Domestic Fuel

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.

Just in time for Labor Day travel (I will be one of those millions of travelers but I will be using ethanol) a new E85 station has opened in Planet Ozone at 1601 S.E. Federal Hwy. in Stuart, Florida. The new pump was opened in partnership with Protec Fuel. E85, a blend of 85 percent ethanol and 15 percent gasoline, can only be used in flex-fuel vehicles.

The benefits of E85 are many including the reduction of emissions, lowering dependence on foreign oil, spurring economic growth and is domestically produced.

Planet Ozone’s name implies more than just a greener fuel. The company also built one of the first “green” buildings in the area. The $3 million structure houses a Sunoco, an international grocery store, a Mediterranean and Middle-Eastern food cafe, and juice bar. The building also recycles rainwater and many of the building materials were recycled.

A new E85 station has opened at the Stripes Convenience Store in Corpus Christi, Texas and is now the only E85 station within 100 miles. The pump is located at its location on Weber Road, south of Saratoga Blvd. The company also offers E85 at its station in Lubbock, Texas. Only flexible fuel vehicles can fill up with E85.

“Stripes takes pride in leading the way by bringing a new alternative fuel option like E85 to our customers looking for a cleaner burning gas for their flex fuel vehicles,” said Steve DeSutter, President & CEO of Stripes LLC. “This is something new for us but with the number of flex fuel vehicles growing, and as cities like Corpus Christi push to find ways to improve air quality and make renewable resources a focus, Stripes will offer E85 fuel at more locations if we find that consumers demand that option.”

Stripes says according to E85refueling.com there are around 50 E85 stations in Texas and more than 2,600 across the U.S. They become the first retailer in the area to offer E85 as part of their commitment to supporting environmental initiatives and reducing air pollution in the community.

Several races have been taking place in Bonneville Salt Flats in Utah and last week Hajek Motorsports broke two land-speed records for biodiesel and diesel trucks. The team competed with a Ford F250 Super Duty truck and set the first record on August 16 using biodiesel made from soybeans. The team, owned by Brent Hajek, also broke the diesel speed record and both were achieved using the new 6.7 Power Stroke V8.

Using regular diesel, the team reached the top speed of 171.123 mph and 182 mph on a B20 biodiesel blend. The regular diesel record was achieved on athe first attempt and solidified in the second run. Then the team drained the diesel and switched to biodiesel. The biodiesel land speed record was broken at 130.64 mph.

Hajek is a soybean farmer from Ames, Oklahoma and owns the Hajek Motorsports Museum in Ames where the record-breaking pickup will be on display.

“There are a lot of soybean farmers in this area trying to promote soy products and keep some of the diesel money in Oklahoma, where they are grown,” said Hajek in an interview with Enid News and Eagle.

Hajek is a biofuels enthusiast – two years ago he set a land speed record with Mustang using E85 and reaching 254 mph. His next goal is to reach speeds of more than 200 mph using biodiesel.

A promotion offering 85% ethanol fuel for 85 cents a gallon will celebrate the grand opening of five new E85 pumps in the Little Rock, Arkansas area next week.

Florida-based Protec Fuel supplies the fuel and conducted installation of Coulson Oil‘s E85 pumps which are already open to the public. The big celebration will be held on August 10 at the Shell SuperStop in Little Rock, starting at 10:00 am. The event will feature the $.85 fuel promo for flex-fuel vehicles and speakers will include Lt. Governor Mark A. Darr, Energy Office Director Scott Hamilton, and company representatives.

More information about the event is available on-line from Coulson and Protec Fuel.

There will be a celebration at the Glencoe Coop on August 8th to mark the installation of the community’s first blender pump. The project was supported by a $6,771 grant from the Rural Energy for America Program (REAP) that was created in the 2002 Farm Bill. The program helps with the purchase and installation of renewable energy systems and energy efficiency improvements on farms and rural businesses.  President Obama’s administration has set a goal of installing 10,000 blender pumps across the country withing the next 5 years.

The station, located at Glencoe, Minnesota, will be hosting a ribbon-cutting ceremony on Monday, August 8th beginning at 10:45 am CST. Representatives from the Minnesota Corn Growers Association and the U.S. Department of Agriculture will be on hand along with a number of other special guests. Following a brief presentation, a flexible fuel vehicle (FFV) pump promotion will take place from 11:00 am – 1:00 pm sponsored in part by the American Lung Association of Minnesota. Fuel discounts during the promotion are as follows and mid-level blends of ethanol can only be used in FFV’s but everyone is welcome to come to the event to show their support for fuel choice at the pump.

• · 85 cents off per gallon of E85
• · 50 cents off per gallon of E50
• · 30 cents off per gallon of E30
• · 20 cents off per gallon of E20
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As diesel vehicles become more popular in the U.S., especially in states such as California, Propel Fuels has been offering biodiesel blends to fuel drivers’ commutes. Today, Propel began selling B20 (20 percent biodiesel, 80 percent low-sulfur diesel) at three of its stations located in the Bay Area (San Francisco). The company plans to add B20 blends to several stations in Berkeley and San Jose next.

“As high fuel prices force drivers to think about what they put in their tanks, we are proud to offer a higher blend of biodiesel that provides premium performance and guaranteed quality at no additional cost,” said Matt Horton, CEO of Propel. “We’ve seen an elevated interest in higher-blend biodiesel offerings from Bay Area drivers, in particular. By providing this new choice at the pump, we are enabling these drivers to make even greater progress towards reducing carbon emissions and our nation’s dependence on imported oil.”

Propel sells biodiesel that is sourced from used vegetable oils. Biodiesel has been scientifically proven to improve engine performance and efficiency while at the same time lowering tailpipe emissions. Biodiesel is approved for use in current diesel vehicles and more and more are auto manufacturers are producing vehicles that can run on B20 blends including all 2011 GM and Ford diesel vehicles and Cummins engines.

Propel began selling B20 in Washington State in 2007 and also offers other renewable fuel options as many of its stations including E85.

The American Lung Association in Minnesota is offering a free lecture on alternative fuels and vehicles that are currently available in Minnesota. The event will be held on Wednesday, July 20th from 6:30-8:00 pm CST, at the American Lung Association in Minnesota’s building located at 490 Concordia Avenue, Saint Paul. The lecture is taking place in the Mississippi room. The focal point will be vehicles that can use cleaner fuels such as E85, biodiesel, propane or natural gas. This the the second lecture in the “Clean Air Choices” series focused on air pollution in Minnesota.

“Vehicle emissions are the single largest source of air pollution in the state of Minnesota, but we are also a leader in cleaner alternative fuels and vehicles,” said Robert Moffitt, a spokesperson for the American Lung Association in Minnesota. “Unlike many other parts of the country, Minnesota drivers have choices they can make that can reduce air pollution and the harm it causes to our health. The purpose of this lecture is to explain what these choices are.”

Parking is free, and light refreshments will be served. To reserve a spot, call Courtney at (651) 262-5084 or email Courtney.Blankenheim@lungmn.org.

Magnolia, North Carolina is the newest home of an E85 station, just off of Interstate 40. This marks the state’s 16th E85 station, but the first one funded through the American Recovery and Reinvestment Act via the Carolina Blue Skies and Green Jobs Initiative. The official grand opening took place on June 17 and 90 guests from the local community and throughout the state were on hand for the event. Special guests included Gwendolyn Vann, Mayor of Magnolia; Zettie Williams, Duplin County Commissioner; Steven Burke, CEO and President of the Biofuels Center of N.C.; and Howard Isley, Assistant Commissioner for Agriculture and Consumer Services.

In five years, 16 stations in the state have installed E85 pumps. Isley noted that, “Ethanol is one way to become energy independent. We need new agricultural markets and ethanol is one way to create one here in North Carolina.” He finds the growing number of E85 pumps in the state encouraging and believes that ethanol can help grow North Carolina’s economy.

Lounell Mainor, owner of the Magnolia Marketplace station, said having the dispenser open to the public is a 5-year dream come true. She sees the environmental and air quality benefits of using ethanol a boon for her community.

“There’s a lot of potential (for ethanol). There’s never going to be potential that we’ll produce petroleum in this county but there’s great potential that we’ll be able to grow the crops that make this fuel and that’s what’s exciting,” said Tazewell, with NC Solar Center/ N.C. State University and also the project manager for the Blue Skies and Green Jobs Initiative.

Burke added, “On one end of the gas nozzle for this E85 pump is fuel that is 85% ethanol and 15% gasoline. On the other end of that nozzle is North Carolina’s commitment to gain and grow biofuels. We have a whole new world in agriculture and it’s ‘biofuels’. We can’t continue to depend on oil.”

Cars designed to run on electricity and 85 percent ethanol took top honors in a competition to engineer a more fuel efficient and environmentally-friendly vehicle.

A team from Virginia Tech University designed an extended-range electric vehicle (EREV) using 85 percent ethanol (E85) to win first place in the three-year EcoCAR: The NeXt Challenge competition sponsored by the Department of Energy and General Motors. The competition challenged participating engineering students to re-engineer a GM-donated vehicle to minimize the vehicle’s fuel consumption and emissions, while maintaining its utility, safety and performance. The Virginia Tech team hit incremental goals throughout the challenge that helped the vehicle achieve the equivalent of nearly 82 miles per gallon, a 70 percent improvement in fuel efficiency over the stock vehicle.

Taking second place, also with an E85 EREV, was Ohio State University. The University of Waterloo took third place with a hydrogen fuel cell plug-in hybrid electric vehicle.

“With the experience and skills these innovative students have gained through the EcoCAR competition, they will help reduce our nation’s reliance on oil imports and keep U.S. industries competitive in the global marketplace,” said U.S. Secretary of Energy Steven Chu.

Florida-based Protec Fuel supplied the E85 for several of the teams that made it to the competition finals last week, including the first and second place winners. “We are proud that EcoCAR Challenge winners were running on E85 fuel. This next generation of promising engineers has shown that combining E85 with electric vehicles augments the domestic fuel’s already cleaner burning properties,” said Todd Garner, CEO of Protec Fuel. “This just goes to show E85’s value to development in future – and everyday – vehicle technologies and why E85 deserves to keep tax credits that traditional fuels have enjoyed.”

Earlier today, Sens. John Thune (R-SD) and Amy Klobuchar (D-MN) created waves when they announced their new biofuels bill the Ethanol Reform and Deficit Reduction Act. This act is designed to address federal budget issues while phasing out ethanol tax incentives (VEETC) that are designed to go to the fuel blender of record. While the ethanol industry came out in full support of the bill, expected to be voted on tomorrow, some in the fuel retail industry have quite a different view – in favor they are not.

In an exclusive interview with DomesticFuel, Mike Lewis, Principal of one of the largest renewable fuel retailers in California, Pearson Fuels, said that
while ethanol subsidies have become unpalatable to many legislators, it is important to keep in mind that in the short term there are really only two fuel options for the 200 million plus gasoline and flex fuel vehicles on the the US roads. These two options are 1) gasoline or 2) gasoline and ethanol blends, period.

Lewis continued by saying, “As distributors and proponents of E85, we can tell you with certainty that when the VEETC is reduced or eliminated there will be an immediate decrease in the price advantage E85 has versus gasoline and this will immediately, significantly hurt E85 volumes, gasoline’s only real competitor. It will also put more pressure on the price of gasoline, causing it to increase.”

The Thune/Klobuchar Ethanol Reform and Deficit Reduction Act will incentivize some E85 infrastructure, says Lewis, but this will pale in comparison to the existing benefits of the VEETC enjoyed by E85.

“What we really need is a carve out for E85 from any elimination of the VEETC,” said Lewis. “Gasoline is subsidized in so many direct and indirect ways. For example, why do so many Americans know where the Straight of Hormuz is and how many tax dollars have we spent there? There is no line item for US Military on oil company expense statements, but it is absolutely an expense required to ensure access to their raw materials. The expense to carve out E85 from VEETC elimination is insignificant by comparison.”

Should the Ethanol Reform and Deficit Reduction Act be passed, it would take effect July 1, 2011.

Biodiesel is gaining traction in California. This week Propel Fuels began selling B20 biodiesel at two of its Sacramento area fuel stations. Propel says its B20 is a blend of 20 percent American made biodiesel and 80 percent petro-diesel, and provides motorists increased performance, longer engine life and reduced emissions. Next, Propel added B20 to its Roseville stations as well as its station in Sacramento on Folsom Boulevard in response to customer demand. In addition to biodiesel, Propel also sells E85 and you can find their biodiesel and E85 stations in its biofuel station locator.

“As high fuel prices force drivers to think about what they put in their tanks, we are proud to offer a higher blend of biodiesel that provides premium performance and guaranteed quality at no additional cost,” said Matt Horton, CEO of Propel. “By providing a new choice at the pump, we are enabling Sacramento’s drivers to be part of the solution, making progress towards reducing carbon emissions and our nation’s dependence on imported oil.”

Propel is using biodiesel sourced from recycled vegetable oils. Biodiesel is safe to use in current diesel vehicles and serves to reduce harmful tailpipe emissions while improving performance and efficiency. While not all vehicles are manufactured to use B20 blends, more and more auto companies are producing diesel vehicles designed to operate using B20 including all 2011 GM and Ford diesel vehicles and Cummins engines.

In addition to offering B20 in ares of California, Propel has sold B20 in Washington State since 2007, with a very positive response from consumers. More information on Propel’s B20 can be found here.

Minnesota and Wisconsin are in a battle to claim bragging rights as the best biofuel retailer. Two fuel retailers – one in Minnesota and one across the border in Wisconsin – have renewed a friendly rivalry to determine which station can sell more E85 during a promotion on Thursday, June 2, 2011 from 4-6 pm. This will be the second time the two stations on opposite sides of the St. Croix River battle it out for biofuel bragging rights.

The participating stations include Freedom Valu station at 1535 Beam Avenue in Maplewood, Minn. and the Bob & Steve’s BP station at 101 Aspen Drive in Somerset, Wisc. Both will discount E85 by 85 cents per gallon during the two-hour “E85 Border Battle” promotion. Wisconsin won the first contest by a slim margin last year.

Last year even state mascots were involved with Goldy Gopher cheering on customers in Minnesota and “Alice in Dairyland” promoting E85 in Wisconsin. They are expected to renew the rivalry again this year.

There will be a 30 gallon limit per customer during the E85 Border Battle promotion and customers should know that E85 is only intended for use in flex-fuel vehicles. Not sure if you own an FFV? There will be ethanol enthusiasts on hand to answer this question and any others you may have.

The event is being organized by the American Lung Association chapters in Minnesota and Wisconsin, which recognizes cleaner-burning E85 as a “Clean Air Choice™” fuel. Other supporters include the Wisconsin Corn Growers Association, Minnesota Corn Growers Association, Bob & Steve’s BP Amoco Shops, Erickson Oil and the Minnesota and Wisconsin Clean Air Choice Teams. For more information, see www.CleanAirChoice.org.

Iowa drivers are buying 85 percent ethanol for their flex fuel vehicles.

According to the Iowa Renewable Fuels Association (IRFA), E85 sales in Iowa increased by 27 percent during the first quarter of 2011 compared to the fourth quarter of 2010. The Iowa Department of Revenue reports that sales of E85 by Iowa retailers reached 2,645,038 gallons during the first three months of this year. Compared to the first quarter of 2010, E85 sales were up 64 percent in 2011.

“Consumers have increasingly sought out E85 as an affordable, homegrown alternative with gasoline prices approaching $4 per gallon,” stated IRFA Executive Director Monte Shaw. “It was especially exciting to see E85 sales increase robustly even as the Iowa E85 retailer tax credit was cut by half on the first of January.”

Since January 1, 2006, Iowa retailers have received a tax credit for each gallon of E85 sold. Under the 2006 law, the E85 tax credit was reduced from 20 cents per gallon to 10 cents per gallon on January 1, 2011. Iowa currently has 142 retail outlets offering E85 and is the leading state in renewable fuels production, with 41 ethanol refineries capable of producing nearly 3.7 billion gallons annually and 12 biodiesel facilities with the capacity to produce 315 million gallons annually.

Quantum Fuel System Technologies Worldwide has been awarded a $1.37 million grant by the California Energy Commission (CEC) for launching a new generation of plug-in hybrid electric (PHEV) systems. The goal of the program is to develop technology that will accelerate the adoption of PHEVs by way of improved operational efficiencies and reduced cost. The monies will be used for product validation and to set up a pilot production line to accelerate launching of the new generation of hybrid electric products being developed at Quantum’s Advanced Technology Center located in Lake Forest, California.

“We thank CEC for their continued support of innovation in clean energy technologies that helps to increase America’s competitiveness and create jobs,” said Alan P. Niedzwiecki, the President and CEO of Quantum. “We are excited about the potential of our new generation products that have a chance to change the way we drive.”

Quantum has developed the Q-Drive™ PHEV system that powers the Fisker Karma, a high performance luxury sedan that was developed by Fisker Automotive. Fisker is a partnership between Quantum and Fisker Coachbuild.

In other news, Quantum recently launched a PHEV F150 truck that incorporates its Quantum PHEV drive called F-Drive. Although the company did not release this information about the F150, I have confirmed from a company representative that it is also a flex-fuel vehicle with the ability to use up to E85 (85% ethanol, 15% gas). To my knowledge, this would be the second PHEV – FFV available with the Chevy Volt being the first of its kind to market.