effect, test results showed that ethanol offers twice the octane potential.
The focus of testing was to evaluate the various fuel blends along a range of knock limit operation rather than just evaluating one set point as is done today.
“Until now, most testing of ethanol allowed match blending and the base gasoline varied each time ethanol was added – which yielded inconsistent results due to variability of the gasoline fuel.
“As an effect of this particular testing approach, it limits the ability for results to show increased performance of ethanol.
“This new testing data has proven to be a great tool to illustrate how much performance can be achieved by simply adding ethanol to gasoline.
“We are seeing a significantly higher value for ethanol and use of intermediate blends to support the changing needs of the automakers and the new fuel efficiency standards that have been issued,” said ICM’s Steve Vander Griend.
Yielding Higher Octane Performance
The fuel performance study revealed that E30 yielded higher octane performance compared to Iso-Octane, which is the reference fuel for determining the 100 octane scale
Current testing standards of the American Society for Testing and Materials (ASTM) would show much less octane potential for E30.
“These real-world results show that ethanol blends have the potential to offer much more octane value than previously estimated by methods prescribed by the ASTM.
“This is very good news for automotive engineers who are looking to higher-octane fuel as they strive to meet higher fuel efficiency and performance standar
“Most importantly, consumers stand to gain the most from saving money at the pump,” continued Vander Griend.
Ethanol’s favorable performance can be particularly beneficial under high engine load conditions that often result in contributing to higher emissions from motor vehicle exhaust.
The potential benefits include lower emissions and better fuel economy which equates to lower C02 per mile with utilizing mid-level ethanol blends.
ICM looks forward to supporting future fuel test studies that will continue to prove the performance and value that ethanol delivers.
In addition, through continued collaboration with various stakeholders, the biofuels industry stands ready to assist in achieving aggressive fuel efficiency standards that will reduce our dependence on foreign oil and promote cleaner cars that won’t pollute our air or constrain consumers’ wallets at the fuel pump.
This connection explains why every president since Nixon – including Obama – has called for a reduction in foreign oil in an attempt to shield our economy and our national security from its influence.
There is no reason to believe that the goal will be any different in 2012—especially since it’s an election year—but, the result can be different if this Congress makes one important decision: invest in Flex Fuel vehicles.
The author states, “[T]he auto industry can make flex fuel cars a reality. Once multi-fuel vehicles become available, the normal market forces of demand, supply and price would help the alternative fuels gain acceptance and reduce dependence on oil.”
Today, there are nine million Flex Fuel vehicles (FFVs) out of a total of 249 million vehicles on the road. Automakers have committed to producing more FFVs, but in order to make that investment effective, we need a simultaneous expansion of Flex Fuel pumps to deliver the mid and high level blends of ethanol to run in those vehicles.
Making Flex Fuel vehicles as commonplace as conventional cars will give retailers the confidence they need to invest in Flex Fuel pumps.
As the author concludes, “Once the car user has the confidence that he will be able to refill any fuel, he will naturally choose the most economic alternative. This will help contain petroleum usage and its prices and create a strong market pull for the alternative fuels.”
Energy security is national security. We can no longer afford to allow a handful of countries exert unlimited influence on our wallets or our safety. Increasing the number of Flex Fuel vehicles on the road will increase access to alternative fuels, put more money back into consumers’ pockets and create a more secure energy future for our children and grandchildren.
Meetings are being held around South Dakota to advise petroleum businesses about the state’s ethanol blender pump grant program.
Sioux Falls is among the meeting sites. The local meeting will begin at 9.m. Jan. 12 at the South Dakota Technology Business Center, 2329 N. Career Ave.
The meetings are being hosted by the Governor’s Office of Economic Development in conjunction with the South Dakota Ethanol Producers, American Coalition for Ethanol, Growth Energy, South Dakota Petroleum and Propane Marketers Association, and the South Dakota Association of Cooperatives.
The grant program was created to help station owners defray the cost of installing ethanol blender pumps, which help offer consumers a variety of fuel choices, including non-ethanol fuels and various ethanol blends.
A total of $950,000 is available in this year’s program. The program awards up to $25,000 for the first blender pump and up to $10,000 for each additional pump.
Rick Serie, director of market development for the American Coalition for Ethanol, said the organization is happy to be working with the state on the effort.
“We are pleased that the state continues to lead the way in creating programs to encourage marketers to install more blender pumps,” he said.
A similar program was a big success last year, Serie said.
Those interested in South Dakota’s new blender pump incentives can learn more at a Yankton meeting this week.
The Governor’s Office of Economic Development (GOED) and several industry associations are hosting meetings across the state to field questions about the Ethanol Infrastructure Incentive Grant Program. The officials will explain how the grants work, who’s eligible and other program specifics.
The Yankton meeting will be held at 1 p.m. Thursday at the Old Human Services Center campus in the South Training Center (old chapel), 132 Mickelson Drive.
The meetings around the state are open to any station owner seeking more information, said GOED spokeswoman Brooke Bohnenkamp.
“The meetings are geared toward stations that are looking to add blender pumps,” she said. “(That includes) stations without any blender pumps or stations that already have blender pumps but want to install additional pumps (that) qualify for the program.”
Thursday’s meeting sponsors include the GOED, South Dakota Ethanol Producers, the American Coalition for Ethanol, Growth Energy, South Dakota Petroleum and Propane Marketers Association, and the South Dakota Association of Cooperatives.
Several dozen stations in South Dakota have blender pumps, including three in Yankton, Bohnenkamp said. The Yankton stations include Double T Truck Stop on U.S. Highway 81, Cork ‘N Bottle at 1500 Broadway and Prairie Pumper at 909 Broadway.
The state provided assistance with the installation at the three stations, Bohnenkamp said. In June 2010, the GOED held a news conference at the Double T Truck Stop shortly after their pump was installed.
Last month, Gov. Dennis Daugaard announced the GOED is making $950,000 in grants available to help pay for the installation of ethanol blender pumps and associated infrastructure at retail gas stations in South Dakota.
Grant awards up to $25,000 are available for installation of a station’s first blender pump. Grant awards up to $10,000 are available for installation of each additional pump.
The new fuel dispensers, also known as flex pumps, will help promote value-added agriculture in South Dakota, Daugaard said.
“Ethanol production is a very effective way to increase the value of our agriculture base,” the governor said. “By making more ethanol blends available, we are improving producer opportunities, creating jobs, and stabilizing our domestic fuel supplies.”
Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota.
During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative (REDI) Fund.
South Dakota produces about one billion gallons of ethanol a year, and blender pumps allow motorists to select their desired blends of gasoline and ethanol, according to the GOED.
South Dakota was the first state in the nation to allow ethanol blender pumps, the GOED said. More than 100 pumps currently help support South Dakota’s 15 ethanol plants and the nearly 900 South Dakotans directly employed by the industry.
“Ethanol use is a very simple and real way South Dakotans can decrease their dependence on foreign oil and promote a homegrown product,” said Dana Siefkes-Lewis, president of South Dakota Ethanol Producers Association.
“Through this grant program, we hope more gas stations make ethanol blends available to South Dakota consumers, in turn supporting South Dakota’s economy and those employed by the ethanol industry.”
The majority of the grants will be awarded on a first-come, first-served basis; the final 20 percent will be awarded competitively.
“This program is a great way to assist marketers in installing the additional equipment required to sell high blends of ethanol above E-10 for use in flex-fuel vehicles,” said Dawna Leitzke of South Dakota Petroleum and Propane Marketers Association.
The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps.
The State of South Dakota has allocated $3.5 million over the next five years to get the program on its feet.
Funds can only be used for dispenser, associated hardware and other tank fueling infrastructure. Funds will be provided to grantees on a reimbursement basis with proper supporting documentation.
Projects must be completed and reimbursement must be requested within six months of the grant approval date. A written extension may be granted by the GOED.
GOED will begin accepting grant applications today (Monday). For more information, visit http://www.sdreadytowork.com/blenderpumps.aspx.
The high-ethanol fuel known as E85 has gained a small foothold in Minnesota in recent years, thanks in part to a subsidized price advantage and the presence of major producers and blenders in the state.
Now, the federal tax credit that boosted the industry is gone, raising questions about the fuel's future.
Without the 38-cent-per-gallon subsidy that went away Jan. 1, E85 prices are moving up. It's still cheaper than gasoline, but the shrinking difference may not be enough to compensate drivers who get fewer miles per gallon because of the fuel's lower energy content.
"E85 is going to have a tough road ahead of it," said Dustin Haaland, director of renewable fuels for CHS Inc., an Inver Grove Heights-based farmer-owned cooperative that is a major blender and retailer of ethanol under the Cenex brand.
The post-subsidy era also brings tough choices for owners of flexible-fuel vehicles, including the state of Minnesota, which has more than 3,000 vehicles capable of burning E85, and in 2010 used 963,000 gallons of it.
They must decide whether to support a fuel that is 85 percent home-grown ethanol even it it's no longer competitively priced. Minnesota is the nation's fourth-largest ethanol producer, and leads the nation with 364 retailers selling E85.
"We have our eyes open, and we are watching this," said Tim Morse, director of Minnesota's fleet. "We think it is too early to make any kind of decision right now."
Morse said he wants to see if the full 38 cents of lost E85 subsidy gets added to the state's fuel price. That could boost the state's annual E85 bill by $366,000.
Last week in the Twin Cities, E85 was 16 cents to 40 cents lower than regular gasoline, which also rose in price. That's as little as a 5 percent price difference. E85's price advantage has sometimes been more than four times better and averaged 17 percent last year, according to the state Commerce Department.
At Lerum Auto, the only E85 dealer in Richfield, owner Dean Lerum had another 1,000 gallons of E85 delivered on Wednesday -- at the new, unsubsidized price.
"I am going to let the market decide," said Lerum, for whom E85 once represented 25 percent of fuel sales, but now accounts for 5 to 7 percent. "If it drops a whole lot more, I will get rid of it."
E85's many challenges
E85, whose sales in Minnesota peaked in 2008, has always faced challenges. Americans own more than 8 million flex-fuel vehicles capable of burning E85 or gasoline. Yet only about 2 percent of gas stations sell E85. The fuel also decreases a vehicle's miles per gallon by 15 to 25 percent compared with gasoline, experts say.
"It's a product slightly ahead of its time," Jeff Broin, the CEO of ethanol producer Poet, said last month. "While it is a fantastic fuel, is extremely environmentally friendly and it's obviously using a lot of Midwest corn, the engines in the cars today don't burn E85 very efficiently."
Broin and others in the ethanol industry say E30, which is a 30 percent ethanol blend, probably is a better deal for flex-fuel vehicles, at least for now. But that blend is available at few stations, usually from special pumps that allow drivers to select a blend.
Many retailers are reluctant to make the investment in such pumps because motor fuel is a low-margin business. Cenex stores, with their ties to a farmer-owned cooperative, have been a leader in offering a range of ethanol fuels, with 374 locations offering E85 and other blends.
"The blender pump is the future," said Haaland of CHS.
Outlook for pricing
Regular gasoline, which is 10 percent ethanol, also lost 4.5 cents per gallon in subsidy when the Volumetric Ethanol Excise Tax Credit expired Dec. 31. It's a smaller amount because the 45-cent tax credit was for each gallon of ethanol mixed by refiners and blenders. They are still required to blend ethanol, though not necessarily at 85 percent.
Some experts suspect the full effect of the post-subsidy E85 price changes hasn't yet reached retail pumps. Around the state, E85 prices have always varied widely, and can be influenced by such things as the proximity to an ethanol refinery, said Kelly Marczak, director of Clean Air Choice, a program of the American Lung Association.
"We hope that while our pocketbooks are important, people will also consider it is a homegrown fuel,'' said Marczak, whose organization says E85 reduces ozone and other air pollutants.
In the shifting energy markets, E85 potentially could regain its price advantage. Its margin vs. gasoline is greatest when oil prices are high and corn prices are low. But corn prices have been high, and oil prices may be headed higher.
"Gas prices have moved higher recently because of what is going on with the Iranian threat of closing the Strait of Hormuz," said Brian Milne, energy editor for Telvent DTN, a news and data service for the energy industry. "Also, in looking at the U.S. economy there are signs it is on a growth trajectory and that has boosted oil prices."
As prices for 85 percent ethanol fuel are rising in the wake of the expiration of the Volumetric Ethanol Excise Tax Credit (VEETC) on January 1, the Coalition for E85 is increasing its effort to have American-made 85-percent ethanol recognized as an alternative fuel along with natural gas, propane, and hydrogen alternatives.
The expiration of the VEETC resulted in an immediate a 38-cent increase on every gallon of clean E85, which the coalition notes reduces the incentive for Americans to buy domestically produced fuels, and endangers the investments of millions of Flex Fuel auto owners, E85 retailers, producers, equipment manufacturers, and other supporters.
“Despite the tax credit’s expiration, we are continuing to work to protect the investments made by millions of Flex Fuel drivers, and thousands of retailers and producers who want to keep money spent on fuel right here in our country,” said Matt Horton, CEO of Propel Fuels, a leading member of the Coalition for E85. “Oil companies didn’t need the tax credit to keep blending ethanol into gasoline, but America’s alternative fuel retailers need the tax credit to keep E85 affordable. Without Congress’ continued support, America will become more dependent on foreign oil.”
The Coalition for E85 is urging supporters to reach out to their representatives and show support for E85. A tool kit including sample letters to Congress, pump top posters for retailers, and social media links can be found on the coalition’s website.
The two Republican presidential candidates who topped the Iowa Caucus in a virtual dead heat Tuesday night are both considered to be supporters of renewable fuels.
According to the Iowans Fueled with Pride Iowa Caucus Voters Guide, Mitt Romney and Rick Santorum were two of four candidates who expressed support for major renewable energy issues, including the Renewable Fuels Standard. The guide shows the winners also support a fair and equitable energy tax policy; the attempt to ban E15; and consumer fueling choice through programs to increase the number flexible fuel vehicles (FFVs)and blender pumps in the nation. The other two candidates who scored well in all those categories were Newt Gingrich and President Obama.
Ron Paul, Michelle Bachman and Rick Perry all were opposed to the RFS and increasing FFVs and blender pumps, while only Rick Perry was against E15 and a “fair and equitable energy tax policy” that would “create a level playing field for energy taxes” by revising the permanent tax benefits enjoyed by the petroleum industry.
The voter guide was mailed to approximately 10,000 Iowa households with residents who are directly involved in Iowa ethanol refineries and was also promoted to all of Iowa’s 250,000 agricultural households via email, the Internet and social media. An electronic version of the guide can be viewed at: www.IowansFueledwithPride.com.
It's because Congress declined to renew the 30-year-old federal subsidy for ethanol, letting it expire Sunday.
Ethanol, denatured grain alcohol used as a proven smog-cutting ingredient, currently makes up 10% of most gasoline-based motor fuel for general use, so-called E-10. In a few areas, E-85 fuel, 85% ethanol, also is available. E-85 can be burned only by vehicles equipped for "flex fuel."
How much the end of the subsidy could add to gas prices, and how soon, is yet to be seen. Ethanol blenders got a 45-cents-a-gallon tax credit, which amounts to 4.5 cents for the amount blended into each gallon of E-10 fuel.
It's hard to calculate the immediate impact. Oil prices and ethanol stocks are in flux. And unknown is the impact of another move by Congress: dropping the 54-cents-per-gallon tariff on ethanol imports. Brazil is a leading global producer of ethanol made mostly from sugar cane.
In the U.S., ethanol primarily is made from corn. That has made the ethanol subsidy controversial because of allegations that it raised food prices. The estimated $6 billion annual cost of the subsidy also has added to the federal deficit.
The end of the subsidy, however, has caused barely a ripple among ethanol backers or corn producers. Corn prices remain high because of healthy exports, especially to China. E-10 is now standard, and more demand for ethanol is guaranteed by an escalating federal alternative fuel mandate requiring more use of it.
"Things have changed. The marketplace has changed," says Matt Hartwig of the Renewable Fuels Association, which represents ethanol makers. "Today, ethanol is 10% of the nation's gas supply."
Trading in benchmark crude opens this week at $98.83 a barrel. Crude prices averaged $95.09 in New York trading last year, up from $79.64 in 2010 and $62.11 in 2009, the Associated Press reports. The Energy Department expects oil prices in 2012 to average $98 a barrel.
Gas prices averaged $3.28 for a gallon of regular (E-10) nationwide Monday, according to AAA, up from $3.07 a year ago. E-85 ethanol averaged $2.95. But because cars can't squeeze as much mileage out of every gallon of ethanol, the price when adjusted to equal the mileage of a gallon of regular was $3.88.
A World Bank spokesman recently warned that a global oil crunch could happen as early as 2015 with prices climbing over $150 a barrel from the current $95 - 97 level. From the first global oil shock of 1973 when the oil prices doubled from $25 to over $50 per barrel, there have been several periods of sudden rise in oil prices following some price softening, though the trend of oil prices have always been upward. The past cases of price hikes were by cut-backs in oil production by the OPEC ( Oil Producing and Exporting Countries) as a geo-political tactic. As soon as the OPEC restored production levels, the oil prices fell back.
Flex fuel vehicle
The new price spike, however, is predicated on the world demand for oil exceeding supply. The global oil production has stagnated at around 89 million bpd (barrels per day) for the past three years. New oil capacity coming on stream barely equals declining output from operating oil wells. The demand from China alone is projected to grow from the present 9 million bpd to 15 million bpd by 2015. There is similar high growth expected from other emerging economies.
The transportation industry is the major user of oil. Some 70 million cars and over 50 million motorbikes and other petrol using vehicles are being made at present. This number is set to increase rapidly as the large populations in the emerging economies lift themselves up from low income levels. Oil is also needed for a number of other end uses including production of petrochemicals, plastics and fertilizers. If the transportation industry could begin to substitute oil with other fuels, it would reduce pressure on oil demand and price increase.
Threats of global warming
In addition to the emerging demand-supply imbalance, the continued use of oil for transportation complicates the problem of containing carbon emissions. Over 40 percent of global carbon emission is from oil usage and another 40 percent from coal based power generation. From large central carbon emission points like power plants or process industries, there could be the option of carbon capture and sequestration as a means of containment until clean energy solutions including renewables become widely adopted. It is impossible to capture emissions from the millions of transport vehicles. New technologies like electric vehicles are still some way from being fully acceptable.
The rise of flex fuel vehicles
The internal combustion engines used in transportation vehicles work not only with gasoline (petrol and diesel), but also with other fuels such as compressed natural gas (CNG), methane and ethanol. After the first oil shock of 1973, ethanol made from farm produce began to be blended with gasoline. It was initially blended to the extent of 10 to 15 percent but now there is the E85 blend which is 85 percent ethanol and 15 percent gasoline. CNG vehicles have become accepted for city transportation vehicles even in the emerging economies. Methane gas from municipal landfills and other waste processing facilities is being used in Europe for both transportation and home heating applications. In the future, coal bed methane could emerge as a plentiful energy source.
These alternative energy sources have not become popular with personal transport vehicles like cars, mainly because the filling stations for these fuels have not become as commonplace as gasoline filling stations. Car makers have not introduced alternative fuel cars because buyers are concerned with convenient fuel availability. Alternative fuel outlets have not grown in numbers since there is very little demand. Some of the same issues are impacting acceptance of electric vehicles.
The need, therefore, is for car makers to develop vehicles that can carry and use multiple fuels at the same time. A hybrid electric vehicle is one example of a multi-fuel vehicle, which uses two different but complementary drive technologies. Auto makers have demonstrated that multi-fuel vehicles are possible and practical in various sizes of passenger cars. Two of the auto majors had displayed concept cars in auto shows of 2006 but have not, thereafter, taken the idea forward to commercial production. In 2011, a racing car has been designed with a multi-fuel engine. These trends, summarized below, indicate the that the auto industry can make flex fuel cars a reality. Once multi-fuel vehicles become available, the normal market forces of demand, supply and price would help the alternative fuels gain acceptance and reduce dependence on oil.
Current trends
1. Multipla Multi-Eco: Fiat to run on gasoline, methane and bio-ethanol
Multipla Multi-Eco
Fiat displayed this concept car at the 2006 Paris Auto Show. This car had three separate fuel tanks, one for regular gasoline, the second for methane gas and the third for E85. The driver can choose between these different fuels by a switch selection and the electronic fuel monitors would adjust combustion characteristics of the engine to accept these fuels.
The Multipla Multi Eco concept was developed from Fiat's very popular entry level car named the Panda Panda. It was first offered for dual fuel operation with gasoline and methane gas. In the concept car, the E85 was added with the view that the car model could be used in different parts of the world with the fuel available there.
2. Trans Star Racing Dagger GT
TranStar Racing Dagger GT
This handcrafted 2011 Racing Dagger GT is capable of 2000 hp power and 2000 lb-ft of torque and can accelerate 0-60 mph is 1.5 seconds. This car can reach a top speed of 300 mph and expects to break land speed records in the coming racing car season.
This racing car is fitted with a multifuel engine made by Nelson Racing , that can run on gasoline, methanol, hydrogen or ethanol delivered from two separate tanks, one for liquid fuels and the other for gaseous fuels. This engine helps demonstrate that alternative fuels do not impede car performance.
3. Volvo Multifuel Concept Car
Volvo Multi-Fuel concept car
This mid-size family sedan of 2006 vintage from Volvo featured the use of 5 different fuels, two of them liquids and three gaseous fuels. The liquid fuels were gasoline and E85 and the gaseous fuels were natural gas, biomethane and hythane which is a mixture of 90 percent methane with 10 percent hydrogen. Two separate tanks had been fitted in the car. A 29 liter tank for liquid fuels and a 98 liter tank for the gaseous fuels. The car user can fill any of these fuels based on cost and availability.
Advantages of MultiFuel Vehicles
Multi-fuel vehicles would help level the playing field betweengasoline vehicles which benefit from 100+ years of motoring infrastructure and the alternative fuels which are struggling to find acceptance. Once the car user has the confidence that he will be able to refill any fuel, he will naturally choose the most economic alternative. This will help contain petroleum usage and its prices and create a strong market pull for the alternative fuels.
What needs to be improved?
Besides the infrastructure issues of alternative fuels availability, there is the need to build operating experience with alternative fuels. In the past, there have been some issues with increased erosion of engine components with ethanol and also wax formation in ethanol blended fuels at low temperatures. Such technology issues can get solved only if multi-fuel vehicles come into the mainstream with the volumes that can attract attention and funding.
Pierre, SD—Gov. Dennis Daugaard says $950,000 in grants will be made available through the Governor’s Office of Economic Development to help pay for the installation of blender pumps and associated infrastructure at retail gas stations in South Dakota.
South Dakota produces about one billion gallons of ethanol a year, and blender pumps allow motorists to select their desired blends of gasoline and ethanol.
Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota.
During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative fund.
The new fuel dispensers, also known as flex pumps, will help promote value-added agriculture in South Dakota, Gov. Daugaard said.
“Ethanol production is a very effective way to increase the value of our agriculture base,” the Governor said.
“By making more ethanol blends available, we are improving producer opportunities, creating jobs, and stabilizing our domestic fuel supplies.”
South Dakota was the first state in the nation to allow ethanol blender pumps.
More than 100 pumps currently help support South Dakota’s 15 ethanol plants and nearly 900 South Dakotans directly employed by the industry.
“Ethanol use is a very simple and real way South Dakotans can decrease their dependence on foreign oil and promote a homegrown product,” saidDana Siefkes-Lewis, president of South Dakota Ethanol Producers Association.
“Through this grant program, we hope more gas stations make ethanol blends available to South Dakota consumers, in turn supporting South Dakota’s economy and those employed by the ethanol industry.”
Grant awards up to $25,000 are available for installation of a station’s first blender pump.
Grant awards up to $10,000 are available for installation of each additional pump.
The majority of the grants will be awarded on a first-come, first-served basis; the final 20 percent will be awarded competitively.
“This program is a great way to assist marketers in installing the additional equipment required to sell high blends of ethanol above E10 for use in flex-fuel vehicles,” said Dawna Leitzke of South Dakota Petroleum and Propane Marketers Association.
“These grants will help marketers who wish to diversify their products.”
GOED, in conjunction with South Dakota Ethanol Producers, the American Coalition for Ethanol, Growth Energy, South Dakota Petroleum and Propane Marketers Association, and the South Dakota Association of Cooperatives will hold informative meetings about the blender pump grant program in January.
Meeting times and locations will be announced at a later date.
GOED will begin accepting grant applications on Jan. 9, 2012.
SAINT PAUL, Minn., Dec. 15, 2011 /PRNewswire-USNewswire/ -- E85 is selling briskly in the upper Midwest, according to organizations that track the sales of the ethanol-based motor fuel. In the first eight months of the year, Minnesota E85 sales have increased by 26 percent, as retailers sold nearly 3 million gallons more of the cleaner-burning fuel than during the same period in 2010. Minnesota is not alone -- recent reports from Iowa and North Dakota show drivers in those states have also bought significantly more E85 this year than in 2010.
Minnesota also continues to make progress in its effort to reduce gasoline consumption in state-owned vehicles. Between July 2010 and June 2011, the state fleet used more than one million gallons of E85, setting a new record for a 12-month period. According to the Minnesota SmartFleet Committee, E85 now accounts for approximately 19 percent of their light-duty fuel purchases. State agencies used 736,885 gallons of E85 from January through September, up from the 724,827 gallons during the same period in 2010.
"I am pleased to report that many of our state agencies continue to lead by example, increasing their use of E85 fuel in state vehicles," said Tim Morse, chair of the SmartFleet Committee and director of Fleet and Surplus Services for the Minnesota Department of Administration. "This increase is all the more notable because many of the state's 3,000 flex fuel vehicles that are capable of using E85 were not driven during a 20-day state government shutdown in July."
"There is clearly a sustained demand for cleaner alternatives to petroleum-based fuels," said Kelly Marczak, director of the Clean Air Choice program of the American Lung Association in Minnesota and SmartFleet Committee member. "Using these fuels not only reduces lifecycle emissions and air pollution, they also help reduce our dependence on petroleum, a majority of which is imported into Minnesota from tar sand sources."
Minnesota has more than 360 E85 retail outlets, more than any other state. E85 can be used in flex fuel vehicles which can run on gasoline or any blend of ethanol up to 85 percent. Flex fuel capability now comes standard on more than 50 vehicle models and there are nearly a quarter million flex fuel vehicles registered in the state. For more information on E85 and flex fuel vehicles or to find an E85 retailer nearby, see www.CleanAirChoice.org.
Starting this week, E85 is now available to flex-fuel vehicle drivers in St. Petersburg, Fla. at Bollinger’s Gas Station. This is the first E85 station in the area.
The station, which specializes in auto repair, partnered with Protec Fuel, to install the E85. Protec, based in Florida, is a turnkey E85 company specializing in station conversions and fuel distribution. Bollinger’s offers three types of fuel including gasoline, diesel and E85. Bollinger’s also offers conversions for gas-engine vehicles to become flex-fuel vehicles.
“It just made sense to offer a product that’s good for the environment and the U.S. economy and at the same time help my environmentally-conscious customers,” said Ted Bollinger, owner.
NEW ORLEANS, December 14, 2011 – Agriculture Secretary Tom Vilsack today announced loans and grants for agricultural producers and rural small businesses across the country to implement renewable energy and energy efficiency measures in their operations. The funding is provided through USDA Rural Development's Rural Energy for America Program (REAP). Under Secretary for Rural Development Dallas Tonsager made the announcement on behalf of Secretary Vilsack while attending an energy efficiency conference here today.
"Stable energy costs create an environment for job growth in rural America," Vilsack said. "The Obama Administration is helping agricultural producers and business owners reduce their energy costs and consumption – and by doing so is helping preserve our natural resources, protect the environment and strengthen the bottom line for businesses, ranchers and farm operations."
Collectively, these REAP-funded projects announced today, and those announced earlier by USDA are expected to lower energy usage by 2 billion kilowatts and prevent nearly 2 million metric tons of emissions from being released into the environment. Today's announcement concludes the REAP awards cycle for 2011. REAP, authorized through the 2008 Farm Bill, provides loans and grants for farmers, ranchers and rural small business owners to purchase and install renewable energy systems and make energy-efficiency improvements. These federal dollars are leveraged with other funding sources for the projects.
Tonsager said that in Fiscal Year 2011, USDA Rural Development provided through the REAP program a total of $23.2 million for energy efficiency projects, $20.9 million for biodigesters, $20.3 million for solar energy projects, $8.2 million for hydroelectric systems, $7 million for biomass energy projects, $4.28 million for flexible fuel pump projects, $3.9 million for wind energy projects, $1.4 million for geothermal installations.
Improving Energy Efficiency
One recipient announced today, Wilford J. Hayden in Lowell, Ind., is expected to save almost 1.4 million kilowatt hours when he replaces a grain dryer with a more efficient one. K and K Farms, Inc., in Stuart, Iowa, has been selected to receive a $10,737 grant to help purchase a new grain drying system that is expected to reduce annual energy costs by more than 57 percent.
Under Secretary Tonsager noted that the nearby Port of New Orleans moves more than half of the nation's grain exports, and that the more fuel efficient grain dryers that USDA is helping to fund contributes to that success. "The Port of New Orleans is considered America's gateway to the global market. It helped American farm exports reach a record high of $137.4 billion for fiscal year 2011 -- supporting 1.15 million jobs, and creating a record trade surplus of $42.9 billion," said Tonsager. "As Secretary Vilsack stated last month, strong export performance means higher incomes for farmers and ranchers, more opportunities for small business owners and jobs for folks who package, ship and market agricultural products."
With today's announcement, USDA Rural Development is funding more than 280 projects to help reduce energy costs. In all, the department funded more than 1,100 energy efficiency projects in fiscal year 2011, including improvements in aquaculture, poultry lighting and ventilation, irrigation system upgrades, maple syrup production efficiency, small business heating and cooling, rural grocery cooler replacement and others.
Flexible Fuel Pumps
USDA is providing support for 12 flexible fuel pump projects in eight states as part of today's announcement, bringing the number of flex-fuel projects funded to 65 in FY 2011, with 266 new pumps being installed in 30 states. Installing flexible fuel pumps encourages the use of biofuels and supports our nation's growing clean-energy economy. Flexible fuel pumps are specifically designed to dispense ethanol-gasoline blends that contain up to 85 percent ethanol and 15 percent gasoline. In addition, they may also dispense mid-level blends, such as E15 and E30.
For example, Mid-Iowa Cooperative in Beaman, Iowa, has been selected for a $94,211 grant to purchase and install six flexible fuel pumps. The following is a list of additional flexible fuel projects announced today that USDA is funding:
Iowa
Freedom Rock Renewable Fuels, LLC #1 – $49,925 grant to install two flexible fuel pumps
Freedom Rock Renewable Fuels, LLC #2 – $49,578 grant to install a flexible fuel pump
Heller Implement, Inc. – $36,001 grant to install three flexible fuel pumps and a new underground biofuel storage tank
Marcus Junction, LLC – $7,500 grant to install a blender fuel pump
Mid-Iowa Cooperative – $94,211 grant to buy and install six flexible fuel pumps
Kansas
CC of Hays, Inc. – $35,925 grant to install a flexible fuel pump, underground biofuel storage tank and fuel lines
Michigan
Zeeland Fuel Services, LLC – $500,000 grant to install seven flexible fuel dispensers, several underground biofuel storage tanks and associated infrastructure at a new fuel station that will sell ethanol and biodiesel fuel
Minnesota
Farmers Cooperative Oil Company – $68,205 grant to install eight flexible fuel blender pumps at two locations
Nebraska
NCP Fuel Services, LLC – $418,250 grant to construct a new fueling station with seven flexible fuel stations that will offer ethanol and biodiesel blends
North Dakota
Farmers Union Oil Company of Velva – $159,739 grant to purchase and install 13 flexible fuel dispensers
South Dakota
Stone Oil Company, Inc. – $33,307 grant to install flexible fuel pumps
Utah
CP Fuels, LLC – $500,000 grant to construct and install five flexible fuel pumps
USDA Rural Development also is funding several other types of renewable energy and energy efficiency projects through the REAP program. For example, Kyle Van Dyke has been selected to receive a grant to help replace a conventional heating system for his Edgerton, Minn.-based business with a geothermal system that is expected to reduce annual energy costs by nearly $3,900. Ken's Greenhouses, Inc., Kalamazoo, Mich., has been selected to receive a grant to install energy efficient greenhouse curtains. With its grant award, Wildflower Farms, Inc. in Clearwater, Neb., expects to save 406.8 million BTUs annually by converting a diesel irrigation motor to an electric motor.
Funding of each REAP award is contingent upon the recipient meeting the conditions of the grant or loan agreement. Grants can finance up to 25 percent of a project's cost, not to exceed $500,000 for renewable energy, $250,000 for energy efficiency. A complete REAP recipients announced today, excluding the flex-fuel projects listed above, is available by clicking here.
Since taking office, President Obama's Administration has taken historic steps to improve the lives of rural Americans, put people back to work and build thriving economies in rural communities. From proposing the American Jobs Act to establishing the first-ever White House Rural Council – chaired by Agriculture Secretary Tom Vilsack – the President wants the federal government to be the best possible partner for rural businesses, entrepreneurs and people who want to live, work and raise their families in rural communities.
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $155 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. More information about USDA Rural Development can be found at www.rurdev.usda.gov.
BISMARCK, N.D. — December 14, 2011 — Jasper Schneider, USDA Rural Development state director, announced today that more than $460,000 in grants have been awarded to nine recipients to implement renewable energy and energy efficiency measures in their operations. The funding is provided through USDA Rural Development’s Rural Energy for America Program (REAP).
“These investments will help reduce energy costs and consumption while helping preserve our natural resources and protect the environment,” Schneider said. “Business operations that become more energy efficient will increase profitability and create new opportunities for economic growth.”
The energy program, REAP, seeks to provide funding to projects that incorporate energy-saving practices into business operations. One recipient will use the grant to replace conventional gasoline pumps with blender pumps to offer customers a variety of ethanol fuel choices. The other grants will assist in replacing old, inefficient grain dryers which will provide energy and cost savings while preserving higher yields. The following is a breakdown of the award recipients:
Farmers Union Oil Company of Velva (Velva, N.D.): $159,739 grant. The grant will assist with the purchase and installation of 13 flexible fuel pumps. Four new blender dispensers will be installed at the Farmers Union Oil Company location in Drake. There will be nine blender dispensers and tanks installed at the Velva retail location. The company estimates that the blender dispensers will increase the demand for ethanol and diesel in their service area by 10 percent.
Arnold Anderson (Hankinson, N.D.): $36,212 grant. The grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 37 percent.
Timothy Viland (Wahpeton, N.D.): $34,102 grant. The grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 36 percent.
Wayne Satrom (West Fargo, N.D.): $34,375 grant. The grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 43 percent.
Matthew Legge (Spiritwood, N.D.): $46,722 grant. The grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 43 percent.
Michael Kohler (Valley City, N.D.): $50,000 grant. The grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 39 percent.
Spencer Deering (Fullerton, N.D.): $25,250 grant. This grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 43 percent.
Jeff Wurzer (Fingal, N.D.): $38,304 grant. This grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 52 percent.
Kent Sortland (Jamestown, N.D.): $35,554 grant. This grant will assist in the replacement of an existing grain dryer with a new energy efficient dryer. This project will produce an annual energy savings of 48 percent.
REAP, authorized through the 2008 Farm Bill, provides loans and grants for farmers, ranchers and rural small business owners to purchase and install renewable energy systems, make energy-efficiency improvements, conduct feasibility studies and energy audits. These federal dollars are leveraged with other funding sources for the projects. More information on the REAP program is at:http://www.rurdev.usda.gov/BCP_ReapResEei.html.
New Orleans—Agriculture Secretary Tom Vilsack announced Dec. 14 loans and grants for agricultural producers and rural small businesses across the country to implement renewable energy and energy efficiency measures in their operations.
Under Secretary for Rural Development Dallas Tonsager made the announcement on behalf of Secretary Vilsack while attending an energy efficiency conference here today.
"Stable energy costs create an environment for job growth in rural America," Vilsack said.
"The Obama Administration is helping agricultural producers and business owners reduce their energy costs and consumption – and by doing so is helping preserve our natural resources, protect the environment and strengthen the bottom line for businesses, ranchers and farm operations."
Collectively, these REAP-funded projects announced today, and those announced earlier by USDA are expected to lower energy usage by 2 billion kilowatts and prevent nearly 2 million metric tons of emissions from being released into the environment. Today's announcement concludes the REAP awards cycle for 2011.
REAP, authorized through the 2008 Farm Bill, provides loans and grants for farmers, ranchers and rural small business owners to purchase and install renewable energy systems and make energy-efficiency improvements.
These federal dollars are leveraged with other funding sources for the projects.
Tonsager said that in Fiscal Year 2011, USDA Rural Development provided through the REAP program a total of $23.2 million for energy efficiency projects, $20.9 million for biodigesters, $20.3 million for solar energy projects, $8.2 million for hydroelectric systems, $7 million for biomass energy projects, $4.28 million for flexible fuel pump projects, $3.9 million for wind energy projects, $1.4 million for geothermal installations.
Improving Energy Efficiency
One recipient announced today, Wilford J. Hayden in Lowell, Ind., is expected to save almost 1.4 million kilowatt hours when he replaces a grain dryer with a more efficient one.
K and K Farms, Inc., in Stuart, Iowa, has been selected to receive a $10,737 grant to help purchase a new grain drying system that is expected to reduce annual energy costs by more than 57 percent.
Under Secretary Tonsager noted that the nearby Port of New Orleans moves more than half of the nation's grain exports, and that the more fuel efficient grain dryers that USDA is helping to fund contributes to that success.
"The Port of New Orleans is considered America's gateway to the global market.
"It helped American farm exports reach a record high of $137.4 billion for fiscal year 2011 -- supporting 1.15 million jobs, and creating a record trade surplus of $42.9 billion," said Tonsager.
"As Secretary Vilsack stated last month, strong export performance means higher incomes for farmers and ranchers, more opportunities for small business owners and jobs for folks who package, ship and market agricultural products."
With today's announcement, USDA Rural Development is funding more than 280 projects to help reduce energy costs.
In all, the department funded more than 1,100 energy efficiency projects in fiscal year 2011, including improvements in aquaculture, poultry lighting and ventilation, irrigation system upgrades, maple syrup production efficiency, small business heating and cooling, rural grocery cooler replacement and others.
Flexible Fuel Pumps
USDA is providing support for 12 flexible fuel pump projects in eight states as part of today's announcement, bringing the number of flex-fuel projects funded to 65 in FY 2011, with 266 new pumps being installed in 30 states.
Installing flexible fuel pumps encourages the use of biofuels and supports our nation's growing clean-energy economy.
Flexible fuel pumps are specifically designed to dispense ethanol-gasoline blends that contain up to 85 percent ethanol and 15 percent gasoline.
In addition, they may also dispense mid-level blends, such as E15 and E30.
For example, Mid-Iowa Cooperative in Beaman, Iowa, has been selected for a $94,211 grant to purchase and install six flexible fuel pumps.
During my conversation with Mike O'Brien, the new Growth Energy vice president of market development (See Meeting a Flex Fuel Challenge) we got into a conversation about building demand. As he noted more 80% of fuel is sold through convenience stores these days and more than half of those are single-store owners. So where do you come in?
For a smaller store owner to commit to any investment they need to know there's demand for a new product. The basics you can find at any convenience store are increasing. Recently there were press reports noting that fast-food operations were facing increasing competition from convenience foods at these smaller retailers. The rise in popularity of pizza, hot dogs and other items you can get quick at the local store make a difference in their per-store incomes.
Gasoline, however, is not in the top five money makers for those c-stores. So how do you convenience a single-store owner in a small town that a flex fuel pump might be a good investment? How about driving in with a your new Ford Super-Duty F-350 pickup with its flex fuel engine (the 6.2 liter engine if flex fuel capable) or your Chevy Silverado (three engine options are flex-fuel capable the 4.8-, 5.3- and 6.2-liter models) and asking for some flex fuel options?
O'Brien notes that knowing there would be local demand for intermediate fuel blends - rather than the E-10 or E85-only choices would be good for farmers with their bigger trucks, and the convenience store owner would know the pump would get used. If it meant the local store would get more business from local farmers, which boosts the chances of getting flex-fuel pumps in more locations.
The beauty of capitalism is that the push-pull pressures of the marketplace really work. Customers who start asking for a service or a product get the attention of retailers looking for ways to add customers and business. Farmers pushing for flex fuel options at local retailers would create a pull for those pumps into the stores.
Just something to think about as the ethanol industry goes through an important change at the end of 2011. Creating local demand in your nearest town could make a difference.
The Petroleum Equipment Institute has announced it has joined the Coalition for E85, a group of retailers, producers, equipment manufacturers and other supporters of E85 fuel campaigning to protect the investments of 2,500 small businesses and stop a multimillion-dollar tax hike on consumers.
“Fuel marketers, equipment manufacturers and the motoring public have invested a significant amount of money in building the E85 infrastructure and flex-fueled vehicles,” said Robert Renkes, executive vice president of PEI. “We must not abandon E85 this close to self-sustainability.”
According to the U.S. Dept. of Energy’s Energy Information Administration, E85 Flexible Fuel Vehicles represent approximately 98 percent of all the alternative fuel vehicles operating on the nation’s highways. “E85 represents a form of liquid transportation fuel that is growing in use and has an infrastructure investment cost similar to unleaded gasoline,” said Renkes. “Following the lead of the Congress and several recent presidents, many of our members have committed to the production of E85 fueling equipment, and we call on the Congress and Obama Administration to maintain the small incentives provided to advance the sale of E85.”
Currently, other alternative fuels, such as compressed natural gas, propane and hydrogen, receive a 50 cent-per-gallon tax credit as part of the Alternative Fuel Credit. The coalition believes E85 should be included in this group. For more information, including a list of member organizations, go to www.CoalitionForE85.org.
BISMARCK, N.D., Dec. 7, 2011 -- /PRNewswire-USNewswire/ -- Annual statewide sales of E85, a cleaner-burning fuel consisting primarily of ethanol, surpassed the 1 million gallon mark in North Dakota in September. Approximately 660,000 gallons of E85 were sold in North Dakota in 2010, up from 275,000 gallons in 2009. The state now has more than 70 retail outlets for E85 and each month, sales of E85 in 2011 have exceeded that same month's 2010 sales.
"This is an important achievement the entire state can celebrate," said Joey Roberson-Kitzman, coordinator of the North Dakota Clean Cities program. "As the number of stations has grown and more people have become aware of the benefits of using E85, we have seen steady growth in sales. It proves that people will choose a cleaner-burning fuel when given the opportunity."
E85 can only be used in "flex fuel vehicles" (FFVs) that are built to use either E85, gasoline, or other high-ethanol blends. There are more than 41,000 FFVs registered in North Dakota. The American Lung Association in North Dakota recognizes E85 as a Clean Air Choice that flex fuel vehicle drivers can make today to reduce their impact on air quality and lung health.
For more information on E85, where to buy the fuel or to see if your vehicle can use E85, visit the American Lung Association in North Dakota's Clean Air Choice website, CleanAirChoice.org.
Ford Motor Company said it plans to grow its commercial vehicle lineup in 2012 with offerings targeting the 'green' market, as it seeks to achieve a 30 percent reduction in carbon dioxide emissions from its vehicles in the United States and Europe by 2020.
Ford said it plans to offer a broad range of fuel-saving and alternative fuel options for all its commercial vehicles, including commercial trucks, with half being available with flex fuel, biodiesel, compressed natural gas, liquid propane gas, hybrid and battery electric powertrains direct from Ford or from certified partners.
Citing Polk registration data in the United States, Ford said it sells six of the top 10 commercial vehicles in the country. Vehicles Ford intends to market next year include several pickup trucks, light- to medium-duty vans and a vehicle designed for police use. These include:
the Ford F-150, a light-duty pickup truck with Fords' EcoBoost engines capable of a fuel-efficiency of 22 miles per gallon on the highway. The vehicle is available with engines that are flex fuel capable;
E-85-capable Police Interceptor sedan and utility versions with EcoBoost technology;
the Ford F-Series Super Duty pickup truck and chassis cab line up with diesel, biodiesel B-20 and C.N.G./L.P.G. capabilities;
the F-650 and the F-750 medium duty trucks with biodiesel or C.N.G./L.P.G. option;
Transit Connect small van available with C.N.G. or battery electric drive system for 80 miles of zero emission driving; and
the E-Series full-size vans and cutaway with options for flex fuel, C.N.G./L.P.G. or hybrid system.
The price of a gallon of gasoline will rise by about 4 cents per gallon after the 45-cent per gallon tax credit for ethanol blending ends Jan. 1, chief executive officer Jeff Broin of Poet said Tuesday.
Broin noted that the presence of cheaper ethanol blended with unleaded gasoline lowers the per pump cost to t he consumer by 17 cents per gallon. this week Iowa’s average price for unleaded gasoline has been $3.18 per gallon, but most convenience stores in the Des Moines area have sold for $2.99 per gallon since last week.
The higher 85 percent E85 ethanol, which has enjoyed a record year for sales in Iowa, will rise by about 40 cents per gallon, Broin said. E85 has tended to sell as much as 75 cents per gallon under the price of the ten percent ethanol blend.
“E85 will be impacted more by the loss of the tax credit,” Broin said.
Broin said that the ethanol industry now is “mature,” and will be able to withstand the loss of the tax credit. Broin and most of the ethanol industry bowed to political realities and put up little resistance to what was seen as an inevitable loss of the three-decades old credit that went to refiners, pipelines and wholesalers, not ethanol producers.
But Broin said “we can’t afford to go backward on the Renewable Fuel Standard,” which in 2012 will mandate the use of more than 13 billion gallons, or about ten percent of total gasoline use in the U.S.
Broin noted that “ethanol still has to go through our competitors in the oil industry, and he suggested that industry has been behind efforts to not only soften the Renewable Fuel Standard mandate but also hobble efforts to get government help for funding for new blender pumps that would give motorists choice between the ten percent blend now used and the 15 percent blend approved by the federal government late last year.
On the futures markets, the wholesale price of ethanol has fallen from $2.50 or more for delivery in December to $2.17 for January delivery, after the tax credit expires.
Ethanol producers anticipate that the federal mandate, plus the discount of ethanol to wholesale unleaded gasoline that sells for $2.64 per gallon this week for the January delivery, will continue to provide incentive for oil companies and blenders to continue to buy ethanol.
Broin was asked about the so-called “blend wall” that caps the ethanol mandate at 16 billion gallons, not far above the 14 billion gallons expected to be produced next year. But he said “there’s no law that says more than 16 billion gallons can’t be produced in the U.S.”
Iowa is the nation’s leading producer of ethanol, with about 3.7 billion gallons produced at 41 plants in the state. Ethanol production consumes about 60 percent of Iowa’s corn crop.
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JOHNSTON, Iowa — The Petroleum Marketers & Convenience Stores of Iowa (PMCI) and the Iowa Renewable Fuels Association (IRFA) have formed a renewable fuels partnership. Representatives of both groups will serve in an advisory capacity to exchange ideas on advancing the availability and use of renewable fuels in Iowa. The two organizations will focus on bringing more renewable fuels to Iowa motorists, addressing the needs of the marketplace and consumer education.
"We're pleased to be part of an alliance that brings together fuel marketers and producers to work on key issues that will benefit both industries," said Dawn Carlson, President of PMCI. "Working collectively, we can bolster the distribution network for domestically-produced fuels and strengthen the local economy."
Lucy Norton, IRFA managing director, added, "IRFA's ethanol and biodiesel producer members look forward to joining forces with the petroleum marketers' network to bring more ethanol blend fuel options to Iowa motorists. Cooperatively, we'll bring a strong education program to consumers on the benefits of having a variety of renewable fuels to meet their needs and their wallets."
IRFA was formed in 2002 to represent the state's liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.
PMCI is a nonprofit state trade association that has been serving the needs of independent petroleum distributors, gasoline retailers and convenience store owners since 1937.
We're taking a different approach in Tech Tuesday this week — looking at the challenges of promoting an existing technology in new ways. The addition of ethanol to gasoline isn't a new idea. For the past decade a growing number of states mandate the biofuel as an oxygenating additive for fuels to reduce air pollution, ethanol as a fuel additive dates back to the birth of the automobile industry, with the 113-octane fuel being used as an anti-knock ingredient until the 1930s, when Standard Oil and others replaced grain ethanol with lead in gasoline.
A known toxin, lead was eventually banned from gasoline, and ethanol has started making a comeback. There is plenty of potential for ethanol out there as an alternative fuel. The trick is to push the amount used in every gallon a customer pumps.
Growth Energy, an advocacy organization, made up of ethanol producers and allied industries, is pushing ethanol to the next level. The organization is behind the move to raise the base ethanol cap from 10% to 15% in fuel mixes, and a potent force behind the E85 movement. Last week, the organization made an investment in promoting a key technology for boost the ethanol content in the fuel consumers use — the flex fuel pump.
The organization hired Mike O'Brien, an ag industry marketing executive whose career includes work at Dow AgroSciences, Agrevo (used to be Hoechst and now part of Bayer) and he was part of the innovative partnership that brought the corn-based NatureWorks product to the consumer market. He joins the Growth Energy team as vice president of market development.
Today, Mike (a long-time friend) is pushing flex fuel pumps, which many farmers may know as blender pumps. As the new vice president of market development for Growth Energy, O'Brien's job is to go directly to retailers and discuss the options available for Flex Fuel pumps.
The challenge
O'Brien lays out the challenge of pushing the new-tech fuel pumps to the market. "There are about 159,000 sites in the United States that sell fuel," he explains. "And about 80% of those are convenience store operations." He sees the trend continuing with more gasoline going through multi-product convenience stores.
Mike O'Brien, the new vice president of market development at Growth Energy, has a key responsibility: Moving flex fuel pumps into the market. It's an opportunity he sees for the ethanol industry.
However, a deeper look at what industry experts call the C-Store market shows that 57% of the businesses are one-store owners. "And another 5.3% of the C-Store owners have 2 to 10 stores," O'Brien points out. "In essence, more than 60% of convenience stores are owned by individuals who, like farmers, are working to make a living."
While a growing market, it's also in incredibly fragmented market. And while O'Brien is going to be busy promoting flex fuel pumps to retailers, he's not going to visit nearly 80,000 individual retailers. The key is to promote the concept to some bigger players and work in other ways to push to the broader market.
"These pumps make sense, with the already large installed base of flex fuel vehicles," he notes. And pushing the flex fuel pumps is the next logical step for the ethanol industry.
At the end of 2011, the Volumetric Ethanol Excise Tax Credit is fading away. This is the incentive payment oil companies got to blend ethanol with gasoline. While government mandates provide an underlying base of ethanol use in the future, the tax credit has helped push the volume up. Yet the ethanol industry is on record saying it's time for a change and the focus will shift toward market development. That's where flex fuel pumps come in.
Beyond the two-type choice
Today a flex-fuel vehicle owner has basically two choices - regular gasoline with 10% ethanol and E85 with 85% ethanol. It's a demonstrated fact that you'll get less miles per gallon with E85, but O'Brien notes there's a "sweet spot" for that gasoline-ethanol blend that flex fuel vehicles can use offering both good mileage and a savings over conventional gasoline.
"Mid-level blends like E30 will offer a car owner savings on fuel, but not a hit on fuel mileage," O'Brien notes. With a flex fuel pump, the owner can offer that third blend choice, which would provide a discount on a tank of fuel, with no discount in distance per fill up.
For the convenience store owner, anything that gets a customer to choose one business over another can have value and if the lower-price point mid-level blend shows up on the convenience store fuel list lower than regular gas - it can bring more people to an owner's store.
Looking deeper into store ownership stats, O'Brien explains that convenience store operations have five top income earners - cigarettes, beverages, food (which is increasing fast), beer and other tobacco products. "Gas doesn't make the top of the list for income, it's a traffic generator to get people in to buy these other items," he notes. "You have to be in the gasoline business to run a convenience store, but it's not your priority income earner."
That's both the challenge and the opportunity. If gasoline is just a cash stream, how much does the owner want to invest in a new pump? However, if that new pump can bring more people into the store, that's another matter.
And that's O'Brien's challenge. He'd been in the job a few hours when we talked with him, but he's excited about the opportunity flex fuel pumps offer innovative convenience store owners for the future. Next week we'll take a look at how farmers can create demand for flex fuel pumps across the country.
If you don't know if you own a flex fuel vehicle - the installed base of cars and trucks is estimated above 8.5 million in the United States today - check out the flex fuel vehicle list.
This fall, the department added energy conservation to the list of duties.
In October, the department rolled out two new Crown Victorias to add to its fleet of patrol cars. Each year the department retires two cars and rolls out two replacements.
But these new patrol cars are different than the rest.
"This year with the Crown Vics we had one equipped with flex fuel" so it can use E85 fuel, which is mostly ethanol, said Police Chief Bill Vaughn. "We're going to see if the cost benefit is there."
E85 fuel is comprised of 85 percent corn ethanol and 15 percent gasoline.
According to the Iowa Corn Promotion Board, a standard vehicle from the department adds 10,000 pounds of greenhouse gasses to the air annually. With the use of E85, those emissions can be reduced to 3,000 pounds.
The department has taken other green measures with their cars, too.
After some research, the department decided to equip both cars with high- performance, deep-charge batteries.
"In the patrol cars we have items that cause a drain," Vaughn said. "The radio, computer, flashlight charger, that equipment takes a current from the battery. The new battery is intended to provide a current for up to an hour" without running the car’s engine.
Simply turning off the equipment like the computer may seem like a simple solution, but it's not always plausible.
"That means you have to turn them on, that takes time," Vaughn said. "That can adversely affect the response time. We have to be able to go. If you leave them on, then you'll need a jump start to go."
The new batteries allow officers to stop for coffee breaks, lunch or a run to the station without having to turn down the equipment.
Vaughn said that cars are frequently left to idle for a number of reason, including the weather conditions.
"There is the assumption by some citizens when they see a car idling that it's being wasteful," he said. "We have to keep the battery running when it's 85 degrees-plus or freezing and below because the temperatures in a car are extreme and that can affect the equipment."
Agriculture Secretary Tom Vilsack said today that the decision of Senate Agriculture Committee Chairman Debbie Stabenow, D-Mich., and House Agriculture Committee Chairman Frank Lucas, R-Okla., to exclude construction of blender pumps from USDA renewable fuel activities in the draft of the proposed farm bill means that he has to work harder to convince Congress to allow it.
A leaked memo on the proposed farm bill that Stabenow gave to the now-failed supercommittee on deficit reduction said that she and Lucas would favor an extension of the renewable fuel assistance program called REAP, but would not allow the program to be used to help gas stations and other fuel facilities construct blender pumps to make ethanol and other renewable fuels available.
USDA has a small program to subsidize blender pump construction, but ethanol industry groups say the lack of blender pumps has become their biggest constraint on expansion.
The proposed ban on pump construction “means I’ve got more work to do,” Vilsack told The Hagstrom Report after he gave a speech to a Commercial Aviation Alternative Fuels Initiative event held at Georgetown University.
Ag Secretary Tom Vilsack
“There are other ways to help, but REAP is the easiest way,” Vilsack added. “The biofuels challenge is as much convenience of supply as capacity to produce.”
Vilsack urged the aviation and alternative fuel executives to stand up for renewable fuels programs during the congressional budget and appropriations debates. He repeated themes that he has used in previous speeches that not all experiments will work and that the country is becoming too risk averse.
“This country has always succeeded when we’re fearless,” Vilsack said, urging members of the audience “to encourage a continuation of the entrepreneurial spirit not just in business but in government.”
Asked in the interview whether he was referring to the reaction to Solyndra, the troubled solar company that received government support, Vilsack said he was speaking “generally” and that his statement was also intended as “a message to people at USDA — think creatively, take risks.”
Noting that computer entrepeneurs Steve Jobs and Bill Gates had failures as well as successes, Vilsack said, “It’s so easy to become critical. You become risk averse.”
Emphasizing that the farm bill debate is likely to be “elaborate” and lengthy, Vilsack specifically asked the group to encourage support for energy programs in the farm bill, saying USDA “would like to do a bit more” in energy development.
In the question and answer session, Vilsack said he is not sure when he will see results from the feedstock research initiative grants USDA has made. Getting results will take time, he said, because it involves constructing biorefineries.
Vilsack said USDA will do all it can to make advanced biofuels competitively priced by trying to help companies reduce feedstock input costs and expenses. But he added that the industry “won’t see” the tax breaks that the ethanol industry got.
Vilsack, who just returned from a trip to Vietnam and China, was asked about U.S. assistance for renewable fuels production in other countries.
He said the United States needs to help developing countries increase food production, citing the need to increase it 70 percent by 2050. China, he noted, has 60 million farmers, many of them with only two, three or four acres and cannot produce enough to feed itself.
Only 230,000 farmers produce 85 percent of the U.S. food supply, he said, adding that when world food production increases, crop residues will be available to be used for renewable energy production.
LINCOLN, Neb. — A new USDA grant will be used to promote flex fuel vehicles, flex fuel pumps and driver education. The grant was announced at a meeting of the Nebraska Ethanol Board.
The Nebraska Ethanol Industry Coalition (NEIC), a non-profit educational organization, will be working with the FlexFuel Vehicle Awareness Campaign to institute a wide range of activities aimed at increasing ethanol use in order to meet the national renewable fuel standard. Project partners include the Nebraska Ethanol Board, the Nebraska Corn Board, the Clean Fuels Foundation, ICM, Poet Ethanol Products, Monsanto, Green Plains Renewable Energy, and Phibro Ethanol Performance Group.
While the FFV Awareness Campaign is an ongoing national effort, this project will concentrate on six states: Nebraska, Kansas, Iowa, Maryland, Georgia and Florida. Key elements of the project include working with state motor vehicle departments to inform drivers that they may already have a flex fuel vehicle and how FFV drivers can easily find fueling sites offering high-level ethanol blends. The campaign will also provide an opportunity to educate all drivers on ethanol with respect to performance, emissions, and advantages it provides over gasoline and imported oil.
Todd Sneller, chairman of the Clean Fuels Development Coalition and administrator of the Nebraska Ethanol Board, said the project reflects a unique "virtual pipeline" that targets production states (Nebraska, Iowa and Kansas) and links them with key markets (Maryland, Georgia, and Florida). "Clearly we are near the saturation point in terms of ethanol blends in conventional vehicles," Sneller said. "To maintain the renewable fuel standard and move to the next level we need to take advantage of the 9 million FFVs on the road today that can use high level ethanol blends, ranging up to E85. For that to happen drivers need to know their vehicles have this capability and where to find the fuel."
According to project participants, consumers can check their owners' manual, gas caps, and check their vehicle identification numbers at several websites to find out if they have a FFV. Even for those who do not, the inquiry often leads to interest in the subject and an increase in FFV inquiries to auto dealers. FFV Awareness Campaign officials are currently in discussions with several state motor vehicle administrators. They say that reaching drivers through current state communication channels like emission notices and registration renewals would be an extremely efficient means of reaching both current and prospective FFV owners.
The USDA grant was issued under the Rural Business Opportunity Grant program. The project will also focus on rural areas that can adopt ethanol as a business opportunity through flex fuel pumps and retail outlets.
WASHINGTON, D.C. -- Two months after the Coalition for E85 formed, the Society of Independent Gasoline Marketers of America (SIGMA) is joining the group's ranks.
A group of retailers, producers and equipment manufacturers -- among others -- formed the Coalition for E85 in October. The campaign looks to protect the 2,500 small businesses that have invested in ethanol fuel and halt a multimillion-dollar tax hike on consumers, as CSNews Online previously reported.
"Many of our members have made a significant investment to bring convenient access to E85 to our customers and they've responded by filling up tank after tank with E85," said Tim Columbus, general counsel for SIGMA. "SIGMA believes that we cannot abandon E85 this close to self-sustainability, especially when everyone from auto makers, to retailers and consumers are supporting this domestically produced fuel. We're joining the coalition to let our government leaders hear why providing access to American-made fuels is critical to building our nation's economy."
Congress already designated E85 as an alternative fuel in the Energy Policy Act of 1992. However, E85 was not included in the tax credit commonly used for other alternative fuels (the Alternative Fuel Credit) to avoid any instance when ethanol would receive both that credit and the Volumetric Ethanol Excise Tax Credit, according to the coalition's website.
"E85 as an alternative fuel is defined everywhere in the U.S. code, except for the Internal Revenue code," tax code specialist Jeff Trinca explained in a statement on the North America Equipment Dealers Association website. It has not been included within the tax code in the past in order to avoid "double dipping" in tax credits because of the existing blenders' credit, the statement noted.
With the expiration of the blenders' tax credit coming at the end of this year, the coalition "would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there's a level playing field," said Trinca, who works with the coalition. He noted that the coalition is only looking for a five-year bridge to get the infrastructure in to be competitive with gasoline. He said efforts are underway to get a bill introduced in Congress to address the issue before the end of the year.
Other members of the Coalition for E85 include Propel Fuels, Protec, Clean Fuels Development Coalition, Pearson Fuels, AMERigreen, Petro Serve USA and the Petroleum Marketers Association of America.
As the semester comes to an end and the holidays approach, many students will be driving miles to return home for the break.
“Going home has just become more expensive,” Elise Baskett, senior in psychology, said. “I’ve kind of accepted the fact that I have to do a lot of budgeting just to get home to Nashville.”
An increase in gas is a ramification of many factors, including the current American economy. Home-grown alternative fuel sources have been proposed as possible aids to the current economy and environmental problem.
“The biggest advantage of alternative fuel comes down to home-grown fuel sources,” Sam Jackson Ph.D., vice president of Feedstock Operations for Genera Energy, said.
Genera Energy and UT have been working together to create alternative fuels made from switchgrass, which can be grown on land that is not suitable for other crop production.
“Ultimately, switchgrass and other plant materials are simply sources of sugars to manufacture ethanol,” Jackson said. “These sugars come from cellulose, which is found in the walls of plant cells and is one of the most common organic compounds on earth.”
Most of the ethanol fuel created today comes from corn because it is easier to break down the sugar in the kernels. One disadvantage, however, is that a majority of the product is not used so a lot of biomass is wasted. In the production of switchgrass, the entire plant is used as a source for sugars found in cellulose instead of just one part, such as corn kernels.
“By using cellulose to create ethanol, a wide variety of new sources of sugar are available for ethanol production, and producers do not have to rely on a specific grain commodity (corn),” Jackson said.
Jackson believes such a resource for alternative fuel will help provide energy security, which he feels is extremely valuable.
“We can increase our energy independence and security while contributing to rural economic development in the U.S. by growing biomass feedstocks for fuel, converting them and using them in local communities across the nation,” Jackson said.
There are some disadvantages to switchgrass alternative fuels, which Jackson feels are due to consumer education and acceptance.
“Ultimately, we have to more effectively educate the general public about biofuels and their positive impacts for there to be widespread adoption,” Jackson said. “We can do better with our engine technologies and automotive industry. These changes will take time, money and the simple will to change. Change is never easy and I see that as one of our biggest challenges.”
Much of the Southeast, including Knoxville, has shown an increase in the availability of E-85, the term for alternative fuels produced by companies like Genera.
“The Knoxville area has three E-85 stations available to the public,” Jackson said.
Even greater than the increase in the use of E-85 is the availability of flexfuel vehicles that can use gasoline or a higher blend of ethanol.
“Lots of cars sold today can use anything from 100 percent gasoline to E-85,” Jackson said. “This has been a big improvement and will help increase the use of alternative fuels.”
Currently the U.S. is using about 14 to 15 billion gallons of ethanol per year. Although this is a large number, Jackson and many other alternative fuel supporters feel this is a long way to go before it trumps the 140 billion gallons of gasoline consumed per year.
Thorntons is celebrating the grand re-opening of its store location at 190 East Lake Street, Bloomingdale, Ill., on Tuesday, Nov. 29, 2011.
Thorntons currently operates 162 stores throughout Indiana, Kentucky, Illinois, Tennessee and Ohio.
Customers will experience a newly designed store, with a clean and friendly environment. Thorntons will introduce high quality foods such as fresh sandwiches, salads, and fruits; plus enhanced offerings of hot beverages, particularly Thorntons premium-blend coffees, and fountain drinks. A multitude of customer-appreciation promotions will occur during the opening days and weeks of the celebration, highlighted by free coffee and fountain beverages for everyone, as well as weekly door buster giveaways.
Customers can enjoy the everyday specialties they’ve come to expect from Thorntons. ‘Hot off the grill’ convenience food items, hot, cold and frozen beverages made with 100% filtered water, exceptional quality food, grocery items at economical prices, and as always, the most competitively-priced premium fuel available for any type of vehicle.
Additionally, Thorntons offers eco-friendly E85 flex fuel at this location. E85 flex fuel is a motor fuel blend of 85% ethanol and 15% gasoline, and is a completely renewable, domestic, environmentally friendly fuel. E85 flex fuel enhances the nation’s economy and energy independence, and creates little to no emissions at the tail pipe (which means cleaner air and a reduction in pollution).
Along with its plans for an expansion of E85 flex fuel, Thorntons continues to explore alternative fuel options, offering its customers the most affordable and environmentally efficient fuels for all of their driving needs.
The Society of Independent Gasoline Marketers of America has joined the Coalition for E85 in the effort to have 85 percent ethanol designated as an alternative fuel under the tax code. The recently-launched coalition is made up primarily of fuel retailers who are concerned about the future of E85 once the Volumetric Ethanol Excise Tax Credit, or blender’s credit, expires without renewal at the end of the year. Efforts are underway to get a bill introduced in Congress to address the issue before the end of the year.
Tax code specialist Jeff Trinca is working with the coalition. Trinca says E85 as an alternative fuel is defined everywhere in the U.S. code, except for the Internal Revenue code. It has not been included within the tax code in the past in order to avoid “double dipping” in tax credits because of the existing blender’s credit.
Trinca says – with the expiration of the blenders’ tax credit at the end of this year, the coalition – would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there’s a level playing field. He noted that the coalition is only looking for a five year bridge to get the infrastructure in to be competitive with gasoline.
Source: NAFB News Service
JERSEY CITY, N.J. -- It's the day that the retail industry prepares for all year long, and the same one consumers can hardly wait for: Black Friday. As ads touting Black Friday specials take over newspapers, television stations and radio broadcasts, there is no doubt that the day after Thanksgiving still holds the title of the most important day for retailers. But does it mean the same to traditional convenience store operators?
A quick scan of c-store companies finds mixed results. Some stores will be offering deals -- mostly on coffee – but others have decided not to join in this year's Black Friday frenzy.
For example, Thorntons Inc. has decided to sit this one out, after offering E85 flex fuel for 85 cents per gallon at stores in Kentucky and Indiana last year. "Last year, we had built out a number of stores with E85, so we looked at Black Friday as a unique way to introduce it to those markets," John Zikias, vice president of marketing, told CSNews Online.
Alhough the sale did drive some other purchases on that day, Thorntons was the only retailer in Kentucky offering E85 at the time, he noted.
Even without offering any deals this year, Zikias is still interested to see what Black Friday brings, especially since the company's stores don’t typically bring in high volumes on holidays.
"For us, because of where a lot of our stores are located, we do very well Monday through Friday and on Saturday, to some extent. But on holidays, the volume is down from a typical day," Zikias said.
However, he is waiting to see what happens this year with more retail outlets opening their doors earlier than ever before. If last year is any indication, Thorntons could see customers earlier than expected.
"Last year, our stores located on the way to malls or near malls did see higher coffee volume earlier in the morning," he explained. "But our usual early rush, between 5 a.m. and 8 a.m., wasn't normal."
Thorntons is not alone in leaving Black Friday deals to the likes of Target and Walmart. RaceTrac is also taking a pass this year, according to a company spokeswoman. Last year, the convenience store operator offered free coffee to shoppers in Atlanta and Dallas from midnight to 10 a.m., but RaceTrac decided against a similar promo this year.
YORK — The atmosphere was decidedly upbeat during the 2011 edition of the York County Corn Growers Association annual banquet.
The event was Friday evening in York with Clark Pickrel, president of the association, as master of ceremonies.
Near the end of the banquet Pickrel was honored as the York County Corn Grower of the Year with a plaque presented by Gary Zoubek of the York County Extension Office.
Curtis Friesen, a local farmer who sits on the Nebraska Corn Board, declared it to be “an exceptional fall” in 2011. “The weather stayed nice” right through harvest.
In remarks on a variety of corn industry topics, Friesen lamented that, “It seems like we spend hundreds of thousands of dollars defending our industry. To me it’s a big waste of time and money.”
Speaking of corn marketing efforts, Friesen mentioned the relationship between ethanol fuel and NASCAR racing.
“It’s expensive,” he acknowledged.
“It’s not cheap to partner with NASCAR, but they’re very good at what they do.”
He said drivers on the wildly popular stock car racing circuit are liking the performance they’re getting with ethanol in their fuel tanks.
Friesen said “getting blender pumps” with capability to mix several levels of alcohol right at the pump “has been a challenge. It’s expensive” to install the equipment, “but the (corn) board helps with incentives.
Trouble is, he said, Congress “pulled the rug out” from a program to encourage just such installations.
“Everybody we’d talked to about blender pumps just stopped,” he said.
President of the Nebraska Corn Growers Association, Clark Sousek, gave a similar report from his organization’s perspective.
He said Nebraska Corn Growers is proud of the 9,000 bushels of grain that was donated, then sold with proceeds benefiting victims of the devastating tsunami in Japan.
In his overview of state and national issues, Sousek spoke of a newly formed organization in Nebraska called We Support Agriculture that is designed to counter measures by extreme animal rights organizations, primarily the Humane Society of the United States.
BOCA RATON, Fla. -- Airport patrons picking up a flex-fuel rental vehicle, as well as those FFV drivers retreating to the beautiful Tidewater, Va., peninsula this week can now fill up with E85 at Airport BP. Airport BP, a full-service auto repair center and convenience store near Newport News-Williamsburg International Airport, started selling E85 ethanol this month. E85 is a blend of 85 percent ethanol and 15 percent gasoline. By opening an E85 station with partner Protec Fuel, Airport BP, open in Newport News since 1977, helps reduce emissions, lower our dependence on foreign oil and spur domestic economic growth.
Protec Fuel, based in Florida, has partnered with Airport BP to provide fuel for the company's new greener burning fuel option and assist with its fuel launch.
"We've been open since 1977, but our business is diversified and keeps evolving," said Airport BP owner Pete Finkenauer. "The natural evolution for us, being in a beautiful coastal region, is offering the consumer an alternative fuel that can help protect our environment. I pursued E85 myself, as it supports American farmers and keeps more money here in the U.S.," he said.
"We are happy to expand our Virginia service area," said Todd Garner, CEO of Protec Fuel. "Mr. Finkenauer values giving choice to his customers, as well as lessening his company's impact on the environment," he said. "His location near the airport will hopefully catch the attention of travelers and car rental companies with flex-fuel vehicles."
There are more E85-fueled vehicles than any other alternate fuel vehicle in tracked fleets in Virginia. This makes Virginia's ninth public E85 station. Protec contributed to four of these projects.
"We are very excited to see continual growth of cleaner domestic ethanol stations in Virginia," said Alleyn Harned, Executive Director of Virginia Clean Cities. "With hundreds of thousands of Flex Fuel vehicles in Virginia, E85 at stations like Airport BP are great way for fleets and individuals to use a cleaner domestic option." Virginia Clean Cities is a local nonprofit clean air and domestic fuel advancement program based in Harrisonburg, Va. Additional information can be found at vacleancities.org.
Besides its environmental and energy security benefits, E85 also sells for less than conventional gasoline in this market.
Airport BP is a service station offering both self and full service fill-ups and a complete auto repair center, and it also has attendants on hand seven days a week to assist with handicapped and propane service.
Airport BP:
12256 Jefferson Ave.
Newport News, VA 23602
Not everyone knows it, but most Americans use biofuels to help power their car or truck every day. Using biofuels we produce here at home creates jobs, raises incomes for farmers, and saves us all money. The ethanol mixed into the gas we buy at the pump saved American drivers almost 90 cents per gallon last year.
Moving forward, we’ll see Americans running their cars with more biofuels mixed into the gas – like E85, a mix with 85 percent ethanol. And USDA will help install thousands of new pumps at gas stations so drivers can pick the sort of fuel they want.
And it’s not just car and truck owners who can benefit from renewable biofuels. Biofuels can be used in all sorts of engines and planes are getting into the act as well.
This month, two major U.S. airlines flew the first commercial passenger flights powered by biofuels, including a cross country flight from Seattle to Washington DC. Airlines are looking for reliable, affordably-priced fuel. They hope that using biofuels will limit the impact that unpredictable gas prices have on their bottom-line, making them more profitable while also limiting their impact on global climate change.
Passenger and cargo airlines in America spend about $50 billion on fuel each year. If just a fraction of those billions are used to purchase American-produced aviation biofuels, we’ll create thousands of good-paying jobs, particularly in our rural communities. That’s why, earlier this month, USDA announced support for a facility that will begin the process of turning algae into jet fuel and create 60 jobs.
What’s more, USDA has made important investments on aviation biofuels research and development to help universities and private firms expand and improve production. And we are partnered with the Department of Energy and the U.S. Navy to work towards using biofuels in our military planes and strengthen our national security.
In the years to come using new sources of renewable energy to fuel our cars, trucks and even our planes will be a game-changer: reducing the influence that foreign nations have in setting our fuel prices, driving economic growth, and creating jobs across the country.
Want to know what the best vehicles are for fuel economy, including flex-fuel vehicles (FFVs)? Consult the 2012 Fuel Economy Guide, released by the U.S. EPA and U.S. DOE on Nov. 16.
The annual guide provides consumers with information about fuel efficient vehicles in an effort to help them save money and reduce greenhouse gas (GHG) emissions, according to the agencies. It includes information on conventional gasoline vehicles, FFVs, electric vehicles, hybrids, natural gas vehicles, fuel cell vehicles and more.
Each vehicle has an estimated annual fuel cost provided in the guide. It is based on the miles per gallon (mpg) rating as well as national estimates for fuel prices and annual mileage. For more information, or to input local gasoline prices and typical driving habits and receive a personalized fuel cost estimate, consumers can go to http://www.fueleconomy.gov or fueleconomy.gov/m for mobile devices.
The fuel economy guide’s specific information about FFVs includes links to E85 station locations as well as a cost calculator to compare operating a FFV on E85 versus gasoline.
Beginning in 2012, some vehicle models will start displaying a new fuel economy and environment label that was finalized this summer by the EPA and the National Traffic Safety Administration. The labels are required for model year 2013 for seven types of vehicle technologies, including FFVs. However, some automakers may voluntarily adopt them earlier. The labels retain many of the same features of the existing fuel economy labels, such as annual fuel cost and city, highway and combined mpg. Some of the new information on the labels includes five-year fuel costs or savings compared to the average vehicle, plus GHG and smog ratings.
The new label for FFVs states, “Values are based on gasoline and do not reflect performance and ratings on E85.” The agency had proposed a variety of options for FFVs, including requiring the addition of E85-based mpg or E85-based mpg equivalents. In the end, the decision was made to maintain the current policy, meaning only gasoline-based mpg is required on the label. “Only a few commenters addressed ethanol flexible fuel vehicles, and most who commented on this option supported the current policy,” the final rule said. “… Data show that, on average, FFVs operate on gasoline nearly 99 percent of the time, and on E85 fuel about 1 percent of the time. In light of this, the agencies believe it is appropriate to require only gasoline values on the label, and to provide E85 information on the [fuel economy guide] website.”
Establishing a nationwide program for fuel economy and GHG emission reductions is in the right overall direction, said Mitch Bainwol, president and CEO of the Auto Alliance. The administration must keep in mind, however, that technology advances will be required. In addition, automakers need consumers to purchase energy-efficient technologies in large numbers if they are to meet the required goals. “Automakers have already invested billions of dollars in new technologies, so consumers now have many choices when shopping for fuel-efficient vehicles,” he said. “Today, on dealers’ lots, there are more than 160 models that achieve 30+ mpg, with more coming. Sales of these and even more fuel-efficient vehicles will be critical to achieve these policy goals.” Bainwol added that sales of autos are linked to jobs. “So as we set national policy,” he said. “We need to remember that fuel economy is also an economic issue.”
SPRING HILL, Fla. — Jallo Oil, through its Spring Hill Mobil station, is allowing southwestern Florida flex-fuel vehicle drivers to fill up with E85 fuel for the first time in Hernando County. The Spring Hill, Fla., station, which launched its E85 sales this week, is at the corner of Spring Hill and Barclay.
Protec Fuel, based in Boca Raton, Fla., has partnered with Jallo Oil to manage the E85 installation and provide fuel for the company's new greener burning fuel offering. Protec is a turnkey E85 company specializing in station conversions and fuel distribution. Flex-fuel vehicles can run on E85 and gasoline. E85 is a blend of 85 percent ethanol and 15 percent gasoline for flex-fuel vehicles (FFVs).
"We feel this is a win-win for the area and hopefully for our business," said Paul Jallo, President, Jallo Oil Distributors. "We see excitement building for FFV drivers because they know they can use E85; they just didn't know where to get it in our area before."
"Paul Jallo's excitement in offering the E85 choice for Spring Hill residents is refreshing," said Todd Garner, CEO of Protec Fuel. "He knows he is doing right by the environment and the U.S. economy by offering a cleaner-burning option for customers, but he believes it makes sense from a business standpoint as well. He's differentiating his convenience store," he said.
Besides Jallo's pledge to always sell his E85 for less than conventional gasoline at the Spring Hill Mobil, it is better for the environment and supports our U.S. and local economies. Additionally, Jallo Oil offers even greater savings on gallons of their fuel - $.15 off per gallon - if you purchase a car wash when you fill up your tank. Visit www.e85fuel.com/flexible-fuel-vehicles if you're unsure if your vehicle can run on E85.
Jallo Oil has been operating in the county for seven years and is a diversified company that operates Warehouse Wine & Liquor area stores, as well as shopping centers, and calls its Mobil convenience store a "one-stop shop."
Spring Hill Mobil:
14311 Spring Hill Drive
Spring Hill, FL 34609
352-688-0422
www.jallooil.com
Thursday, November 17, 2011
Econation partners with Propel Fuels, for fleet-based biofuels
In California, Propel Fuels announced a fueling partnership with Econation, a global ground transportation company that will fuel its fleet of Flex Fuel vehicles at Propel locations in the greater Los Angeles area with Propel’s renewable E85 fuel.
As a business member of Propel’s proprietary CleanDrive® program, Econation will also be able to track the environmental and impact of every gallon of Propel fuel pumped, including pounds of CO2 reduced, barrels of oil displaced and more. Propel’s CleanDrive system is an integrated carbon emission reduction tracking platform that tracks and displays the carbon emission reductions from the use of renewable fuels purchased at Propel stations.
The recently-launched coalition is made up primarily of fuel retailers who are concerned about the future of E85 once the Volumetric Ethanol Excise Tax Credit (VEETC) expires without renewal at the end of the year. “E85 as an alternative fuel is defined everywhere in the U.S. code, except for the Internal Revenue code,” explains tax code specialist Jeff Trinca, who is working with the coalition. That was because of the VEETC, to avoid “double dipping” in tax credits. “Now VEETC’s going away and what we’re basically saying is we would like E85 to be included in the definition of alternative fuels with propane, natural gas and others so there’s a level playing field,” Trinca says, noting that the coalition is only looking for a five year bridge to get the infrastructure in to be competitive with gasoline.
Trinca says they are working on getting a bill introduced in Congress to address the issue before the end of the year.
Trinca and coalition representative Phil Lampert, both pictured here, were at the National Association of Farm Broadcasting annual meeting last week explaining the issue to the nation’s farm broadcasters. Listen to my interview with Trinca here: Jeff Trinca, Coalition for E85
The first alternative fuels station in Raleigh opened Wednesday afternoon on New Bern Ave. selling E-85 Ethonal and B-20 Bio-diesel.
The Crown Express Mart is one of a tiny number of alternative fuel stations in the state, but experts those kind of stations soon will become commonplace around these parts.
In the last 10 years, only 18 alternative fuel stations have opened in North Carolina.
“It took us five years of those 10 just to get the first station,” explained Anne Tazewell, the program manager of N.C. State’s Solar Center.
But as petroleum prices increase and more and more vehicles are manufactured to use alternative fuels, experts believe alternative fuel stations will proliferate.
“I really see the market taking off mid-year, next year quite a bit,” predicts Steve Walk, the executive director of Protec Fuel.
Experts say a new kind of computerized gas pump will help expand the market for ethanol by making it as easy as a few key strokes to change the gasoline to an ethanol mix.
Currently, E-85 fuel being sold is 85% ethanol. The new pumps will allow instant blending, so merchants can sell E-50, E-40, E-20 or any other ethanol to gasoline mix that the marketplace dictates is viable.
But Walk believes in the next year or so, an E-15 mix will become a popular seller. E-15 will cost less per gallon than pure gasoline and can be used in any type of engine.
Despite a special introductory price of 85 cents a gallon for E-85 at the Crown station, NBC-17 found many drivers didn’t know their vehicles can use that fuel until it was pointed out to them their engines can handle flex fuels.
Meanwhile, those behind the conversion to alternative fuels at that station hope the New Bern Ave. location will become the smart choice for many consumers.
“There are a lot of flex-fuel vehicles in the general public, but also, the state fleet is just down the road,” said Walk. “It’s a very convenient place for them to come fuel these vehicles”
One disadvantage is flex fuels can get fewer miles to the gallon than regular gasoline because ethanol does not produce as much energy as gas, according to the U.S. Department of Energy.
Currently 40 models of cars can handle flex fuels, with more models being added every year.
In order to earn the privilege to drive, potential drivers must not only learn the rules of the road, but also show an understanding of safety issues. It is time that the privilege includes the responsibility to understand how their gasoline addiction has a direct impact on safety as it relates to their economic/environmental/energy/national security—and personal health. A national public education strategy worked for littering, recycling, smoking, seat belts and child safety seats. It’s time we give our national energy crisis and the national renewable fuel standard (RFS) the same reverence we give auto safety and trash—and with the same order of magnitude.
The National FlexFuel Vehicle Awareness Campaign initiated such a project by working with the American Association of Motor Vehicle Administrators. The AAMVA recently reached out to all of their state motor vehicle administrators (MVAs) and informed them about our new FlexFuel Vehicle Awareness/Motor Vehicle Administration Driver Education Project. The FFV/MVA project creates the opportunity to collaborate on driver education projects in six states with high concentrations of flex-fuel vehicles (FFVs) and/or flex-fuel pumps. Why? In some areas it is estimated that 90 percent of FFV owners don’t know they are driving this special vehicle. Therefore, it would be safe to guess that an equally high number don’t know where to find nearest flex-fuel pump. How to reach those drivers—the motor vehicle administration. The first question to be asked—“Are you driving an FFV?”
The initial response to the FFV/MVA project has been favorable because it also supports the goals of the RFS which are synergistic with state goals to create jobs, protect the environment and public health of citizens and improve energy diversity. Two components of this project point to its potential effectiveness. First, states think this project is timely because they believe chronic high gasoline prices and supply shortages will continue and become status quo. Second, FFV owners and flex-fuel pumps could be an important part of the state’s energy emergency preparedness plan, in the event of a price spike or shortage caused by a natural or diplomatic disaster.
The FFV awareness campaign will work to combine its education tools with the MVAs’ ability to communicate with all drivers, and specifically FFV owners. First, we will encourage states to develop their FFV owner/vehicle registration database, similar to projects piloted by the American Lung Association and other stakeholders in Ohio, Nebraska, Minnesota and Wisconsin. Each state is unique, so we have found different procedures need to be followed.
To further the FFV/MVA project, we will also help MVAs explore, and include in the daily work routine, other no- to low-cost activities that could make energy and FFV awareness part of driver education culture. Activities include posting website information, reaching out to FFV dealers, incorporating FFV information in driver preparation and testing, including information in vehicle registration and license renewal mailings, safety inspection and emissions notices, and providing information at point-of-service locations. Our preliminary research shows MVA participation does not need outside agency approval for most activities and actual internal costs are zero to minimal.
Our research discovered that significant education projects that are aimed at the driver and focused on energy awareness, and especially the RFS or FFV owners simply do not exist outside a few Midwestern states. Our efforts will begin to fill that void by creating demonstration programs and encouraging other states to do the same. For example, the North Dakota state government recently partnered in a program that will invest nearly $500,000 to start reaching FFV owners in their state. USDA, the U.S. EPA, and the Governors Biofuels Coalition have added their support to the FFV Awareness Campaign. Our goal now is to appeal to more stakeholders to join in.
Supporting the RFS
The project addresses many of the challenges that face stakeholders trying to support the RFS. It will:
Help sustain existing E85 infrastructure to support the rollouts of midlevel blends and transition to flex-fuel pumps.
Complement industry/government refueling infrastructure investments—by educating customers and helping them locate flex-fuel pumps.
Generate energy awareness while creating positive information about the RFS, ethanol and alternative fuel vehicles.
Leverage the support of EPA, USDA, the Governors Biofuels Coalition, several Clean Cities Coalitions, and over 30 other energy/environment/national security organizations for the campaign.
Educate consumers that they can move from the existing involuntary purchase of ethanol to one of choice. The RFS is not a consumer requirement.
Help break the E10 blend wall by reaching demand levels that will justify investment in cellulose and advanced ethanol/biofuels.
We hope stakeholders don’t see this as “instead of” project that would deter from other market development and refueling infrastructure investment efforts. It’s part of a portfolio approach. We trust most RFS advocates will also see this effort is not just about FFVs or specifically E85. It is a tremendous opportunity at hand. The project is first about the RFS, and then how the states and the public can achieve those benefits with the use of higher blends of ethanol—safe and valuable common ground for many diverse groups to rally around.
Considering the end game in this adult education process, it is likely that more consumers will be willing to try and sustain the purchase of higher blends of ethanol if they were truly enlightened. More FFV owners would look for a flex-fuel pump, if they knew it was for their flex-fuel car. We hope industry and government stakeholders share our vision. There are multilevel values of the FFV campaign as both a near and long term strategy—and it needs to be supported now.
Regardless of the eventual price point for higher ethanol blends, education will play an important role in consumers valuing fuel choice. After all, hybrids, Volts, and electric vehicles do not have an economic advantage today—but they are all sold on the same FFV value proposition of energy and environmental security. This project will generate as much goodwill about the RFS and ethanol as simply encouraging ethanol use. Regardless of the burden of proof, consumers will continue to be exposed to fear and doubt generated in the media and they will need counterbalancing information.
Collaborating with Automakers
There also are many value propositions and justification for automakers to support this FFV/MVA project and therefore support the RFS and the use of higher blends of ethanol in their vehicles.
First, education aimed at all drivers will reach millions of consumers. This will engage drivers in the first step of educated decisions—to determine if their vehicles can use a higher blend of ethanol. This will reduce automaker concerns about proper refueling, and in the end, create a satisfied consumer for all stakeholders.
When specifically aimed at FFV owners, the project is aligned with the proper refueling goals of all automakers and the need to increase the utilization of alternative fuel in FFVs to meet corporate average fuel economy standard (CAFE) credit usage verification requirements. In addition, the project addresses the long-term complaints from the environmental community regarding minimal flex-fuel use in FFVs.
Success in educating consumers will enhance the value of the FFV credit/technology option to reduce greenhouse gas emissions, and could serve as a safety net should consumers not fully embrace the introduction of electric vehicles, which is needed to meet new CAFE regulations. Furthermore, energy awareness will accelerate the desire of the public to buy more new fuel-efficient, clean-burning alternative fuel vehicles as they come to market. This would help move energy usage responsibility from being solely the burden of the automaker to one of a shared responsibility with the vehicle owner and the fuel provider.
While many state governments are interested in the economic, environmental and energy security benefits of the RFS, we have found very few focus on how to reach that endgame. The clean fuels and clean cars stakeholder coalition created during the Clean Air Act Amendments of 1990 led to a historic change in fuel quality, emissions reductions and, as an added bonus, crude oil reduction. The next round of CAFE requirements, and possible changes to fuel, represent the next historic opportunity.
The FFV/MVA project is a win for states interested in developing biofuels, a win for FFV makers and dealers, a win for gasoline retailers, a win for agriculture, a win for the biofuels industry looking to hurdle the E10 blend wall, and a win for the public. This project is truly in the national interest and supports the goals of the general public.
Author: Burl Haigwood
Director, Program Development, Clean Fuels Foundation
(301) 718-0077 Burl.Haigwood@cleanfuelsdc.org
On the Web
Support the FFV Awareness Campaign, get more information about the FFV/MVA project: www.FFV-Awareness.gov
From the standpoint of Matt Horton, CEO of Propel Fuels, efforts in 2011 to extend the Volumetric Ethanol Excise Tax Credit imperiled the future of the industry. “For so long, the industry has been focused on preserving that credit for the entire ethanol industry that I think we’ve backed ourselves into a bit of a corner,” he says.
The Redwood City, Calif.-based company firmly believes the future is high-level blends and advanced ethanol. The company owns and operates a network of self-serve filling stations in California and Washington state, with plans to add more than 200 additional sites in the next two years.
First-generation ethanol has done a fantastic job of filling the need for E10, Horton says. As the industry moves forward into 2012, however, there needs to be an aggressive and massive build out of infrastructure to handle higher blends of ethanol. Secondly, cellulosic and other advanced ethanol products need to begin entering the marketplace. “We’re at a critical transition point in the industry. We need to recognize that what got us to this point is not going to be able to carry us forward in a fast-growth kind of way that I think we want to see,” he tells EPM. “The industry is beginning to shift but we’ve got to come together and focus on the future of our industry. I believe that if we do that, the future for the ethanol industry is unlimited. We will become a true substitute for gasoline, and we will be the leading fuel in this country to offset imported petroleum.”
Horton feels the single most critical issue for the industry is a tax credit for E85. That’s why the company is a part of the Coalition for E85, which is lobbying for the fuel to receive a 50-cent-per-gallon tax credit as part of the Alternative Fuel Credit. Currently, compressed natural gas, propane and hydrogen are eligible for the tax credit. “If we are going to continue to grow, we’ve got to be able to competitively price E85,” he says.
On behalf of Corn Growers in Colorado and our nation, I'm compelled to address misinformation leading the Fort Collins City Council to consider phasing out use of E85 fuel for city vehicles.
Recent City Council meeting coverage by Coloradoan reporter Kevin Duggan ("City might phase out use of corn-based ethanol fuel") reflected often-cited misinformation about corn-based ethanol stubbornly perpetuated through media channels and now landing in a Fort Collins City Council work session.
Subsidies a boondoggle? Hardly. A 45-cent "blender credit" primarily goes to oil companies to stimulate infrastructure for present and second generation bio-fuels. That's next to nothing compared with the roughly $3.80-per-gallon collection of subsidies provided the petroleum industry.
Food price impact? No federal report attributes 20 percent of the food price increase to ethanol. The Congressional Budget Office has the number at 0.5 percent. USDA calculates it more broadly at 1.1 percent. The rising cost of petroleum and transportation is by far cited as the biggest reason for increased food costs. Record profits by members of the Grocery Marketers Association also are worth understanding. By the way, multiple studies have shown that having ethanol in our fuel supply has lowered the cost of fuel 35 to 40 cents per gallon, and that's not just for flex-fuel vehicles ... that's for everyone.
Environmental impacts in the Midwest? Data clearly show we continue to grow more crops with fewer pesticides every year. Efficiencies are amazing and continue to improve with healthier farm economies and advances in tillage techniques, varieties, application methods and monitoring equipment.
Water use by corn? Consider that all living plants require water to live and grow, and they convert harmful CO2 to oxygen - veritable oxygen factories, providing food and energy along the way. Can't say that about every plant or every use of water. Our nation uses 300,000,000 gallons of water per day just to process a day's supply of newsprint. By the way, every barrel of oil requires 1,851 gallons of water in the refining process. What do we get out of that? Energy dependence on people in foreign countries who work to kill us. Health problems from emissions. A host of environmental problems.
Ethanol reduces greenhouse gas emissions, stimulates jobs and contributes to healthy rural economies that crank out the food, feed, fiber and fuel resources to supply this nation and beyond.
The city of Fort Collins wisely invested in vehicles that lower air pollution, improve the American economy and decrease our dependence on foreign oil. We welcome the opportunity to discuss why they would be wise to not turn their backs on those benefits.
Rick Palkowitsh, a Burlington-area farmer, is a Colorado Corn Growers Association board member.
Raleigh now has a gasoline station that sells E85 ethanol fuel - the 18th such facility in the state built in recent years.
The Crown Express Mart on New Bern Avenue began selling the 85 percent-ethanol blend last month. The station, which also sells biodiesel made from plants.
E85 is typically made from corn and costs less than gasoline because it's subsidized and it contains less energy than petroleum fuels. Crown Express is selling the ethanol blend for $3.34 a gallon.
All automobiles can use the 10 percent E10 blend sold at almost all gas stations, but only cars certified as Flex Fuel vehicles can use E85 sold at five stations in the Triangle and 18 statewide.
Ethanol remains controversial because it's believed to divert agricultural land use from animal feed and food production, which drives up the cost of food and related farm products.
Other stations in the Triangle that sell E85 are the C Mini Mart in Apex, Cruizer's Biofuels in Durham, StarMart Exxon in Garner and Cruizer's No. 46 in Pittsboro.
The Crown Express Mart financed the E85 pump with a $104,000 federal grant channeled through the N.C. Department of Transportation and distributed by the N.C. Solar Center.
Lincoln, NE—A new grant awarded by the U.S. Department of Agriculture will be used to promote flex fuel vehicles, flex fuel pumps, and driver education.
The grant was announced at a meeting of the Nebraska Ethanol Board today.
The Nebraska Ethanol Industry Coalition (NEIC), a non-profit educational organization, will be working with the FlexFuel Vehicle Awareness Campaign to institute a wide range of activities aimed at increasing ethanol use in order to meet the national renewable fuel standard.
Project partners include the Nebraska Ethanol Board, the Nebraska Corn Board, the Clean Fuels Foundation, ICM, Poet Ethanol Products, Monsanto, Green Plains Renewable Energy, and Phibro Ethanol Performance Group.
While the FFV Awareness Campaign is an ongoing national effort, this project will concentrate on six states: Nebraska, Iowa, Kansas, Maryland, Georgia and Florida.
Key elements of the project include working with state motor vehicle departments to inform drivers that they may already have a flex fuel vehicle and how FFV drivers can easily find fueling sites offering high-level ethanol blends.
The campaign will also provide an opportunity to educate all drivers on ethanol with respect to performance, emissions, and advantages it provides over gasoline and imported oil.
Todd Sneller, Chairman of the Clean Fuels Development Coalition and Administrator of the Nebraska Ethanol Board, said the project reflects a unique “virtual pipeline” that targets production states like Nebraska, Iowa and Kansas and links them with key markets like Maryland, Georgia, and Florida.
“Clearly we are near the saturation point in terms of ethanol blends in conventional vehicles,” said Sneller.
“To maintain the renewable fuel standard and move to the next level we need to take advantage of the 9 million FFVs on the road today that can use high level ethanol blends, ranging up to E85.
"For that to happen drivers need to know their vehicles have this capability and where to find the fuel,” he said.
According to project participants, consumers can check their owners’ manual, gas caps, and check their vehicle identification numbers at several websites to find out if they have a FFV.
Even for those who do not, the inquiry often leads to interest in the subject and an increase in FFV inquiries to auto dealers.
FFV Awareness Campaign officials are currently in discussions with several state motor vehicle administrators.
They say that reaching drivers through current state communication channels like emission notices and registration renewals would be an extremely efficient means of reaching both current and prospective FFV owners.
The USDA grant was issued under the Rural Business Opportunity Grant program.
The project will also focus on rural areas that can adopt ethanol as a business opportunity through flex fuel pumps and retail outlets.
“The importance of ethanol production to rural America cannot be overstated,” said Sneller.
“Distributing and using the fuel in smaller communities adds to the total value of this important domestic product.”
Sneller added, “This is a significant project in scope and size and has the potential to yield substantial results.
"We look forward to working with all the project partners who have provided financial and human resources to this effort and we anticipate adding more partners as the project progresses.”
Additional partners include the Maryland Grain Producers Utilization Board, Protec Fuels, Bossleman Energy Services, and Lampert Consulting.
For further information on the project contact: Douglas Durante, Clean Fuels Development Coalition, 301-718-0077.
“With the election season ramping up and daily conversations occurring in the media around budget cuts and tax policy, it is important that the public be educated on a few facts about alternative fuels,” said Pearson Fuels co-founder Mike Lewis.
“The bottom line is that alternative fuels, and biofuels in particular, displace a massive amount of foreign oil every day in this country.
"It is also important to understand that biofuels employ hundreds of thousands of people with money that would otherwise be sent overseas.
"Alternative fuel industry members know these facts and take this information for granted, but we need to get the general public up to speed on this information.
"Once Americans understand the benefits of alternative fuel, they can demand the same from their government leaders.”
Robert White of RFA stated, “It is great to see a company like Pearson take an active role in educating consumers on these subjects.
"Many Americans don’t realize the contributions that alternative fuels like ethanol make to the economy and our environment.
"Pearson did a great job in getting the message across in an educational and entertaining way.”
Ron Lamberty from ACE added, “Pearson has been a leader in alternative fuels on the West Coast and they are continuing that leadership with this video.
"The video shows the stark comparisons between oil and alternative fuels, and reminds people why we developed ethanol and other alternatives to petroleum.
"Hopefully this video will help people realize that they do have choices other than oil, and through the efforts and investment of companies like Pearson, those alternative fuel choices are available to more and more people.”
The production was created in collaboration with Martinez Creative Groupof Chicago, IL.
Creative Director, Kris Martinez commented, “The feedback we've had on the Pearson spot has been very positive: In a 1-minute space of time, we were able to effectively communicate a few key points and educate the public in a memorable and engaging way.
"In all of the industry research we've done, we haven't seen anyone doing anything to promote renewables in this way.”
Pearson Fuels is the leading company in California providing alternative fuels to both the public and government entities.
Pearson opened in 2003 as the nation's first Alternative Fuel Station.
Located in the center of San Diego and specializing in bringing alternative fuels to the public, Pearson was the first facility of its kind and pioneered the first public E85 station on the West Coast.
Pearson has grown into California’s largest E85 distributor and is actively developing several projects including two biodiesel blending terminals and two retail hydrogen stations.
Information about Pearson Fuels can be found at www.pearsonfuels.com, or call 619-857-2782.
More than 200 people representing all sectors of agriculture gathered in Fargo, N.D., Nov. 7-8 to discuss issues related to the 2012 Farm Bill during a conference jointly organized by Sen. Kent Conrad, D-N.D., and Won Koo, professor and director of the Center for Agricultural Policy and Trade Studies at North Dakota State University. Elected officials from North Dakota and Minnesota, agriculture policy experts from across the United States, state and national agriculture interest groups and ethanol industry representatives gathered to dissect anticipated changes to farm policy under the broad umbrella of the Farm Bill as legislators work to craft the latest five-year plan. Crop insurance policy quickly rose to the top of producers’ list of priorities for the bill, followed closely by funding for agriculture research and biofuels programs.
Michael Scuse, acting under secretary for the USDA’s Farm and Foreign Agricultural Services pointed out that agriculture is responsible for one of every 12 jobs in the U.S. and is currently in the midst of a prosperous time period. However, the House and Senate agriculture committees’ recently recommended $23 billion reduction to the 2012 Farm Bill leaves little doubt that program cuts will be made and producers will need to find ways to do more with less, he said. One of the USDA’s priorities is to present the Farm Bill as being more than just about “the farm” and instead drawing attention to its broad focus, which includes nutrition funding, research and energy, he said. “We need to make clear to the 98 percent of Americans who don’t farm that this bill affects everyone,” he said.
Darin Anderson, president of the North Dakota Corn Growers Association, ranked ethanol policy as third on the group’s list of priorities, after crop insurance and revenue-based farm programs, and offered first-hand experience of the important role blender pumps can play in expanding ethanol’s market share. “We have a great blender pump marketing program in this state,” he said. “E85 sales have increased by well over 100 percent in the past year because of these pumps that have been installed. It’s a great program and if we can expand that in the United States it would be great for the industry.” North Dakota’s blender pump program provides reimbursements for retailers who install blender pumps. The program is largely state-funded, but one of the national programs in jeopardy of being cut in the 2012 Farm Bill, the Renewable Energy for America Program, was used this year to provide infrastructure incentives in all states and appears to be the industry’s current best chance at receiving federal infrastructure assistance. In her remarks at the conference, Sen. Amy Klobuchar, D-Minn., indicated that REAP may be spared in the Farm Bill, but the committees have yet to release firm details.
According to the MAB, a council composed of 13 retired three- and four-star generals and admirals, America’s dependence on oil is a significant national vulnerability and “Immediate and aggressive action to move our transportation sector away from oil and toward alternative, domestically produced sources of energy are needed to improve our national security posture.”
Energy security is national security. If we cannot fuel our own military ships, tanks and jets, we cannot protect our nation.
In fact, in its 2010 Fuel Scorecard, the Truman National Security Project concludes that the policy of keeping oil as our primary transportation fuel “clearly stands out as the most harmful for U.S. national security overall.”
There is only one solution: we must use less oil. And we can, through conservation and efficiencies over time, and significantly right now by substituting the use of oil through domestically-produced alternatives – specifically, ethanol.
Domestic ethanol is the single-best alternative to foreign oil we have. Grain ethanol is already here and commercially viable. And if we can lift the regulatory hurdles that are stifling the natural market-expansion of the U.S. ethanol industry, it will replace more.
A full move to E15 (15 percent ethanol, 85 percent gasoline) will help our nation meet the goals of the Renewable Fuels Standard. And by expanding the market for domestic ethanol, E15 can spur private capital investment into the development of ethanol from cellulosic biomass. With cellulosic ethanol, we can turn feedstocks such as corn stover, citrus waste and even woodchips into clean, renewable fuel.
Long term, we need to invest in the infrastructure necessary to deliver higher level blends of ethanol to the consumer. The key to that are Flex Fuel pumps and Flex Fuel vehicles.
A commitment to expanding our nation’s renewable fuel industry will strengthen our energy security, generate more U.S. jobs that can’t be outsourced and improve our environment. We have had opportunities in the past to enact these changes, yet we have failed. Today, we can no longer afford to hit the snooze button.
As the MAB states in their recommendations, “The time for our nation to act is now; this is a call to action.”
Members of the Open Fuel Standard Coalition joined with Representatives Eliot Engel (D-NY) and John Shimkus (R-IL) to call for consumer choice at the pump during an Energy Security Roundtable and media event in Washington DC on Tuesday
The two congressmen, pictured here with former National Security Advisor Robert McFarlane, outlined their Open Fuel Standard Act (HR 1687) which would set a deadline of 2017 for automakers to stop making cars that run on only gasoline. After than point, all American made cars must be either flex fuel (capable of burning gasoline, ethanol or methanol or any combination of these), or powered by natural gas, hydrogen, biodiesel, plug-in electric, or fuel cell.
“By employing the Open Fuel Standard, we can create competition for petroleum on the open market with other types of fuel. We don’t have to wait for the perfect technology,” said Rep. Engel (center).
“Consumers should have a choice when they pull up to a refueling station,” Rep. Shimkus (right) added. “At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.” At a minimal cost, vehicles could be able to accept multiple fuels with consumers choosing based on price or even feedstock for the fuel.”
Also at the event were NASCAR driver Kenny Wallace and representatives from the Renewable Fuels Association, the Methanol Institute and ACT! For America.
ICM Inc. and Ignite Racing Fuel are sponsoring a vehicle in a six-day treasure hunt and race-track based rally that begins Oct. 27. The two-man team is made up of race car driver Eric O'Sullivan and Steve Vander Griend, head of ICM Inc.’s research and development of ethanol engines.
The race begins in Seattle, Wash., and the finish line is in Las Vegas Nev., Nov. 1 at the annual Specialty Equipment Market Association (SEMA) Convention. According to the website, the Autoweek America Adventure is a “mix between track racing, scavenger hunt-like game playing and rally driving.” The goal is to complete missions, earning points to win one of seven keys. At the finish line, the team with the correct key will win the grand prize, a limited edition 2011 Mopar Dodge Charger. "Everything about this whole event sounds fantastic," O'Sullivan said. "It's going to be a lot of fun navigating our way through six days of clues and countryside, and the track-based challenges will really mix things up. I am looking forward to the fun and relaxed atmosphere of the event, but make no mistake, Steve and I will be pushing for those daily keys so that we are the ones driving out of the SEMA convention behind the wheel of the MOPAR Charger!"
The duo will drive a 2006 Dodge Daytona Charger in the race. It has been converted to a flex-fuel vehicle with a conversion kit from Flex Fuel U.S., which is optimized to run on E85. Instead of a 15 percent to 25 percent drop in fuel economy, typical with original equipment manufacturer (OEM) FFVs, the Flex Box Smart Kit results in only about 2 to 5 percent fuel economy loss when compared to 93 octane gasoline. “In addition, the Flex Box Smart Kit improves horsepower and torque with E85,” the company said. “Typically Flex Fuel U.S. measures a 10 percent increase in horsepower and torque.”
A new public education project to reach drivers of FlexFuel Vehicles (FFVs) by working with state Motor Vehicle Administrations (MVA) was announced today by the Alliance of Automobile Manufacturers and the Clean Fuels Foundation.
As a part of the national FFV Awareness Campaign, the “FlexFuel Vehicle/Motor Vehicle Administration” project will work with MVAs in six states on outreach opportunities such as developing an FFV owner database, vehicle registration and license renewals, safety inspection and emissions notices, and including information with the energy/emergency preparedness program, state websites, and at point of service.
“Working together with MVAs and automakers we want to reach drivers of FFVs to make sure they are aware that their vehicles have the capability of using high-level ethanol blends,” said FFV Awareness Campaign Manager Burl Haigwood. “Educating drivers about fuel choice will result in proper refueling and protect ethanol’s stellar 30-year marketplace reputation.”
The Alliance of Automobile Manufacturers CEO Mitch Bainwol says they represent 12 companies of FFVs that see the need for consumer education. “FlexFuel Vehicles are a growing segment of the auto pool. We are pleased to help sponsor this project to increase the use of alternative fuels like E85 and in so doing, educate drivers to avoid the potential for misfueling.”
FFV Awareness Campaign supporters noted that reaching drivers in cooperation with the DMVs is essentially a no-to-low cost means to help states meet their goals to reduce petroleum use, support new biofuel technologies, and improve air quality. The Alliance now joins EPA, USDA, several Clean Cities Coalitions, and over 30 Ag/Energy/Environmental organizations that support the FFV Awareness Campaign.
Agriculture Secretary Tom Vilsack laid out the Obama administration's priorities for a farm bill on Monday speaking at a John Deere plant in Ankeny, Iowa.
Vilsack has frequently said the Obama administration would not propose a farm bill like the Bush administration chose to do in 2007. But the administration did in fact lay effectively lay out a farm bill when it proposed $33 billion in cuts to farm programs. The Obama plan proposed in his jobs bill would eliminate direct payments to save $30 billion, as well as include $8.3 billion in cuts to crop insurance. Another $2 billion would be saved in conservation. That's $40.3 billion in total cuts to agriculture programs, but the plan would also extend the SURE program through 2016, which would negate some of the savings.
USDA provided a text of Vilsack's speech.
Vilsack noted the expected $1.5 trillion in budget cuts over 10 years expected to come from the Super Committee process would put "considerable external pressures" on the farm bill. The $23 billion in proposed cuts by the House and Senate Agriculture Committees also "are by no means final," but highlight that there will be challenges to any major program expectations. Agriculture will have to do more with less.
In highlighting some priorities, Vilsack said the farm bill needs to maintain a strong safety net, support sustainable productivity, and promote vibrant markets.
He pointed to some of the major disasters this year in pointing out the need for the safety net.
“This year I visited farms across the country who were devastated by natural disasters. I met farmers this spring who were never able to plant a crop because their land was flooded. I saw fires and droughts in the southwest destroy forests and grazing land. And this fall I stood in fields of fruits and vegetables that were ready for harvest but were ruined by Hurricane Irene. It was a visceral reminder of how important the safety net is for our farmers, ranchers, and our producers.
A safety net has to be timelier than the permanent disaster program has proven to be. It also has to be simpler than the Average Crop Revenue Election program. The programs, including crop insurance, also have to work for a broader array of farmers and livestock producers.
"It's got to work for row crop farmers in Iowa, specialty crop producers in upstate New York, cattle ranchers in Texas, or rice or cotton farmers in Louisiana."
The safety net also has got to be accountable to the 98 percent of us who do not farm, he said. It needs to consider long-term problems as well, including the age of farmers. More beginning farmer programs are needed because agriculture is effectively an aging profession.
“We'll need a community effort to recruit, train, and support this new generation of farmers and ranchers; and we need to make sure that it's for operations of all sizes.
Vilsack also discussed the importance of "sustaining agricultural productivity and research funding.
“Public funding for agricultural research has remained basically flat-lined since the 1990s, clearly not keeping pace with other federally-supported research; and a recent USDA study sounded a warning signal to all of us that there is a direct link between increases in agricultural investment on research and agricultural productivity. If we continue to flat-line our commitment to research, our productivity will likely suffer; this at a time when our productivity will have to continue to increase to meet the global demand for food.
Everyone in America is talking about jobs. From President Obama to local officials, policymakers around the country are searching for a strategy that will put Americans back to work.
At the same time, America is facing an energy crisis. With our economy so dependent on foreign oil, we risk a double-dip recession every time a crisis in the Middle East or an OPEC leader sends the price of oil skyrocketing.
As it turns out, the answer to both these problems has been right in front of us all along. Ethanol - made right here in America - already is creating jobs that cannot be outsourced and displacing foreign oil with a clean, renewable and uniquely American fuel.
Today, there are economic studies proving that the ethanol industry supports more than 600,000 American jobs directly and indirectly. You probably know someone who owes their job to this homegrown, renewable fuel. Those are jobs that never can be sent overseas. At Poet Bio Refining of Hudson, we directly support 41 new jobs and indirectly support countless local farmers and producers.
Additionally, American-grown ethanol last year replaced the need for 445 million barrels of foreign oil. That's more oil than we import from Saudi Arabia.
But oil still holds a monopoly over our fuels market. We continue to import about two-thirds of our fuel and spend more than $300 billion a year on foreign oil. That's more than $1,000 for every man, woman and child in this country. And unemployment in this country is still more than 9 percent.
It's time to explore the full potential of ethanol. One study showed that simply by moving to E15 we could create as many as 136,000 jobs across the country. Long term, investment in infrastructure would bring that number even higher and help free us from our addiction to foreign oil. If every vehicle in the U.S. were Flex Fuel capable, and every fueling station had Flex Fuel pumps, we could open the fuels market and give every American a genuine choice at the pump.
It's time to invest in homegrown, renewable energy that will put Americans back to work and get our economy back on track.
The Alternative Fuels and Advanced Vehicles Data Center (AFDC) offers widgets about alternative fuels and advanced technology vehicles. Get these widgets for your website, blog, or social networking site so your readers can access current information from the AFDC. Also find more widgets from the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy.
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Discovery Market is bringing something new to Casa Grande. Not just the name, which it shares with its sister location in Coolidge, but the availability of E85 fuel.
E85 is used in the new flex-fuel vehicles being offered by several manufacturers. Owner Mike Mennenga said it’s been a popular offering at the Coolidge store and he expects it to sell well in Casa Grande, too.
“The E85 usually runs at least 20 cents a gallon less than regular fuel,” Mennenga said. The store also offers propane and diesel fuel.
Discovery Market, which sells Chevron brand fuel, opened Oct. 13 at 2128 E. Florence Blvd., just east of Golden Corral. It is open 24 hours a day and has 5,000 square feet from which it sells typical convenience-store products. By the end of the year, it also will house Nico’s Taco Shop and Little Caesars Pizza. Mennenga said that with those shops included, the store will have about 40 employees.
“We have a big 2-acre lot with plenty of room for people pulling trailers,” Mennenga said.
WASHINGTON, D.C. -- The Petroleum Marketers Association of America (PMAA) is lending its voice to support the efforts to gain tax parity for E85. The trade group has joined the Coalition for E85 to help educate policymakers about the alternative fuel.
The coalition is a group of retailers, producers, equipment manufacturers and others in the industry formed to a campaign to protect the 2,500 small businesses that have invested in the ethanol fuel and halt a multimillion dollar tax hike on consumers, as CSNews Online previously reported.
"If we don't enable E85 to compete with gasoline, we could see the entire flex-fuel industry disappear," said Dan Gilligan, president of PMAA. "Our members, automakers and nine million American drivers have invested in E85 infrastructure and flex-fuel vehicles. With E85 so close to self-sustainability, these investments must be protected."
E85 is the most widely adopted alternative fuel, according to PMAA. It is derived from ethanol, but is not a fuel additive. As defined by the Energy Policy Act of 1992, E85 falls into the alternative fuel category with compressed natural gas, propane and hydrogen. Those fuels receive a 50-cent-per-gallon tax credit as part of the Alternative Fuel Credit and E85 should receive the same tax treatment, the trade group said.
In addition to PMAA, the Coalition for E85 includes Propel Fuels, Protec, Clean Fuels Development Coalition, Pearson Fuels, AMERigreen, Petro Serve USA and multiple ethanol industry associations.
UPDATE: Oct. 19 – McCain withdrew his proposal before the Senate could vote on whether to attach it to the agriculture appropriations bill. No reason was provided.
Senator John McCain offered an amendment on Tuesday to an agriculture bill that would prevent the government from subsidizing new service station pumps that would boost the sale of ethanol for motor vehicles.
McCain's amendment would prevent the federal government from funding so-called "blenders' pumps" in the 2012 agriculture appropriations bill, which could be voted on as soon as later on Tuesday.
"In these tight economic times when we are asking families to do more with less, we should not be subsidizing gas pumps at retail gas stations," Brian Rogers, a spokesman for the Arizona Republican, said. "The ethanol industry needs to prove it can prosper on its own and quit asking for taxpayer handouts."
The corn ethanol industry and oil companies that mix the fuel into gasoline will likely lose $6 billion a year in subsidies when a blenders' tax credit expires at the end of the year.
Ethanol producers say the pumps, which allow consumers to choose their own blends of ethanol in gasoline, would increase sales to drivers of cars that are specially built to accept higher levels of the fuel. Car makers are expected to make far more of the so-called "flex fuel" cars in coming years.
The producers slammed the amendment. "The McCain amendment would smother the only initiative we have to provide consumers the power to choose their fuel, and it gives OPEC the green light to tighten its grip on our economy at the worst possible time," said Growth Energy CEO Tom Buis.
Considering it was the first year that the USDA allowed Rural Energy for America Program funds to be used for blender pump installations, and considering that officials had just two months to get the word out to potential applicants and guide them through the process, the end result was not bad. In total, blender pump projects received less than $3 million of the total $38.6 million in REAP grants and loans the USDA awarded to hundreds of projects in rural areas throughout the U.S. this year. But 54 blender pump projects, and even more actual pumps, will be installed as a result of the funding assistance.
Secretary of Agriculture Tom Vilsack has been an aggressive crusader for the expansion of biofuels infrastructure since last fall when he declared a goal of establishing 10,000 blender pumps throughout the U.S. over the course of five years. In announcing the REAP awards, he noted that the expansion of biofuels infrastructure supports the Obama administration’s vision of building a clean energy economy and providing much-needed jobs for people in rural areas. “This funding is an important part of the Obama administration’s plan to help the nation’s farmers, agricultural producers and rural small businesses conserve natural resources, create more green jobs and lead us on the path to becoming an energy independent nation,” he said.
While there are notably few blender pumps across the country, agriculture-centric Midwestern states have the greatest numbers, and that is also where most of the REAP funding will be used to install more. In Wisconsin, for example, United Cooperative plans to use a $448,500 REAP grant to install 33 ethanol blender pumps and 17 biodiesel dispensers in the south-central part of the state. Six projects in Missouri received a total of more than $290,000 in REAP grants. Meanwhile California, which has more flex-fuel vehicles on the road than any other state, received just $135,000 for four projects. One unfortunate caveat to the REAP program that automatically rules out urban applicants is that projects must be located in areas with populations of 50,000 or less in order to qualify. Vilsack made it known that he was aware of this issue when he announced the first round of REAP awards in August and said that USDA officials were working with other programs within the agency to determine whether other types of funding could be made available.
ROCHESTER, Minn. — Flexible fuel vehicle drivers in southeast Minnesota have another place to fill up.
The Sinclair station at 205 Sixth St. S.W. in Rochester installed a blender pump earlier this year, becoming the first station in Rochester to offer different blends of ethanol. The station has four pump dispensers, so every pump offers E85, E50, E20 or regular unleaded gasoline, which in Minnesota contains a 10 percent blend of ethanol.
Station co-owner Josh Severson said they didn't install the blender pump with the intention of being the first in the city of Rochester, rather they happened across a station in Wisconsin with blender pumps and decided to try the same thing here.
"We wanted to try something different," said Severson. He co-owns the station with his father, Tom, and sister, Josi. They also own Severson Oil Company, which distributes gas, diesel, home heating fuel and lubricants throughout southeast Minnesota and western Wisconsin.
Business at the pumps hasn't been as brisk as they hoped for when they installed the pumps in January or February, Severson said. He wonders if people know they have a choice in Rochester.
Tuesday, October 11, 2011
Coalition for E85 Forms to Protect Consumer Access to America’s Most Widely Used Renewable Fue
Industry leaders join to fight for tax parity with other alternative fuels and reduce dependence on foreign oil
(October 11, 2011) WASHINGTON D.C. – A coalition of retailers, producers, equipment manufacturers, and others today announced the formation of the Coalition for E85 – a campaign to protect the investments of 2,500 small businesses, and stop a multi-million dollar tax hike on consumers.
If the current tax credit for ethanol fuel expires at year’s end, millions of Flex Fuel vehicle drivers will pay as much as 38 cents more per gallon. This increase will force many small businesses that have invested more than $100 million in E85 infrastructure to close their pumps.
“E85 is not only an alternative fuel, it is our nation’s most widely adopted alternative fuel,” said Matt Horton, CEO of Propel Fuels, one of the lead members of the Coalition for E85. “If we are to make a meaningful dent in our dependency on foreign oil, we must expand E85 infrastructure and ensure this fuel has fair tax treatment.”
As the leading alternative fuel choice at the pump, E85 Flex Fuel has the potential to provide 9 million American drivers a clean fuel option, while making progress toward freeing our country from its foreign petroleum dependency. The Internal Revenue Service needs to recognize that E85, or fuel made of 85 percent ethanol, isn’t an additive, but a true alternative fuel like natural gas or propane.
E85 also provides a platform for advanced biofuels. E85 can be made from non-food sources such as farming byproducts, algae biomass and household waste. The federal government has invested deeply in development and commercialization of these next-generation biofuels, but without E85, such innovations may never be fully developed.
“The impacts on the price and availability of E85 will be dramatic,” said Todd Garner, CEO of Protec Fuels, a member of the Coalition for E85. “We must not abandon E85 this close to self-sustainability. We hope retailers, producers, auto makers, and others concerned about the future of E85 will stand up and fight with us. Join the Coalition and let our government’s leaders know why E85 is critical.”
Currently other alternative fuels such as compressed natural gas, propane and hydrogen receive a $0.50 per gallon tax credit as part of the Alternative Fuel Credit. The Coalition believes E85 should be included in this group. The Coalition for E85 currently includes Propel Fuels, Protec, Clean Fuels Development Coalition, multiple ethanol industry associations, pump and tank companies, and individual E85 retailers. For more information, or to join the Coalition for E85 contact info@CoalitionforE85.com.
Monday, October 10, 2011
New E85 and Flex Fuel Stations
There are 2,458 E85 and 310 flex fuel installations across the country.
The Navy Exchange Service Command (NEXCOM) has partnered with Protec Fuel to provide more 85 percent ethanol fuel to flex fuel vehicle (FFV) drivers in Pensacola, Florida.
NEXCOM opened its sixth E85 station on a U.S. Navy base at Naval Air Station Pensacola this week. This facility will provide access to E85 fuel for the Navy’s fleet of FFVs as well as the general public.
“We are proud to offer E85 as a preferred choice of energy to drive our country, improve our environment and reduce our country’s dependency on petroleum,” said Larry Boone, NEXCOM’s Automotive Program Manager. “The U. S. Navy is a leader in the use of alternative fuels, including ethanol and biodiesel.”
Florida-based Protec Fuel managed the E85 installation and provides the new greener burning fuel offering at the Navy Exchange (NEX). Protec and NEXCOM alsoopened two other stations together last year in Virginia.
“We are proud to work with the Navy and NEXCOM to offer this American fuel,” said Steve Walk, an Executive Director of Protec Fuel. “NEXCOM is providing a cleaner burning option for its customers, the Navy, and Pensacola drivers.”
The new Pensacola facility helps the Navy meet the Federal Leadership in Environmental, Energy, and Economic Performance Executive Order under President Obama’s direction, setting a goal of reducing petroleum use in the federal fleet.
Rochester's first blender pump, at the Sinclair station at 205 Sixth St. S.W., lets consumers select the blend of ethanol they want.
But business hasn’t been as brisk as the owners hoped since the pumps were installed early this year, so some corn growers helped draw attention to the pumps Thursday with a special event. Ethanol is made from corn.
At the pumps, consumers can choose to run either E85, E50, E20 or regular unleaded gasoline, which in Minnesota contains a 10 percent blend of ethanol.
“We wanted to try something different,” said Josh Severson, who owns the station with his father, Tom, and sister, Josi. They also own Severson Oil Co.
E85 also produces less air pollution. Read about it in Friday's print edition.
Thanks to the adoption of direct fuel injection, teaming gas and ethanol has the potential to beat diesel efficiency.
We can hear your groans already: Our federal government’s effort to curb oil imports by lacing gasoline with ethanol has been a boon to American farmers but a bust to the driving public. The problem is simple economics—pumping E85 (85-percent ethanol and 15-percent gasoline) into today’s flex-fuel cars costs more per mile than fueling the same car with regular gas. We’re suffering from ethanol’s detriments without exploiting its advantages.
Ethanol’s balance sheet has been well understood for decades. Because ethanol’s energy density is roughly 66 percent that of gasoline, mpg suffers when ethanol is used as a straight substitute. On the opposite side of the ledger, ethanol has an octane rating of 100, versus 85 to 100 for gasoline, enabling much higher compression ratios. (Unleaded, 100-octane racing gas is expensive and not widely distributed. Readily available premium gas tops out at 94 octane.) And when ethanol changes from liquid to gas on the way to combustion, it absorbs 2.6 times more heat than gasoline, a highly beneficial cooling effect. So how do we take advantage of those attributes to optimize ethanol’s role in modern transportation? The history books are a good place to start.
During World War II, BMW and Daimler-Benz sprayed methanol and water mixtures into their supercharged aircraft engines to forestall detonation (premature ignition of the fuel-air charge). In the U.S., a postwar GM applied similar research in its 1951 LeSabre dream car, which was powered by a supercharged V-8 capable of running on gas or methanol. That paved the way for the 1962 Oldsmobile F-85 Jetfire, the world’s first turbocharged production car, which used “Turbo-Rocket Fluid”—a mix of water, methanol, and rust inhibitor—to skirt detonation with a then-ambitious 10.25:1 compression ratio and 5.0 psi of boost.
Today’s racers use all manner of fluids—water, alcohol, nitromethane, lead substitutes, and nitrous oxide—in pursuit of power. There’s also a government-backed experiment at Chrysler aimed at running both gasoline and diesel fuels through the same engine. But the most sensible approach for the public at large is to use technology now in hand to achieve significant mpg gains. The tech? Gasoline, E85, and direct fuel injection.
British-based Ricardo and Ethanol Boosting Systems (EBS) of Cambridge, Massachusetts, both have E85-fueled engines under test that deliver diesel efficiency—at least 30-percent better than a typical gas engine—without the need for cumbersome, ultra-high-pressure fuel-injection and exhaust-treatment equipment.
The Nebraska Ethanol Board is co-sponsoring racing events this weekend at the Kearney Raceway Park in Kearney, including quarter-mile drag races with cars powered by E85.
As part of this weekend’s events, two Bosselman’s Pump & Pantry locations in Kearney will offer an 85 cent per-gallon discount on E85 and a free 32 oz. soft drink with a minimum 10 gallon purchase of E85. This special deal is good only on Sunday, October 2 from noon to 6 pm at the Pump & Pantry at 4311 N 2nd Avenue, and the Pump & Pantry at 1212 E 56th Street.
E85 is a blend of up to 85% ethanol with gasoline and can be used in Flex Fuel Vehicles. Visit the Nebraska Ethanol Board online for a list of E85 stations in Nebraska.
Saturday’s events include Test and Tune & NHRA Qualifying starting at 10 am, and Super Shootout & ST/SS Combo races beginning at 3pm.
Sunday’s events begin at 9 am with Time Trials & NHRA qualifying. Eliminations begin at 1 pm.
Starting times for races are subject to change due to weather. Check the Kearney Raceway Park website at www.krpi.com for entry and admission details. Download the flier here for more on the races.
The 2012 generation of the Nissan Armada is here and the SUV comes in three trim levels, the SV, SL and the Platinum, with 2WD and 4WD configurations, with an impressive towing capacity up to 9.000 pounds “when properly equipped”.
The three trim levels of the 2012 Armada come with the standard 5.6 liter DOHC Endurance V8 engine which is delivering 317 horsepower at 5.200 rpm and 385 lb-ft of torque at 3.400 rpm, mated to a five-speed automatic transmission. As an innovation, Nissan is offering for the “new” Armada the Flexible Fuel Vehicle (FFV) technology which allows the use of both regular fuel and E85 ethanol.
Nissan says that the 2012 Armada SUV is offered in seven exterior colors like the new Brilliant Silver or the Espresso Black, Tuscan Sun, Lakeshore Slate, Galaxy Black, Smoke and Blizzard, while for the interior its future customers will only have two choices: Almond and Charcoal.
The 2012 Armada comes with some safety features too like the standard ABS with EBD (Electronic Brake force Distribution, BA (Break Assist), ABLS, VDC (Vehicle Dynamic Control) available with a deactivation switch or the steering which is provided by an engine-speed-sensitive power-assisted rack-and-pinion steering system along with the Nissan Advanced Air Bag System (AABS), roof-mounted curtain supplemental airbags for side impact and rollover head protection, fron seat-mounted side-impact supplemental airbags and front seat Active Head Restraints.
The top-of-the-line Platinum version comes with heated front and 2nd row seats, heated steering wheel, power rear liftgate, moonroof, DVD Family Entertainment System, sat-nav with XM NavTraffic system with Real-Time Traffic Information (subscription required), Front Sonar System or the larger 20 inch aluminum wheels.
Besides the optionals available, the 2012 Armada also offers five packages, the Driver Package (SV 4×2) with Bluetooth Hands-free Phone System, fog lights, RearView Monitor, premium Bose audio system, XM Satellite Radio (subscription required), power lift gate and auto-dimming rearview mirror with HomeLink. The SV Tow Package (Armada SV 4×2) also adds a 7-pin wiring harness plug, the 2nd row Captain’s Seat Package (Platinum) which replaces the 2nd row bench seat with 2nd row Captain’s Chairs, 2nd row center console with padded armrest. The Moonroof package (SL) brings power tilt and glide moon roof, DVD Family Entertainment System (SL) with 8 inch rear display monitor, video port in the center console, DVD changer, remote controller and two wireless headphones.
According to the automaker, every 2012 Armada offers up to 14 cup holders, dual-zone and automatic climate control, along with some interesting new features. Nissan didn’t announce the price of the 2012 Armada yet and it says that the SUV has been assembled at the Nissan North America Manufacturing in Canton, Mississippi.
USDA Rural Development State Director Jasper Schneider announced last week that more than $140,000 in grants have been awarded to four recipients in North Dakota for renewable energy and energy efficiency projects under the Rural Energy for America Program (REAP).
Among the recipients was Gordy’s Inc., Mapleton, receiving a $35,704 grant to assist with the purchase and installation of five flexible fuel pumps, which will replace all the existing gasoline and diesel pumps.
Other recipients were: Town and Country Cooperative of Steele County (Cooperstown), $22,310, for fuel pumps; Dan Ecker Farm, Inc., Grandin, $50,000, for a new energy efficient dryer; and Joe Halvorson, Galesburg, $33,127, also for a new energy efficient dryer.
The energy program seeks to provide funding to projects that incorporate energy-saving practices into business operations. The grants will assist in replacing old, inefficient grain dryers which will provide energy and cost savings while preserving higher yields. In addition, the grants will be used to replace conventional gasoline pumps with blender pumps to offer customers a variety of ethanol fuel choices.
INDIANAPOLIS — Hoosiers will soon see new flex fuel pumps at a handful of Indiana convenience stores and gas stations funded by a grant program launched Wednesday by the Indiana Corn Marketing Council.
The pumps, also known as blender pumps, give Hoosiers with flex fuel vehicles the choice to use a variety of ethanol blends, including 20 percent (E20), 30 percent (E30) and 50 percent (E50) mixes of ethanol-to-gasoline.
"The Flex Fuel Pump Program allows consumers to select the type of ethanol blend they want to use in their flex fuel vehicle and take advantage of the potential cost benefits of using ethanol," said David Howell, a farmer from Middletown and vice president of the corn council.
The program offers new and existing retailers in Indiana grants of up to 50 percent or $20,000, which ever is less, of the cost of purchasing a flex fuel pump, hardware and storage tank. They can also apply the money to converting an existing pump into a flex fuel pump.
The four recipients of this year's grants are Little Point Auto and Truck Stop in Stilesville, Austin West-Side Sunoco in Austin, Eddie's Service in West Baden and Capital Express Mart in Granger.
Scott Imus, executive director of the Indiana Petroleum Marketers and Convenience Store Association, said it will likely be some time before the flex-fuel pumps are available at most stations.
Currently, about 100 to 125 pumps across the state offer e85, the most common ethanol blend, which is 85 percent gasoline and 15 percent ethanol, Imus said. The pumps purchased under the corn marketers' grants will likely be the first ones that offer other ethanol blends, he said.
Senators Maria Cantwell (D-WA) and Dick Lugar (R-IN) have introduced a bill that would ensure most new vehicles in the United States are capable of running on a range of domestically produced alternative fuels starting in 2015.
By introducing competition among fuels, the Open Fuels Standard (OFS) Act aims to bring about significant reductions in fuel prices paid by U.S. consumers. Transportation fuel choice could also sharply reduce U.S. dependence on foreign oil and reduce the $200 billion “monopoly premium” the Department of Energy calculates U.S. consumers currently pay to OPEC (Organization of the Petroleum Exporting Countries) and other foreign oil producers each year through excessive petroleum prices. Keeping this money within U.S. borders would sharply cut the U.S. trade deficit, safeguard U.S household income, and provide capital and market incentive for investment in new U.S. energy infrastructure.
“For too long oil has had a monopoly over transportation fuel and American drivers have had no choice but to pay volatile and elevated prices at the pump,” said Cantwell. “Phasing in vehicles that can run on fuels other than petroleum will allow a whole host of new domestic sources of transportation fuel to come online, which should reduce our dangerous overdependence on foreign oil and help keep American dollars here at home. I am encouraged by the broad bipartisan and stakeholder support for the Open Fuels Standard Act which I believe is a recognition that this approach will really help diversify our nation’s energy supply and spur investment and job creation.”
The Open Fuels Standard Act requires that starting in 2015, 50 percent of new vehicles manufactured or sold in the United States be flex fuel capable – meaning able to run on non-petroleum fuels such as domestically-produced ethanol or methanol or other alcohols in addition to, or instead of, petroleum-based fuels. In 2018, 80 percent of new vehicles would need to be flex fuel capable.
Growth Energy CEO Tom Buis said the legislation would help open the market, so that Americans have access to alternative fuels, like ethanol. “If we are ever going to reduce our dependence on foreign oil and allow consumers a fuel choice, we will need an open market. An open market will drive the investment into cellulosic ethanol and other biofuels,” said Buis.
The U.S. Department of Commerce’s District Export Council is providing an export assistance program for biofuel, biochemical and bioplastics companies. Companies can attend an education session being offered at the National District Export Council Conference on November 4, 2011 at Caesar’s Palace in Las Vegas, Nevada that will help bio-based product companies with exports. The education session will go over the basics of exporting for this industry sector and the numerous programs the government has to assist companies in the exporting process, the legal issues that companies need to be aware of and a case study from a company that successfully implemented an export program. After the session, speakers will be available to talk with participants. Additionally, companies can set up meetings with U.S. Foreign Commercial Officers, foreign consuls and commercial attaches from all over the world to discuss exporting opportunities. For companies wanting a more in-depth review of the exporting process, there will be a three day “Export University” program at the conference. For more information, please visit www.decconference.com or email Karen Parker at Karen.Parker@trade.gov.
Agriculture Secretary Tom Vilsack announced loans and grants for more than 500 agricultural producers and rural small businesses this month to implement renewable energy and energy-efficiency measures.
“These projects are in addition to the more than 900 renewable energy and energy-efficiency projects recently announced during the President's Rural Economic Forum,” Secretary Vilsack said.
The grants and loan guarantees are provided through the Rural Energy for America Program (REAP), a 2008 Farm Bill initiative. REAP offers funds for farmers, ranchers and rural small businesses to purchase and install renewable energy systems and make energy-efficiency improvements. These funds leverage other funding sources for small businesses. USDA has announced more than $27 million in energy grants and guaranteed loans for projects to date.
United Cooperative, Beaver Dam, WI, is one of the businesses that was selected to receive a REAP grant. This $448,500 will help with the installation cost of 33 ethanol flex-fuel dispensers and 17 biodiesel dispensers. United Cooperative is a full-service cooperative providing feed, grain, agronomy and energy products to farmers and consumers in south-central Wisconsin.
The Obama administration has set a goal of making 10,000 new flex-fuel pumps available to America's drivers within the next five years — five times today’s level. USDA is working to support the research, investment and infrastructure necessary to build a nationwide biofuels industry that creates jobs in every corner of the country.
Funding of each award is contingent upon the recipient meeting the conditions of the grant or loan agreement. Grants can finance up to 25% of a project’s cost, not to exceed $500,000 for renewable and $250,000 for efficiency. For a listing of Rural Energy for America Program recipients announced today, click here.
here are two main strategies to meet President Obama’s goal of reducing the nation’s dependence on foreign oil by one third within the next 10 years, Secretary of Agriculture Tom Vilsack told members of Growth Energy on Sept. 21. The first is becoming more efficient with the fuel used. The second strategy is creating alternatives to foreign oil. “[That means] alternatives that are home grown,” he said. “Alternatives that help to create jobs here in America. Alternatives that provide better bottom lines for farmers and producers around the country. And that’s what your industry is doing—that’s what you are advocating for.”
Vilsack gave a keynote address at Growth Energy’s invitation-only Second Legislative Conference, held Sept. 19-21 in Washington, D.C., office. Besides conducting the organization’s annual business meeting, the event provided an opportunity for Growth Energy members to meet with members of Congress.
To reach the 36 billion gallon mark, as specified in the renewable fuel standard, the country will need to reduce its reliance on foreign oil by 18 percent, Vilsack said. That adds up to about the same amount that’s currently imported from the Middle East. The fact that the U.S. has a choice, that it isn’t compelled to import petroleum, isn’t something that he thinks the American public fully understands. “We can either create opportunity here, or fuel opportunity elsewhere,” he said. “And there is no better opportunity in my mind to help revitalize a rural economy that is need of revitalization than this industry.”
Vilsack outlined some of the ways the USDA has tried to “aggressively promote and advance” the alternative energy industry. Two of those methods include funding for blender pumps through the Rural Energy for America Program and the Biomass Crop Assistance Program,which provides up to 75 percent reimbursement for farmers cost to establish energy crops.
With legislators gearing up for a big budget fight, those two programs are in danger of being cut or drastically reduced, Vilsack said. The USDA budget that recently went through the U.S. House of Representatives, for example, only included a couple million for REAP funding, just a fraction of the program’s current funding level. Vilsack requested that Growth Energy members speak to lawmakers about the importance of REAP to the ethanol industry while they talk about the importance of the ethanol industry to rural America. He also mentioned concerns that the importance of BCAP would be forgotten in budget discussions on the 2012 farm bill. “Absent your advocacy it is possible that REAP doesn’t get funded adequately and BCAP goes away,” he said.
BISMARCK, N.D. — A state Commerce Department official says many North Dakotans who drive so-called "flex-fuel" vehicles don't even know it.
They're among the people who are the intended targets of a proposed marketing campaign to increase ethanol sales.
North Dakota's Industrial Commission has approved a $200,000 grant for the project.
Renewable energy program manager Andrea Pfennig says the campaign will be aimed at getting flex-fuel vehicle owners to use more ethanol in their gasoline.
Flex-fuel vehicles can burn ethanol blends of up to 85 percent. The ethanol blend at most North Dakota pumps is 10 percent.
But some stations now have "blender pumps" that allow motorists to use more ethanol. Pfennig says the goal is to get flex-fuel vehicle drivers to use 30 percent ethanol blends or more.
When the fall quarter starts at Peninsula College on Sept. 26, students will be able to enroll in a one-year certificate program in Alternative Fuels, one of only a few to be offered in the country.
The program will admit 15 students each year, said Mike Hansen, Automotive Technology program coordinator and instructor.
The 54-credit curriculum includes components for vehicles in the following categories: hybrid and electric, compressed natural gas, propane, bio-diesel, flex fuel and ethanol-powered.
Students also study science and math in addition to automotive technology.
In coming years, the curriculum also may include instruction in other types of alternative fuel, such as the possibility of generating fuel out of bio-waste.
The program got a boost last year when Peninsula College was awarded a $150,000 National Science Foundation Advanced Technology Education Small Projects Grant. The two-year grant, which started in October 2010, provides $75,000 each year to the college.
Although Peninsula College has received other foundation grants, this is the first awarded specifically for advanced technology education and is the first-level grant for institutions that previously have not received foundation Advanced Technology Education grants.
“We’re very proud to be among the few colleges in the country to receive the NSF ATE grant,” said Peninsula College President Dr. Thomas Keegan. “It fits very well into our strategic priorities of environmental sustainability and providing leadership and support for rural economic development. It also will place us at the forefront in training men and women for careers in the rapidly expanding field of alternative fuel vehicles.”
Hansen said he has big plans for his Alternative Fuels program. In addition to the one-year certificate, he also is investigating enhanced program delivery methods, such as online and hybrid courses (a combination of online and face-to-face labs) as well as streaming video that will address the needs of time- and place-bound students, incumbent workers, automotive technology graduates and advanced automotive technology students.“Once we have delivered the Alternative Fuels curriculum to our own students and enhanced it, the curriculum will be available to other automotive programs across the country,” Hansen said.
‘Trainer’ program going strong
Peninsula College also has a “Train the Trainer” program in hybrid and electric vehicle technology, now in its second year. This summer’s program drew professionals from all over the United States as well as British Columbia, Canada, who studied fundamental and advanced electric propulsion concepts, which blend traditional engine and electric propulsion torque, system design, basic and enhanced diagnostic considerations, and special service topics of HEVs.
Existing HEV production vehicle architectures from Ford, Honda, Lexus, Toyota and GM are used as case studies.
The instructor for the three courses in the program is Dr. Mark Quarto, engineering group manager for advanced powertrain technology systems for General Motors Corporation Global Aftermarket Engineering. The curriculum was developed by American Research and Design.
“We’re very pleased that so many trainers have enrolled,” Hansen said. “We’re one of only a very few colleges in the country to offer this kind of in-depth training to other instructors and the fact that we are drawing students from all across the country and internationally speaks to the need for this type of instruction.”
Growth expected
Hansen says he expects the program to continue to grow as more hybrids and alternative fuel vehicles hit the market. In fact, he notes, next year’s expanded training sessions already are set and will be held on the college campus July 9-13 and July 16-20, 2012.
Quarto has been engineering, managing and teaching electric and hybrid electric vehicle systems for 26 years and has a patent pending for a hybrid electric vehicle power generating system.
He received his doctorate in technical education from Nova Southeastern University, specializing in designing and developing learning systems for hybrid/electric vehicles and high voltage energy and propulsion systems.
For more information on the program, call Hansen at 417-6540.
E15, the gasoline pump label, is approved. But E15, the fuel, probably will not be widely sold for several months at the earliest in Illinois.
The U.S. Environmental Protection Agency recently OK’d labeling requirements for the newest blend of 15 percent ethanol and up to 85 percent gasoline. The black-and-orange labels have been shared with state regulators.
Just when E15 fuel would go on sale at the local convenience store remains difficult to tell at this point, said Jonelle Brent, bureau chief for weights and measures with the Illinois Department of Agriculture.
“A lot of it is still to be decided at the federal level,” said Brent. “The fuel still has to be certified and registered.”
Brent’s division is responsible for ensuring the accuracy of the state’s gas pumps. But she said it is up to federal regulators to set standards for the fuel.
The Illinois Corn Growers Association praised the EPA label approval, which also had been the subject of controversy as to whether the language on the labels should be strictly informational or more of a warning to motorists.
“It is a label that informs instead of instills fear,” association president James Reed said in a statement.
Limited sales
Illinois Corn Marketing Board director of research and commercial development Dave Loos said he believes the EPA will approve registration of E15 by the end of this year or early 2012. But he said he expects initial sales to be limited.
“I don’t think you’ll see the major oil companies selling it right away,” said Loos. “I think you’ll see some of the independents putting it in their stations because they’ll see it as a niche market for them.”
He said E15 is available at a few so-called “blender” pumps in the state but can only be burned in flexible-fuel vehicles that also can burn E85.
The corn growers have started a cross-marketing partnership with NASCAR, and on Friday Loos was part of an E15 information and promotional program at a racetrack in Joliet.
“They’ve optimized their vehicles for E15, but it wasn’t a big jump for them or a big leap,” said Loos. “It’s increased performance slightly because of the ethanol. So far, they like it.”
Thirty-three projects in 22 states have been approved for blender pump grants in the latest round of funding to be dispersed through the USDA’s Rural Energy for America Program. A total of $27 million in grants and loan guarantees for various energy-related projects were announced by the USDA on Sept. 16. Blender pump projects comprise about $2 million of that amount. The latest announcement brings the total number of blender pump projects to receive REAP support to 54. In August, the USDA announced 900 smaller REAP awards, of which 21 were granted to blender pump projects.
This was the first year that blender pump projects were eligible to apply for REAP funding. The USDA set a goal in 2010 of establishing 10,000 blender pumps throughout the U.S. in the next five years. Allowing blender pumps to qualify for REAP funding is one of several strategies the agency has deployed in order to make the 10,000-pump goal more attainable.
The agency said that by building the infrastructure for biofuels it is assisting in supporting the nation’s clean energy economy and helping to create jobs. “This funding is an important part of the Obama administration’s plan to help the nation’s farmers, agricultural producers and rural small businesses conserve natural resources, create more green jobs and lead us on the path to becoming an energy independent nation,” Secretary of Agriculture Tom Vilsack stated.
Missouri received the most awards for blender pumps in the Sept. 16 round of funding. Four projects in that state were approved for a total of $254,212. Iowa and Kansas were the runners-up with each state receiving approval for three blender pump projects at a total of approximately $100,000 for each state. In North Dakota, where there are already more blender pumps than in any other state, two projects will receive a combined $58,000 in grants.
A Wisconsin project will receive the single largest blender pump REAP award. United Cooperative, a full-service co-op that services south-central Wisconsin farmers and consumers, was awarded $448,500 to assist in the installation of 33 ethanol blender pumps and 17 biodiesel dispensers.
Funding of each award is contingent upon the recipient meeting the conditions of the grant. Grants can be used to finance up to 25 percent of a project’s cost, or no more than $500,000 for renewables projects. A complete list of the awards announced Sept. 16 can be viewed here.
Equipment manufacturer Gilbarco announced this morning that it has expanded its Encore family of flexible fuel dispensers with new models that are compatible with fuels containing up to 25% ethanol.
The company noted that all standard flow Encore S dispensers are now available with hydraulic components that are compatible with E25.
"In addition, the new Encore S 3+1+1 blender fuel dispenser offers a unique configuration that expands the site's flexibility to offer the maximum number of products at the same fueling position," Gilbarco explained.
"Retailers are requesting products that provide flexibility in the fuel choices they can offer their customers," said Chad Johnson, marketing manager at Gilbarco Veeder-Root. "Increasing consumer demand for ethanol and other alternative fuels allows Gilbarco to support our customers' desires to supply a full range of fueling options. The Encore series flexible fuel dispensers give retailers the flexibility to offer their customers maximum choice," he added.
The Encore S with the E25 option has been approved by both Underwriters Laboratory and the National Conference on Weights and Measures, and the groups have also approved the dispenser up to E85.
The models are for use with flexible fuel vehicles, which can run on higher ethanol blends up to 85%.
Gilbarco plans to exhibit the Encore S 3+1+1 model at the National Association of Convenience Stores Show, next month in Chicago.
Thursday, September 15, 2011
Recipients in Grayson County to benefit from over $1.2 million in USDA Rural Development funding
TEMPLE, TEXAS, September 14, 2011 – USDA Rural Development State Director, Paco Valentin, with Area Director Allen Lambright, today presented ceremonial checks totaling over $1.2 million to four benefactors throughout Grayson County.
“These funding presentations represent the diversity of assistance USDA Rural Development can provide to communities to increase the quality of life for residents and businesses in rural Texas,” said Valentin. “From water system upgrades to energy efficiency improvements, Rural Development is pleased to assist these recipients by providing the needed funding to their communities.”
Royce Richardson, owner of R&M’s RV, Boat and Self-Storage of Whitewright, was the recipient of a Rural Energy for America Program (REAP) Grant through Rural Development. The $5,871 grant will allow Richardson to construct a 2.4kw wind system that will offset the electricity used for his business and provide significant energy savings throughout the year.
The Van Alstyne Economic Development Corporation (EDC) was awarded a $99,900 Rural Business Enterprise Grant (RBEG) to create a revolving loan fund that will assist small and emerging businesses with the city of Van Alstyne. This program helps finance new and existing businesses, as well as employment-related adult education programs. RBEG funds can be used for start-up and working capital loans, building and plant renovations, transportation improvements, project planning and other business needs.
W. Douglass Distributing, Ltd., of Sherman, received a $11,829 grant through Rural Development’s Rural Energy for America Program. The company plans to use the funding to purchase a flex fuel gas pump to replace on older conventional pump. The new pump will dispense fuels containing up to 85% Ethanol (E85), for an estimated energy savings over $11,000 per year. The new E85 pump will be available to the public.
As more retailers are considering adding the addition of E85, a blend of 85 percent ethanol and 15 percent gasoline, they can look to the ethanol industry for support. Growth Energy is now offering retailers a complimentary flex fuel promotion kit that includes:
Pump topper
Nozzle talkers
Decals to educate motorists on mid-level ethanol blends
New E15 label recently approved by the EPA
E85 labels for Flex Fuel vehicles
Retailers who are interested in receiving the free kit can visit Growth Energy’s online store and click on the “FREE Amer. Ethanol Station Kit” tab. In addition to the above materials, the kit also contains a brochure holder for retailers to provide consumers additional facts about the benefits of ethanol.
“American Ethanol’s partnership with NASCAR provides unique visibility for ethanol blends. We are pleased to offer these station kits to retailers to provide consumers with the same fuel that their favorite NASCAR drivers use on the track,” said Growth Energy CEO Tom Buis.
(Louisville, KY – September 13, 2011) Thorntons is excited to announce the launch of their brand-new proprietary free mobile phone app available for iPhone, Android and Blackberry users. The mobile phone app, powered by OpenStore&™ by GasBuddy, is free for all Thorntons customers at http://thorntons1.com/MobileApps.aspx
"Thorntons consumers are extremely tech-savvy and more mobile than ever,” said Matt Thornton, President & CEO of Thorntons Inc. “The creation of this app will enable them to have Thorntons with them 24/7. Along with the multitude of features our app offers, Thorntons customers will stay fully informed of our daily and weekly promotions, gas price alerts, and be able to manage their FREEquency Rewards card, to name just a few of the options,” he noted.
Once the app has been downloaded, customers will be able to stay on top of everything going on with their neighborhood store, as well as the over 160 Thorntons located throughout the Midwest. The app displays locations, in-store promotions, food menus and much more while customers can send feedback, review job postings, and receive time-sensitive electronic mobile coupons. Specific app features include:
The Thorntons Mobile App GPS
Find the closest Thorntons stores and get directions from your current location. Find nearby stores based-on city and state, or zip code. Whether you need a full tank of high quality gasoline, a Fabulous Fountain Drink, a Great cup of Coffee or a freshly made sandwich or wrap, there is always a Thorntons store close by and the Thorntons Mobile App will quickly and easily guide you there.
Store Features and Services
Find a station with a particular fuel type you need (e.g., diesel, e85 or kerosene) or locate the nearest 24-hour Thorntons store. With the Thorntons Mobile App, it couldn’t be easier.
Gas Price Alerts
Sign up to receive instant gas price alerts before prices rise at any Thorntons location via push notifications.
Promotions Alerts
Sign up to receive instant alerts about special promotions and deals. With our unsurpassed convenience of location, location, and more locations throughout the Midwest, the Thorntons Mobile App makes it easier than ever to stop by to taste our freshly made sandwiches, wraps, Fabulous Fountain drinks and more. Or, simply pick up the essentials like milk and bread. Then drive away with ease knowing you have a full tank of high quality Thorntons gas!
FREEquency Rewards
Add your FREEquency Rewards card to your phone and throw that key fob away!
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About Thorntons Inc. Founded by Kentucky native James H. Thornton in 1971, Thorntons Inc. is one of the leading independent gasoline and convenience chain retailers in the U.S., currently operating throughout the Midwest under the brand name Thorntons. With over $1.7 billion in revenue, Thorntons is one of largest privately held corporations in the Commonwealth of Kentucky. Headquartered in Louisville, Kentucky, Thorntons operates over 160 gasoline and convenience stores, car washes and travel plazas in five states: Kentucky, Illinois, Indiana, Ohio, and Tennessee. Thorntons distributes its petroleum products through its wholly owned Thornton Transportation Company and operates a river bulk storage terminal in Louisville. For more information visit http://thorntonsinc.com and follow us on Facebook at http://facebook.com/thorntonsinc and Twitter at http://twitter.com/thorntonsinc.
OpenStore&™ by GasBuddy is a powerful solution that increases customer loyalty by providing much needed two-way communication with customers using leading edge web technologies and custom branded mobile applications. The OpenStore&™ dashboard makes it easy to collect customer feedback, manage social media, and deliver mobile coupons and text message campaigns all from one single location. OpenStore enables brands and convenience stores old-fashioned loyalty from customers in a new-fashioned way. See http://www.openstoreloyalty.com/ for more details.
Missouri, Michigan and Kansas are a few of the states actively working to increase the number of blender and E85 pumps, increasing consumer access to the renewable fuel. Funding for this is available through a variety of federal, state and local programs, including the USDA’s Rural Energy for America Program.
In August, USDA Rural Development Business Program Administrator Judy Canales recognized Missouri for the approval of 26 biofuel pumps at fuel retailers—more than any other state in the nation. The pumps will be installed through a program with USDA Rural Development and a partnership with the Missouri Corn Merchandising Council, the Association of Missouri Electric Cooperatives and the Missouri Department of Agriculture. "Missouri's unique team is leading the nation in applications, but more importantly, in actually making this work," Canales said. "But this is not the end of a campaign. This is step one. Our goal is 10,000 blender pumps [in the nation] over the next five years."
Flex-fuel vehicle owners in Madison, Alabama now have more choices in filling up with E85, thanks to MAPCO Express and Protec Fuel.
This is the first location for the multi-state MAPCO Express to offer 85 percent ethanol blended fuel. The company partnered with florida-based Protec Fuel to convert the station and equipment and provide the E85 fuel for the company’s new greener-burning fuel option.
“MAPCO has taken a big step in offering E85 to its customers at this Madison location,” said Steve Walk with Protec Fuel. “This launch should lead to more MAPCO biofuel pumps throughout its southeastern U.S. territory.”
According to Mark Bentley, Executive Director of the Alabama Clean Fuels Coalition, there are now 16 E85 pumps in Alabama. “We congratulate and commend MAPCO and the people of Madison for making E85 available to the public,” he said.
Madison, Alabama is north of Birmingham and just east of Decatur and the MAPCO Express E85 pump is located on Highway 72 West.
PEORIA — Peoria may not be an ethanol desert much longer. While E10, the 10 percent blend of ethanol and unleaded gasoline that's sold at most area service stations is freely available, you won't find E85 anywhere in town.
In a listing produced by the American Lung Association of the 142 stations in Illinois that sell E85, none are in Peoria. There are stations that provide E85 in surrounding communities such as Dunlap, Bartonville and Pekin.
Nine E85 stations operate in Springfield.
According to the American Lung Association website, "A typical flexible fuel driver can prevent four tons of lifecycle carbon dioxide and other pollutants from entering our air every year by simply fueling with E85 instead of gasoline. Additionally, using E85 can reduce ozone-forming pollutants by 20 percent and evaporative emissions by 25 percent or more."
The group's literature was handed out at the Bloomington-based Illinois Corn Growers Association booth at last week's Farm Progress Show in Decatur.
"I've noticed that Peoria comes up empty (regarding E85)," said Matt Marcum, an environmental program manager with the American Lung Association, standing by a map of Illinois that identified where E85 could be purchased.
Noting that ethanol plants operated by Aventine and Archer Daniels Midland were located in the Peoria area, Marcum said that "usually in towns where ethanol is produced, there are opportunities to make it available locally."
Dave Loos, technology and business development director for the Illinois Corn Growers, said that change may be coming. "Peoria is one of our key areas (to get E85). We've been talking with Thornton, Road Ranger and Hucks, large independent stations that have an interest in offering E85," he said.
"For ethanol to reach its goals (under federal goals for alternative fuel use), we need to reach higher levels of ethanol use. We need many more blender pumps," said Loos, referring to pumps that allow consumers to set the specific blend of ethanol they want.
Less than a dozen blender pumps are in operation in Illinois at present, he said.
Lincoln, NE-A new E85 pump offering the high-ethanol blend is available in the St. Paul area at Aurora Cooperative, 614 2nd St. The station is celebrating with a special grand opening scheduled for Thursday, September 8 from 11:00 am to 1:00 pm. The station will offer an 85₵ discount on E85 for up to 30 gallons per flex fuel vehicle during the promotion.
The St. Paul E85 pump is the 68th in Nebraska to offer higher ethanol blends. The location will have regular gasoline, E10 unleaded, and E85 available. Find a current list of Nebraska E85 pumps in Nebraska at the Nebraska Ethanol Board website at www.ne-ethanol.org or check the Nebraska Corn Board website at www.nebraskacorn.org.
Over 100,000 Nebraska motorists currently own Flexible Fuel Vehicles, which can run on any blend of ethanol and gasoline, including E85. Drivers can confirm if their car is a FFV by checking their owner’s manual or visiting the Nebraska Ethanol Board website at www.ne-ethanol.org/ffv .
"E85 and other ethanol fuels burn cleaner than gasoline and the ethanol is produced here in Nebraska. As manufacturers produce more Flex Fuel Vehicles each year, there is an opportunity to expand the use of high level ethanol blends,” said Todd Sneller, Nebraska Ethanol Board Administrator. “When FFV drivers fill up on E85 and other ethanol blends, they’re strengthening Nebraska’s economy, making our country more energy independent and going easier on the environment,” Sneller said.
“We are pleased that ethanol, grown and produced right here in Nebraska by our corn farmers, can be offered locally,” said Kim Clark, Ag Program Manager with the Nebraska Corn Board.
Sign up for the Nebraska Ethanol Board’s FFV club for updates of new E85 locations and other announcements. Go to www.ne-ethanol.org/ffv to sign up now.
