Domestic Fuel

As Memorial Day approaches marking the beginning of summer driving season, gas prices have spiked. Last week, gas prices went up .19 cents per gallon in Iowa with ending average prices at $3.70 per gallon. Spikes were even higher in Minnesota/St. Paul with prices averaging $4.21 across the state while the national average is around $3.60 per gallon.

In response Absolute Energy, an ethanol plant located on the Iowa-Minnesota border, is offering Minnesota drivers some relief at the pump in the form of ethanol. Absolute Energy is offering E85, (85 percent ethanol / 15 percent gasoline), in bulk to gas marketers impacted by the recent shut-down of three oil refineries for mostly seasonal reasons. According to E85Prices.com this week, the published average statewide E85 price is averaging $3.08 and has been reported to be as low as $2.39 per gallon in Eagan, Minn.

Rick Schwarck, CEO of Absolute Energy, said, “With gas prices spiking and ethanol plentiful in the Midwest, this will be the summer of the flex-fuel vehicle. Drivers of FFVs should be able to take advantage of serious savings at the pump by using E85. Not only will they be saving money, they will be choosing a fuel alternative that creates jobs and opportunities throughout Minnesota, Iowa and other states. E85 will drive us toward a cleaner, brighter summer sky thanks to lower greenhouse gas emissions while also strengthening our national security and economy.”

A highly respected oil economist believes the solution to the current Renewable Identification Numbers (RINs) price issue is more sales of E85 (85% ethanol).

Economist Phil Verleger has weighed in on the RINS situation in the latest edition of Notes at the Margin, his weekly email report about news impacting the petroleum industry. “The obvious solution to the RIN price problem involves no EPA intervention and no regulatory action,” Verleger wrote. “It simply calls for boosting E85 sales.”

Verleger explains that because refiners will be required by EPA this year to have 9/10s of a RIN for every 10 gallons of gasoline, and each gallon of E85 generates 0.85 RINs, a sale of 10 gallons of E85 produces a surplus of nearly 7.6 RINS which they can sell. “My point is that when the price of RINS gets high enough, that the price of E85 on a per BTU basis will be less than the price of gasoline,” said Verleger in a phone interview with Domestic Fuel. “At some point companies will almost be willing to give away E85 to get the RINS.”

According to Verleger, the RINS issue has been created by the resistance of some refiners to the RFS. “The oil industry doesn’t like to sell less oil,” he said. They want to get the program changed so that “they can sell more gasoline and not have to use as much ethanol.”

Listen to interview with Verleger here: Economist Phil Verleger

The Renewable Fuels Association (RFA) just released “40 Facts About Ethanol,” an animated video review of ethanols past, present and future.

“This video proves once and for all that today’s ethanol is not your father’s ethanol. The ethanol industry has made impressive strides in the last 30 years in production volumes, foreign oil displacement, production efficiencies, co-products, job creation, and cellulose and advanced ethanol market entry. The ethanol industry has a great story to tell and this video helps us tell it with data, color and occasionally humor. Whether you think you know all there is about ethanol or you are new to the topic, this video is a must-see! It is a great primer,” said Bob Dinneen, RFA’s President and CEO.

Check out the video below or visit EthanolRFA.org.

In addition, RFA just released a newly updated mobile E85 locator app. The Flex-Fuel Station Locator application for iPhones, iPads, iPod Touch and all Android devices is free and can be found in the App Store and Android Marketplace. This new version will help users pinpoint any station in the United States offering E85.

“With more than eleven million flex-fuel vehicles in America, we wanted to make it easier, faster, and perhaps more educational and fun for drivers to find E85,” said Robert White, RFA Director of Market Development. “Americans increasingly demand more fuel choice at the pump. They want alternatives to petroleum, especially foreign petroleum. They want fuels which are domestic, renewable, and environment-enhancing. They bought FFVs for a reason and we want to keep fueling the change.”

People are still talking about Chrysler Group’s Super Bowl ad that highlighted the importance of America’s farmers, and today more than 100 Iowans have signed a letter urging Chrysler to recommend the use of E15 in its new vehicles. According to the Iowa Renewable Fuels Association (IRFA), higher blends of ethanol, such as E15, are necessary to maintain the farm prosperity that renewable fuels have created over the last seven years. The signatures were gathered during the 7th Annual Iowa Renewable Fuels Summit.

The letter stated, “E15 is playing an important role in growing the nation’s economy and providing fuel choice for consumers. Ford and General Motors have already approved E15 for their new cars. The undersigned Iowans ask Chrysler to also approve E15 for its new vehicles.”

“We commend Chrysler for its outstanding Super Bowl ad showing support for the American farmer,” Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “Now Chrysler needs to take concrete action and recommend E15 for use in its new vehicles. E15 contains 50 percent more farmer-made ethanol than today’s standard blend. Iowans want to be able to use homegrown fuels like E15 that reduce our dependence on imports and support our farmers.”

The first E85 station has opened in Richmond, Virginia. In addition, MAPCO Express, has “re-branded” their retail stores under the “East Coast” brand and the three new E85 stations, two near Richmond and one near Washington, D.C. will be sold under this brand. Partners in the projects included Maryland Grain Producers Utilization Board, Protec Fuel, MAPCO Express and the Virginia, Maryland and Washington, D.C., Clean Cities Coalitions.

Protec Fuel partnered with MAPCO Express to convert the stations and to provide the E85 fuel for the company at these locations as well as others in the Southeast. MAPCO Express and Protec plan to open two more locations this year as well as offer cellulosic ethanol made from municipal solid waste.

“We are pleased to be able to partner with Protec Fuel to expand the availability of E85,” said Dan Gordon, Vice President of Supply for MAPCO Express, Inc. “This will offer our customers additional choices and expands our network of E85 stations in our chain.”

Steve Walk, executive director of Protec Fuel said, “We are delighted the partner entities are all driven to expand E85 to the East, which is newer to and in need of E85 stations. Not only is it a logical location – near our nation’s capital – to promote U.S.-made fuel, but the corporate partner, MAPCO Express, Inc., has made its environmental mission part of its business model.”

Locations:

• 13200 Kingston Ave, Chester, VA 23836
• 6460 Boydton Plank Rd, Petersburg, VA 23803
• 10007 James Madison Hwy, Warrenton, VA 20187

“Expanded E85 stations in Virginia are a great opportunity for folks to try or switch to this cleaner domestic and renewable fuel” added Alleyn Harned, Executive Director of the Virginia Clean Cities Coalition. “With Protec and MAPCO’s leadership, there are now ten public E85 stations in Virginia, which service the hundreds of thousands of flex-fuel vehicles in the Commonwealth.”

Pearson Fuels (RTC Fuels, LLC) has been awarded $1.35 million for the installation of E85 dispensing equipment at 19 existing fueling stations throughout California. The monies were part of $3.27 million allocated by the California Energy Commission (CEC) for projects that will help the state reduce transportation sector emissions. CEC estimates the E85 fuel market in the state will eventually be the largest in the U.S. with approximately 55,000 new flex-fuel vehicles purchased in the state each year. However, there are relatively few E85 pumps throughout the state so the project includes collecting data on station operations to help provide a demonstration on the feasibility of developing stations to sell E85.

“These awards will increase the availability of alternative and renewable vehicle fuels, and will help to fulfill the Governor’s goal of significantly expanding the market for zero emission vehicles in the state,” said Energy Commission Chair Robert B. Weisenmiller. “Additionally, these investments benefit all Californians by improving air quality, creating jobs and reducing petroleum use.”

The approved awards were made through the CEC’s Alternative and Renewable Fuel and Vehicle Technology Program, created by Assembly Bill 118. The program is slated to invest approximately $90 million during this fiscal year to develop new transportation technologies, as well as alternative and renewable fuels. Additional technologies will be needed to help meet the state’s climate emission reduction goals.

In addition, the awards will help fulfill Gov. Brown’s executive order directing state government to support and facilitate the rapid commercialization of zero-emission vehicles (ZEVs) in California, with a 2025 target of having 1.5 million ZEVs on the state’s roads. They will also aid in the installation of additional infrastructure to support 1 million ZEVs in the state by 2025.

The ECEC also approved four awards totaling $2,550,000 to increase the storage, distribution and dispensing of alternative fuels in the state.

Propel Fuels has closed on the initial phase of its Series D round of funding with $11 million in equity capital from existing investors Nth Power, Craton Equity Partners, and @Ventures as well as a new investor, Gentry Venture Partners. In addition, the company has secured $10 million in debt financing from CapX Partners. With the additional funds, Propels plans to accelerate its build out of its network of alternative energy stations.

Operating on the west coast, Propel has stations that offer E85 and biodiesel blends along with conventional fuels. In addition, the stations help people with other facets of transportation including carbon offsets, tips on improving fuel economy, rideshare opportunities, services for bicyclists, and recycling.

“The continuing support of our existing investors, the new investment from Gentry, and the access to additional debt capital from CapX is a strong endorsement for our vision, our accomplishments, and team,” said Matt Horton, CEO of Propel. “This new funding, combined with grant funding from the State of California, will enable us to accelerate the build out of our alternative fuel stations across state, offering consumers true choice and a better experience at the pump.”

As part of the investment by Gentry, Thomas B. Raterman, a Partner, has joined Propel’s Board of Directors. Raterman has more than 30 years of corporate finance, investment banking, and executive management with rapidly growing entrepreneurial companies.

Raterman added, “We’re witnessing a revolution in transportation, whether it’s innovative new enzymes to create clean fuels, or whole new drivetrains and power systems in the vehicles themselves. Propel is creating a position as a trusted source of the most advanced fuels on the market today – no matter what type of vehicle you drive. We’re excited to help them succeed.”

Holiday travelers in Atlanta might be singing “I’ll Have a GREEN Christmas Without You” to their old petroleum-only based gas pumps this holiday season, as the newest E85 station has opened in the area.

The E-Z Trip Chevron, Indore Oil Company and Protec Fuel joined forces to launch the 14th E85 station early last week in the metro at 3601 Atlanta Road in Smyrna, Ga., just off I-285 at Exit 18:

“E85 is part of the future of fuels,” said Mohammad Hossain, owner of the E-Z Trip Chevron. “Many cars have flex-fuel capability, and many of my customers are environmentally savvy. I’m respecting their wishes and also feel area fleets will use E85.”

“We at Protec are pleased to partner with Mohammad and E-Z Trip to bring E85 fuel to the well-positioned Smyrna area,” said an Executive Director of Protec Fuel, Steve Walk. “He has an understanding of how important the fuel is to help import less foreign oil, and to instead help bolster the local economies that produce ethanol in the States. This also benefits air quality in a sensitive area such as big cities like Atlanta.”

Indore Oil and Protec Fuel have opened numerous E85 stations throughout Atlanta over the past six years. Indore supplies fuel for E-Z Trip.

State corn associations across the country are working to bring more choice for consumers at the pump through the use of higher blends of ethanol, such as E15. Several programs are in place to help retailers install the infrastructure needed for consumers to take advantage of EPA’s decision to allow E15 to be used in vehicles 2001 and newer. In addition, the groups are working to install flex fuel pumps that dispense mid-level blends of ethanol such as E20 and E30 as well as E85, blends that can only be used in flex-fuel vehicles.

Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota all have efforts to increase the use of higher ethanol blends in their respective states by helping fund the installation of the necessary fuel pumps. From programs that completely support the installation of E85 pumps for retailers looking to convert multiple locations to programs that help cover the cost of signage highlighting ethanol options.

Today there are around 162,000 retail stations nationwide; yet, only 3,000 offer E85 and significantly less offer E15. But for most retailers who were early adopters of ethanol blends, they find a financial advantage to selling the higher ethanol blends in increased sales.

In addition to the various state programs, there are also two additional campaigns, the American Ethanol partnership with NASCAR® and the Blend Your Own program, to help increase infrastructure, awareness and adoption of higher ethanol blends. Retailers looking for more information on aid for the installation of infrastructure for higher blends of ethanol, visit the Blend Your Own Ethanol website.

Propel Fuels was recognized as the 8th fastest growing company in Silicon Vally by the Silicon Valley/San Jose Business Journal as part of their Fast Private Awards. The award was based on a three-year growth rate in revenues of more than 400 percent. Today, Propel operates 28 fueling locations throughout California and Washington state with more than 200 locations planned for the next two years.

“With more than 1 million alternative fuel capable vehicles on California’s roads right now, Propel must continue to grow our network of stations to meet the rising demand from consumers who want cleaner mobility options and a better choice at the pump,” said Matt Horton, CEO of Propel. “We thank our growing base of loyal customers for helping us receive this recognition as we improve access to renewable fuels, and make progress on our nation’s clean energy goals.”

Propel is one of the leading retailers who offer renewable fuel blends such as E85 and biodiesel blends as well as conventional gasoline. Yet unlike most retailers, Propel offers services beyond the pump including the ability for drivers to calculate their carbon offset from their fuel purchases, tips on how to improve fuel economy, help consumers find rideshare opportunities and more. In addition, Propel is looking to bring drivers future fuels such as natural gas and electric vehicle charging.

A new blender pump is opening today in Cresco, Iowa. Twenty-nine local investors applied and were approved for a Resource Enhancement and Protection grant (REAP). They group also received Iowa Infrastructure funding to aid with the costs of installation. The FAST STOP flex-fuel station is located at 22268 Highway 9 West, Cresco, Iowa.

During a grand opening event today from 10:00 am to 2:00 pm, the FAST STOP station offered discounts on all ethanol blends, E15, E30 and E85. To my knowledge, this is the first station in Iowa to sell E15 after it became a legal fuel last month.  In addition to ethanol, three blends of biodiesel, B2 and B10 and off road B5 are being sold. The biodiesel is GROWMARK’S Dieselex Gold premium fuel.

Several industry representatives were on hand during the event to help celebrate with FAST STOP. Groups included GROWMARK, AgVantage FS, Iowa Renewable Fuels Association and Iowa Corn Growers Association.

Flex fuel vehicles in Nebraska are on the rise. The state has shown an increase of FFVs by more than 20 percent from last year with greater than 143,000 registered in the state. FFVs can run on ethanol fuel blends up to E85 (85 percent ethanol, 15 percent gasoline). Many drivers are unaware they have an FFV. Most FFVs now have yellow gas caps and/or an FFV logo on the back of the vehicle. Still not sure? Check the U.S. Department of Energy’s website to identify all makes and models of flex fuel vehicles.

There are several benefits for FFV drivers: saving money, reducing greenhouse gas emissions, and supporting Nebraska’s economy. Several Nebraska fuel stations are selling E85 at 68 cents per gallon under regular unleaded prices. But economic studies have found that ethanol lowers gas prices for everyone – even non-FFV drivers – by extending our gas supply.

“FFV drivers have an opportunity to make more fuel choices at the pump,” said Todd Sneller, Nebraska Ethanol Board administrator. “These choices have the additional advantage of lower prices than gasoline. More drivers are realizing the benefits of renewable fuels like ethanol by switching to FFVs.”

Tomorrow, FFV drivers in Nebraska can save even more. Two gas stations in Grand Island are offering discounts on ethanol fuels on September 12 from 11-am to 1 pm. The stations are Pump & Pantry, 1235 Allen Drive, and Aurora Cooperative A-Stop at 4155 E. Hwy 30 in Grand Island.

Drivers of flex fuel vehicles can find details about additional ethanol fuel promotions by checking the Nebraska Ethanol Board web site.

Sacramento, California has a new biofuels station selling both E85 and biodiesel. The station owned by Propel Fuels is co-located at the Mak’s Valero station at 1101 Broadway in downtown. The renewable fuel station is located near I-80, Business Route 80, I-5, Highway 50 and Highway 99. This is the ninth Propel station in the Greater Sacramento area due to consumer and fleet demand.

As part of the opening celebration running September 11-14, Propel will provide Sacramento drivers and fleets with $10 of free E85 Flex Fuel or Biodiesel. The free fuel promotion encourages local drivers to experience the quality and performance of renewable fuels.

“Fleets and families in greater Sacramento have shown us that access to renewable fuels is important to them, so we’re continuing to grow our network of stations here,” said Matt Horton, CEO of Propel. “This is an ideal location, conveniently situated near both the freeway network and downtown, where new fueling stations aren’t common. We’re excited to be partnering with Mak’s to bring increased fuel choices to downtown Sacramento drivers while helping make progress toward our nation’s clean energy goals.”

Today over one million California drivers can use E85 in their flex-fuel vehicles or biodiesel in their diesel vehicles. Sacramento actually has the largest number of renewable fuels stations in any city across the state due to the high number of fleet users and consumer users. These drivers can also track and report CO2 emission reductions as a result of their renewable fuel choice at a Propel pump through the company’s CleanDrive program.

University racing teams participating in the Formula SAE Collegiate design and performance racing series have the opportunity to develop race cars with alternative fuels. The University of Nebraska-Lincoln team has chosen to compete in the 2013 series using E85 racing fuel. Ten of the 81 teams will be competing with E85 racing fuel. The student designed Formula racing type vehicles will compete in a variety of categories including design, performance, acceleration, and endurance.

“After evaluating several fuel options we were confident that E85 would provide the high octane performance necessary to be competitive,” said Jonah Knepper, a member of the University of Nebraska-Lincoln Husker Motorsports team. “We initially calibrated our competition engine on high octane gasoline. When we fine-tuned the calibration with E85 we gained a ten percent increase in power output. With additional design and tuning we think we can get another ten percent power output. That is a huge advantage in racing competition,” said Knepper.

E85 has an octane rating of 100 and as a result, Matthew Kalus, one of the team engineers said when they calibrated the 600 cc engine it increased its power output while at the same time cooling the engine. Brazilian racing teams have been using E85 racing fuel and both IndyCar and NASCAR also compete with ethanol blends.

The 2013 Formula SAE competition will be held in Lincoln next year.  Last year the University of Kansas secured first place in the Overall competition as well as the Endurance competition using E85 racing fuel. In addition, the University of Wisconsin won the top spot in the Fuel Economy category using E85. The UNL team is confident they’ll have a chance at the top spot using E85 racing fuel along with some innovative engineering.

Where else would you find a green Zamboni than in Minnesota? Not even sure what a Zamboni is? It’s the machine used  to resurface ice (think hockey rink). Well these creatures have gone green, and not just the paint color. Brooklyn Park has purchased two electric Zambonies featuring a lead acid battery pack. They, along with other greening efforts of the city, have been featured on MotorWeek’s long running series on PBS.

Other green features of Brooklyn Park? With a grant from the Department of Energy, in partnership with the Twin Cities Clean Cities Coalition, more than 100 police, fire and other various city vehicles are running on E85 and biodiesel.

You can learn more by watching the segment in full.