CHS Energy Remains Bullish on Ethanol
CHS Energy is bullish on ethanol.
That’s according to CHS Energy Director of Sales Mark Fenner, who was giving interviews at the recent National Association of Farm Broadcasting meeting in Kansas City. “We don’t know about the tax incentives, but even without it, I think we’re going to see strong use for ethanol because it is less expensive than traditional gasoline, so when you blend it – whether at E15 or E10 – it does lower the price,” said Fenner.
CHS Energy is part of a national diversified company owned by farmers, ranchers and cooperatives that operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex brand refined fuels, lubricants, propane and renewable energy products. Fenner says the move to a 15 percent ethanol blend for some vehicles is very positive for agriculture, but it does present challenges for retailers. “Our stance was could we look at an E12 where every vehicle could use that and retailers wouldn’t have to split the islands based on newer or older cars,” he said.
CHS also distributes biodiesel and Fenner says that market is less positive for them at the moment. “The flat price of biodiesel compared to traditional diesel has been a big hindrance. We just haven’t seen the demand in that product that we had hoped to see,” he said. “We’re an agricultural-owned company so we wanted to see that product take hold, but it’s just difficult.” He says they still sell a good bit of biodiesel, but it continues to be a struggle.
Listen to a short interview with Mark Fenner here: CHS Interview
4 Comments
Dennis Makarov
I think we’re going to see strong use for ethanol because it is less expensive than traditional gasoline, so when you blend it – whether at E15 or E10 – it does lower the price,” said Fenner.
Mr. Fenner,
Really? Where I live, fuel blended with ethanol to make E10 sells for the same price as fuel at those stations selling E0 with no blended ethanol.
Perhaps it lowers the price for somebody, but apparently not the consumers. If ethanol blends actually lower the price, it would be nice to see that passed on to consumers.
Francis Patrick
Central North Dakota, E-30 40 cents cheaper than E-0.
Jim S
Litchfield, MN…last week E-85 was 80 cents lower than E-0, price at pump was $2.14, as I recall
Dennis Makarov
Francis and Jim,
That may be true of E85 and E0, but from my experience, E10 and E0 are always priced the same, so if ethanol blended as E10 lowers the price as Mr. Fenner says, someone is pocketing the difference and it’s not being passed on to those same consumers whose taxes pay the VEETC.
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