E85 Ethanol is a Popular Fuel in Iowa

Three Brothers Car Repair E85 pumpE85 ethanol is becoming a popular fuel in Iowa. The Iowa Renewable Fuels Association (IRFA) says motorists in the state bought more than 3.3 million gallons of E85 in the third quarter of 2014, the third highest E85 sales in any quarter on record, and a more than 350,000 gallon increase (12 percent) over the second quarter of 2014.

“It’s encouraging to see motorists stepping up to improve air quality in Iowa while taking advantage of attractive E85 prices in the third quarter of 2014,” stated IRFA Executive Director Monte Shaw. “Price is often a motivator for consumers, but there are many reasons to use E85, including the energy security, environmental and local economic development benefits. And, while falling petroleum prices may curtail E85 sales in the fourth quarter, a record setting year for E85 sales in Iowa is still within reach.”

In Iowa, E85 is a fuel blend containing between 70 and 85 percent ethanol. E85 is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV). To determine if your vehicle can use E85, please check your owner’s manual, the vehicle’s fuel cap, or click here for a list of FFVs.

A list of E85 retailers in Iowa is available here.

E15 Debuts in Sunshine State

Some drivers in the Sunshine State will now have access to 15% ethanol fuel (E15), approved by the Environmental Protection Agency (EPA) for use in vehicles 2001 and newer.

protecfuel1In partnership with Protec Fuel, retail stations in Ft. Myers and Sarasota operated by Mid-State Energy are holding kickoff events with substantial discounts on E15 and E85 fuel today to celebrate the new fuel choice for consumers.

Florida-based Protec Fuel helped manage the ethanol blends installation and provide fuel for the locations. “We are proud to help introduce American-made ethanol into the fuel pool through E15 in Florida, especially as it’s a higher performance fuel at 88-octane,” said Protec vice president of business development Steve Walk. “It’s so convenient for drivers to make a difference – you can use E15 interchangeably with gas if you’re driving a 2001 or newer model.”

The Renewable Fuels Association has been working with the Florida Department of Agriculture and Consumer Services for more than two years to overcome regulatory barriers that hindered the sale of E15 in Florida. “It is exciting to see E15 continue its expansion to the East Coast and it is my hope that additional states in the South and East that don’t currently offer E15 will follow Florida’s example and begin offering low-cost E15 to their consumers,” said RFA vice president of industry relations Robert White.

The Tampa Bay Clean Cities Coalition is pleased to see the expansion of bio-based fuels in the region. “These fuels can provide a renewable and cleaner fuel option for us now with virtually no additional investment in vehicle modification or infrastructure,” said coordinator Steven Reich. “I hope that more retailers will take advantage of the availability of these fuels in their product mix.” Clean Cities coalitions throughout the nation are charged with reducing the nation’s petroleum usage by the U.S. DOE.

RFA Pleased with E85 Potential

nafb14-rfa-whiteThe Renewable Fuels Association (RFA) is pleased with a new report that shows the potential for growth in sales of 85% ethanol blends.

“There’s no doubt that E85 sales will double or triple over the next decade, but they also predict that the flex fuel vehicle count will continue to grow,” says RFA vice president for industry relations Robert White. “The flex fuel vehicles on the road today could use all the ethanol we produce if they used E85 more often.”

And that would be possible if there were more places for drivers to buy E85, which would happen if the Renewable Fuel Standard were allowed to work as it was intended. “If given its chance, it will create the market and this report clearly shows that more E85 would be sold,” he said.

At the National Association of Farm Broadcasting convention last week, White also talked about RFA’s “Post Your Price” contest which has been getting lots of entries showing the price of E85 around the country. The contest will award free E85 for a year to a randomly drawn entry, but they are also awarding prizes for the largest and smallest price differentials between E85 and E10. “We’ve already got one sent in that E85 was higher than E10,” White said. The lowest price for E85 so far has been $1.64, compared to $2.84 for regular.

Listen to my interview with Robert at NAFB here: Interview with Robert White, RFA

2014 NAFB Convention Photos

Coverage of the NAFB convention is sponsored by
NAFB Convention is sponsored by FMC

Fuels Institute: Opportunities to Grow E85 Market

E85 price at Kum and Go in Adel Iowa on June 16 2014A group that looks at market issues related to vehicles and fuels says there are opportunities to grow the E85 market — but only if E85 prices remain way below regular grade gasoline prices. This news release from the Fuels Institute says also if automakers continue to produce flex-fuel vehicles at historic rates, E85 sales will, at a minimum, double by 2023 and could even see a 20-fold increase in sales over the same time period.

“This report is essential reading for federal regulators who are considering strategies to meet the goals of the Renewable Fuel Standard and for fuel marketers seeking options to diversify their product offer,” said Fuels Institute Executive Director John Eichberger. “It presents an objective analysis of the overall market for E85, including actual retail sales data, and represents a collective effort to identify opportunities and challenges facing this alternative fuel — without taking a position of advocacy.”

Biofuels have experienced remarkable growth over the past 12 years, from 1.75 billion gallons sold in 2001 to 14.54 billion gallons sold in 2013. The vast majority of this growth is from ethanol, particularly E10 fuel that is ubiquitous in most of the country. However, additional E10 sales are constrained by the size of the gasoline market, which has declined since 2007. Therefore, future biofuels sales growth will be highly dependent upon increasing the sale of higher grades of ethanol like E85, a blend of gasoline with 51 to 83% ethanol.

The report says E85 growth will be dependent on more gas stations offering the higher blend of ethanol and making sure there are plenty of flex-fuel vehicles on the road.

“Increasing the E85 station count would improve the potential for additional E85 sales and introduce additional competition to the market. But several other factors — including the relative price of E85 compared to unleaded gasoline and the number of vehicles on the road that can operate on E85 — must also be evaluated to determine the potential E85 market, especially because flex-fuel vehicles can operate on either E85 or gasoline,” said Eichberger.

Ethanol Report on E85 Study and Contest

ethanol-report-adThe Renewable Fuels Association (RFA) is looking for visual evidence of prices for 85% ethanol (E85) around the country.

“We’re doing an E85 “Post your Price” contest,” says RFA Vice President, Industry Relations, Robert White. “That came about from a study we just concluded in St. Louis this summer.”

That study showed evidence of price gouging for E85, with retail prices were around $1 per gallon higher than was justified by wholesale prices for the locally available ethanol blendstock.

In this edition of the Ethanol Report, White talks about the study and the new contest.

Ethanol Report on E85 study and contest

E85 “Post Your Price” Contest

Fuel prices are on the decline and the Renewable Fuels Association wants to know how low E85 is at your station.

Flex Fuel Pump at Hy-Vee Mills Civic Parkway in Des Moines IA 6-16-14In an effort to promote E85 (85 percent ethanol, 15 percent gasoline) sales and track E85 prices, RFA is offering the opportunity to win FREE E85 for one year with a simple snap of a camera and click of a mouse. All you have to do is submit a photo of an E85 pump to www.chooseethanol.com/PostYourPrice and the winner will be drawn at random. E85 is currently sold at more than 3,440 stations and is approved for use in all flex-fuel vehicles.

“The more information we collect on E85 prices, the more we are able to track and ensure consumers receive a fair price for the high-octane, environmentally-friendly fuel. We hope consumers have fun with this contest, but also understand the cost-saving benefits of higher-level ethanol blends,” stated Bob Dinneen, president and CEO of the RFA.

E85 offers tremendous price savings for consumers, often being sold at $0.75–1.00/gallon less than E10 gasoline. However, RFA recently uncovered signs of price gouging in the St. Louis market during the 2014 summer driving season. It examined retail E85 prices at nine Big Oil-branded stations, finding an average E85 price of $3.48/gallon while the average E10 price stood at $3.45/gallon. The St. Louis retail price for E85 was surprising, given that wholesale E85 prices in St. Louis averaged $2.58/gallon compared to $2.93/gallon for E10. When factoring in RFS RIN prices, locally-available ethanol prices, hydrocarbon blendstock, and a more typical markup, RFA concluded that E85 could have been sold to consumers at retail prices as low as $2.44–2.55/gallon.

In addition to an overall winner, two others will be chosen receive free E85 for a month. This award will be given to the individual who posts a photo of the largest gap between E85 and regular unleaded gasoline and the individual who posts a photo of the smallest gap between E85 and regular unleaded gasoline.

Find out more about the contest here.

Get to Know the Minnesota Bio-Fuels Association

In April 2011 the Minnesota Bio-Fuels Association was founded to represent and promote the renewable fuels industry in Minnesota. According to Tim RudnickiTim Rudnicki Executive Director MN Bio-Fuels Association, executive director, as a state and a union, the country faces many challenges on the energy and environmental front and the Minnesota Bio-Fuels Association is providing solutions to these challenges.

When asked about the Association, Rudnicki explained, “We are a non-profit organization and our members include ethanol producers in Minnesota as well as industry vendors. Our aim is to work with our stakeholders in a collaborative manner to achieve our collective goal of a greener future, a stronger economy in Minnesota, consumer savings at the pump and a more energy independent America.”

The Association has three key areas of focus:

  1. Advocacy: Their active engagement takes place at the state capitol in St Paul with a variety of state agencies and departments as well as through the governor’s office. They work with policymakers and agency officials to give voice to the biofuels industry in matters that impact day-to-day production operations and to further grow the industry.
  2. Fuel Supply Chain Development: They work closely with fuel retailers in the state to increase the availability of fuels such as E15 and E85. They are also able to connect them with wholesale suppliers of E15 and E85 and infrastructure and equipment providers and also educate them on the business case to sell E15 and E85.
  3. Communications: As the representative of the biofuels industry in Minnesota, they organization is constantly communicating and educating consumers on the various benefits of ethanol in transportation fuel as well as changing negative perceptions. Their communication channels include a website with extensive resources on biofuels, social media, advertising and email marketing and they also liaise with the media throughout the state.

One of the founding members of the Minnesota Bio-Fuels Association is Highwater Ethanol, a 59.5 million gallon per year denatured ethanol facility located in Lamberton. They also produce nearly 150,000 tons of dried distillers grains (DDGs) and in April of this year began producing corn oil.

In May of 2006, Brian Kletscher began working with Hightower Ethanol as the president of the Board of Directors and then in November of 2008 was hired as the CEO. He has served as the president of Minnesota Bio-Fuels Association since 2011.

When asked why Highwater Ethanol became involved with the Association, Kletscher noted that being a part of Minnesota biofuel producers, they needed another strong voice to deal directly with potential challenges for the industry and the Association is set up to address many biofuel opportunities. For example, the Association has been participating in bringing additional biofuel usage to Minnesota, by supporting usage of higher blends of ethanol and other biofuels. Continue reading

RFA Case Study: Evidence of E85 Price Gouging?

According to a new case study from the Renewable Fuels Association (RFA), E85 retailers in the St. Louis area may be intentionally price gouging consumers. According to the report, during the 2014 summer driver season, the average E85 price was 12 percent Evidence of Price Gouging RFA Case Studybelow gasoline prices at the wholesale level but one percent higher than gas prices at the retail level. The wholesale-to-retail markup on E85 was nearly twice the markup on gas. In addition, the study concluded that E85 retail prices were around $1 per gallon higher than was justified by wholesale prices for the locally available ethanol blendstock.

The study’s results offer “… clear support for the notion that some gasoline producers/suppliers and their franchised retailers purposely employ E85 pricing strategies meant to discourage E85 consumption and negatively influence consumer perceptions about the fuel.”

Bob Dinneen, president and CEO of the RFA, said of the case study, “It’s fairly obvious that the retailers examined in this study—all of whom are branded by one of the Big Five oil companies—don’t really want to sell E85. In many cases it appears they were pricing E85 above their branded gasoline for the sole purpose of making their gasoline prices look more attractive to the consumer. Sneaky E85 pricing strategies ultimately give oil refiners the opportunity to wrongly claim that consumers are ‘rejecting’ E85; and it gives them an opportunity to claim they can’t comply with Renewable Fuel Standard (RFS) requirements above the so-called ‘blend wall.’ This study exposes the utter hypocrisy of that argument.”

RFA tracked E85 and gasoline (E10) prices at all nine retail stations selling E85 in the St. Louis metro area. All nine stations carry the brand of one of the five largest integrated oil production and refining companies. This makes the St. Louis E85 market highly unusual because nationwide “…retail stations affiliated with a ‘Big Five’ oil company brand are four to six times less likely to offer E85 than independent or unbranded stations.”

Across more than 250 observations during the summer, the average E10 retail price was $3.45 per gallon and the average E85 retail price was $3.476 per gallon. Meanwhile, E85 was available at a local wholesale terminal for an average of $2.58 per gallon, while E10 averaged $2.93 per gallon at the wholesale level. Based on prices for locally available ethanol, hydrocarbon blendstock, RFS RIN (Renewable Identification Number) credits, and a typical markup, E85 could have been offered at retail for $2.44–2.55 per gallon. Continue reading

Ford Hauls Bad Guys Away with Biodiesel and E85

fordptv1Ford is doing its part in helping clean up the streets while also cleaning the environment. The automaker has introduced its new 2015 Ford Transit Prisoner Transport Vehicle, or Transit PTV, capable of hauling up to 12 prisoners at a time and able to run on biodiesel or E85 ethanol.

“Transit PTV is the latest example of Ford’s deep commitment to helping provide law enforcement agencies with capable vehicles,” said Jonathan Honeycutt, Ford police marketing manager. “This concept proves Transit is upfit-ready and designed to Built Ford Tough standards.”

Transit is available in three roof heights, two wheelbases, three lengths and four body styles. It provides a range of powertrain choices with a lineup that includes two gasoline engine options, an E85-capable 3.7-liter V6 and an available 3.5-liter EcoBoost® as well as an available 3.2-liter Power Stroke® diesel [able to run on B20 biodiesel].

Ford is known for its police vehicles, with the Transit PTV joining Ford’s Police Interceptor sedan and utility vehicle, Special Service Police Sedan, F-150 Special Service Vehicle and Expedition Special Service Vehicle in the company’s law enforcement vehicle lineup.

The only people who probably won’t like the Transit PTV would probably be, well, the prisoners it hauls.

Maryland Gets New E85 Station

Three Brothers/A1 Auto Repair and Protec Fuel joined forces to launch a new E85 station in Baltimore, Maryland. The public can now fuel with E85 at 3041 Frederick Avenue thanks to partners Maryland Grain Producers Utilization Board (MGPUB) and the Maryland, Virginia, and Washington, DC, Clean Cities Coalitions.

Three Brothers Car Repair E85 pumpThis is the first E85 station for owner Paul Goeller whose stationhttp://www.a1autothreebroscarrepair.com/ also features an auto repair business: A1 Auto Repair. “I noticed all the flex-fuel vehicles coming through and was surprised there was nowhere to fuel with E85 in Baltimore,” said Goeller. “As a mechanic, I wanted to give a choice that not only is better for the environment and our country, but has certain engine benefits such as higher octane, performance and a cleaner engine.”

Paul Spies, eastern shore farmer and president of MGPUB said of E85, “We invest in projects that support U.S. jobs and protect our environment, and the opening of this E85 station well fits that mission. Ethanol is farm-grown and renewable, and today’s answer for replacing petroleum-based fuels from volatile foreign markets. As our domestic alternative fuel industry grows, we expect to provide even greater benefits for U.S. consumers, the environment, and our farmers.”

E85 is a blend of 85 percent ethanol and 15 percent gasoline that can be used in flex-fuel vehicles (FFVs), as can gasoline. Automobile manufacturers such as Ford, Chrysler, Nissan, Toyota and General Motors all produce FFVs.With more than 16.5 million FFVs on the road, there is strong need for more stations offering higher level blends of ethanol. Visit GoE85.com to check if your vehicle can run on E85 and find more station locations.

“Many cars have flex-fuel capability, whether the drivers know it or not,” added Steve Walk, a VP of Protec Fuel who helped the station add the E18 pump. “Alternative fuels like this, as well as E15 fuel or other ethanol blends, benefit air quality in sensitive areas such as big cities like Baltimore.”

Chevy Offers Van with Biodiesel, E85 Options

chevyvan1Getting close to the end of the year for automakers, which means plenty of them are trying to move what’s left of their 2014 inventory. If you’ve got a big bunch of kids and you’re in the market for some eco-friendly wheels, Chevrolet’s G-Series Express Passenger van might be just the thing to look at right now, with B20 biodiesel-compatible and E85 engine options available.

The powerful Duramax turbo-diesel V-8 is offered in some Express models, delivering best-in-class torque and horsepower. Known by its “LGH” engine code, it is rated at 260 horsepower (194 kW) and 525 lb.-ft. of torque (712 Nm).

Designed to meet more stringent government emissions requirements, the LGH Duramax employs a robust EGR cooling system, along with revised turbocharger tuning that helps enhance EGR performance. It also has a large-capacity selective catalytic reduction system. In fact, the engine features the latest in emission control technology, making it the cleanest Duramax engine ever produced. NOx emissions are controlled via a Selective Catalyst Reduction aftertreatment system that uses urea-based Diesel (Emission) Exhaust Fluid (DEF). The DEF is housed in a 5.83-gallon (20 L) tank and needs to be replenished about every 5,000 miles (8,000 km). Electrically heated lines feed the DEF to the emission system to ensure adequate delivery in cold weather…

A FlexFuel E85 version of the 5.3L V-8 is also available. It delivers the same horsepower and torque as its gasoline counterpart, but runs on E85 ethanol fuel or a mixture of E85 and gasoline. E85 contains 85 percent ethanol, a renewable fuel that is produced domestically.

As I said, this is definitely for a BIG family… or just anyone who needs to haul a bunch of people… as it comes in models able to carry up to 15 people and all their cargo.

Murphy USA Promoting E15, E85 In Iowa

Murphy USA is partnering with Iowa Renewable Fuels Association (IRFA) and the Iowa Corn Growers Association to hold grand openings of E15 and E85 pumps across Iowa. The events will include fuel discounts, door prizes and free food with fuel purchase.

“Iowa motorists will now be able to benefit from increased access to cleaner-burning, lower-cost ethanol blends like registered E15 and E85 at many Murphy USA fueling sites across the state,” said IRFA Managing Director Lucy Norton. “To launch its renewed commitment to homegrown, economical fueling options in Iowa, Murphy USA is also stepping up to offer even greater savings on E15 for 2001 and newer vehicle owners and E85 for flex-fuel vehicle owners during its scheduled grand opening celebrations. Be sure to stop by a Murphy USA location near you to save some of your hard earned money while also improving air quality and supporting Iowa jobs.

During the ethanol fuel events, customers will be able to take advantage of E15 for $2.15 per gallon, E85 for $1.85 per gallon. The Murphy USA locations in Clinton, Davenport, Fort Dodge, Mason City and Sioux City will also offer biodiesel. A list of event dates is below:

Screen Shot 2014-09-15 at 10.56.03 AM

Norton added, “E15 is the lowest priced fuel available for most Iowans, and E85 is the lowest priced fuel for flex-fuel vehicle owners. Now motorists in seven large Iowa cities will have ready access to fuels that not only burn cleaner, but are also the least expensive fuels on the market for the vast majority of drivers.”

Iowa E85 Sales Strong

IowaRFAlogoIowa motorists purchased over 2.9 million gallons of E85 in the second quarter of 2014, the second most sales in any second quarter on record, and a more than 200,000 gallon increase over the first quarter of 2014, according to the Iowa Renewable Fuels Association (IRFA).

“Two strong quarters of E85 sales are now in the books, and Iowa is poised for another big year in E85 sales,” said IRFA Executive Director Monte Shaw. “As White House officials review the final RFS volume levels, they should take note that when given the choice, motorists firmly support lower-cost, higher-level ethanol blends.”

E85, a fuel blend containing between 70 and 85 percent ethanol, is currently sold at more than 200 fueling sites in Iowa, and can be used in all flex-fuel vehicles (FFV).

Protec Fuel Expands E15, E85 in the South

Protect Fuel is working with retailers in the South and Southeast to open 28 E15 and E85 stations. The announcement marks the first phase of an introduction of E15 to cities including Atlanta, Georgia and Houston, San Antonio and Dallas, Texas. Florida and Virginia will also be on the target list.

protecfuel1“Because of the success of our retailers who have offered E85 in the past, our retail customers are asking us for E15,” said Todd Garner, CEO of Protec Fuel. “With our proven expertise in the field, it’s natural for us to help meet the demand of many convenience store retailers – large and small – who want to offer products different than their competitors. Further, this can aid in helping to meet the Renewable Fuel Standard [RFS] blend wall, after market concentration of E10,” Garner said.

E15 can be used in vehicles 2001 or newer while E85 can be used in any flex fuel vehicle. Protec Fuel provides ethanol blends to retailers as well as installs ethanol stations. The company currently supplies, either directly or through distribution partners, more than 200 E85 stations.

In response to the announcement, Tom Buis, Growth Energy CEO said, “Protec has listened to their customers and retailers, and has taken the initiative to offer higher ethanol blends that improve the environment, create jobs at home, and strengthen our energy and national security. Furthermore, Protec knows that by offering a homegrown, less expensive fuel they will continue to build a customer base by providing a choice and savings at the pump.”

“Bottom line – consumer demand for homegrown, high performance, low cost fuels cannot be ignored,” added Buis. “E15 continues to spread across the nation and Protec is a leader in a larger movement that will increase E15’s footprint across our nation, finally ending Big Oil’s stranglehold on the liquid fuels marketplace.”

Minnesota Gov Mark Dayton Kicks Off 27th ACE Conf

Minnesota Gov Mark DaytonThe 27th Annual Ethanol Conference kicked off last night with some brief remarks from Minnesota Governor Mark Dayton. The American Coalition for Ethanol (ACE) annual event, taking place at the Depot Renaissance Hotel, began with hundreds of ethanol advocates who heard from Governor Dayton that he appreciated ethanol producers, “for what you are doing,” to boost the nation’s energy independence, lower gas prices, and clean the environment.

Governor Dayton noted that ethanol enjoys overwhelming bi-partisan support in the Minnesota legislature “because we know it is good for Minnesota and the nation”. He noted that Minnesota is the nation’s fourth largest ethanol producing state and there is support for higher blends of ethanol, such as E15 and E85. He also advocated that every vehicle should be a flexible fuel vehicle (FFV), capable of burning higher blends of ethanol so consumers can have a choice at the pump.

Check out the 27th Annual Ethanol Conference photo album.