Domestic Fuel

Here’s a good story from the Kum & Go pump promotion about their E85 start of summer promotional price. It’s hard to beat $1.85 gas if you’ve got a flex fuel vehicle in Iowa.

If you buy gas at a Kum & Go right now you can take your receipt, go online and enter to win a number of great prizes in their Fuel Good Sweepstakes. There will be monthly prize drawings from June through August.

Since Cindy mentioned that Kum & Go is selling E85 around Iowa for $1.85 today I just happened to be at a pump promotion in West Des Moines in advance of the Iowa Corn Indy 250 where they’re doing just that.

In fact, this is an EPIC sponsored promotion out here today that also involves selling regular gas with a 10% blend of ethanol for $2.18 which happens to be how many miles the drivers will go at the race on Sunday (if they finish!).

I’ve got some interviews and lots of pictures which are being posted into an online photo album as usual. Feel free to visit often.

As summer officially begins, events in Iowa to promote and expand the use of E85 are shifting into high gear.

The American Lung Association of the Upper Midwest reports that Iowa Governor Chet Culver and Lt. Governor Patty Judge will address a workshop at Wallace Auditorium in Des Moines for 100 managers and directors of state-owned vehicle fleets on Thursday, “E85: Kicking the Oil Addiction.” The workshop was developed for the Iowa state agencies by the American Lung Association of the Upper Midwest, on behalf of the National Renewable Energy Laboratory and the U.S. Dept. of Energy’s Energy Policy Act Program.

In addition, E85 stations across the state are offering discounted fuel today in honor of the Iowa Corn Indy 250 in Newton on Sunday, June 24.

Kum and Go is offering E85 at $1.85 per gallon from 9 a.m. to 3 p.m. at stores in Ames, Ankeny, Clear Lake, Coralville, Grinnell, Johnston, Lamoni, and West Des Moines.

An additional group of stations is selling E85 at 85 cents below their posted price from 11 a.m. to 1 p.m. in Council Bluffs, Dubuque, Durant, Estherville, Farnhamville, Fort Dodge, Keota, Mapleton and Roelyn.

Besides E85, which can only be used in flex-fuel vehicles, the Ethanol Promotion and Information Council is sponsoring pump promotions on E10 around the state prior to the race on Sunday. Promotions are being held Thursday in West Des Moines and Grinnell, and Friday in Newton.

The first E85 Escape Hybrids are hitting the streets this week, as Ford Motor Company delivered three of 20 new vehicles Wednesday to the Department of Energy, the Renewable Fuels Association (RFA), and the Governors’ Ethanol Coalition.

RFA president Bob Dinneen was all smiles as he climbed into the driver’s seat of the new vehicle which combines hybrid and flex-fuel vehicle (FFV) technology.

“The combination of hybrid and flex-fuel technology in one vehicle enables increased energy independence and reduced carbon emissions like no automobile before,” said Dinneen. “Ford has introduced a vehicle that runs primarily on ethanol created by our nation’s farmers, and then, with its hybrid power train, travels further on every gallon of that renewable fuel. This is an important achievement in the drive towards sustainable, secure energy.”

The experimental Escape features an electric motor that powers the vehicle at low speeds and a gasoline internal combustion capable of running on fuel blends up to 85 percent ethanol kicks in a higher speeds, according to Sue Cischke, Ford’s senior vice president, Sustainability, Environmental and Safety Engineering.

“Although we currently do not have plans to produce the Escape Hybrid E85, the research from this technology could lead to breakthroughs in even more advanced technologies,” said Cischke.

U.S. Senators Kit Bond (R-MO), Carl Levin (D-MI) and Debbie Stabenow (D-MI) joined Ford for a press conference on Capitol Hill to announce the new hybrid and talk about alternative fuels.

“Every gallon of biofuels grown in the Midwest means a gallon of oil we do not need to import from the dangerous Middle East,” said Bond. “We can and should do more to reduce pollution from vehicles. Ford today is showing its leadership in clean and efficient vehicles with a first-ever hybrid SUV that will also run on biofuels.”

(Read more on the Ford E85 Escape Hybrids from Ford, RFA and Senator Bond’s office. Thanks to Matt Hartwig of RFA for the photos.)

Pilot Corporation has opened the first fuel pump in East Tennessee to sell 85 percent ethanol (E85).

Helping with the grand opening was Alan Jones, manager of Tennessee Department of Transportation’s Environmental Policy Office, who is pictured fueling up a state vehicle with E85 at the Walker Springs Road Pilot location just off of I-40 in Knoxville.

“Pilot is proud to take this first step in bringing E85 fuel to Knoxville and East Tennessee,” said Jimmy Haslam, CEO of Pilot Corporation. “As it is feasible, we will continue to install E85 pumps at other locations in Knoxville and elsewhere. E85 is an important breakthrough alternative fuel source. It’s American made and can help U.S. farmers since ethyl alcohol comes from crops. As production increases, E85 will help ensure that our country has the proper supply of energy in light of continually increasing world-wide demand for gasoline.”

Haslam said that Pilot is grateful to Tenn. Gov. Phil Bredesen and the State of Tennessee for providing funding for alternative fuel resources such as E85. He said that this kind of support will allow fuel distributors like Pilot Corporation to continue to install E85 pumps.

Nearly 50 years in the business of engine performance should be enough experience to earn one the title of “Auto Performance Expert.” Gale Banks with Gale Banks Engineering started his business in 1958. His business, which consists of designing engines for various factories, manufacturing his own line of engines and developing after market performance products, is just a year shy of that half-century milestone; and that experience was expertise enough to earn him a spot on a video segment with Jay Leno. When Chuck dropped by Jay’s garage last month, he spoke with Gale just before the taping about ethanol, the E85 ethanol fuel blend and what the food stock-based fuel means for performance:

jay-leno-garage-banks.mp3 3:36 mp3

VeraSun Energy, one of the country’s largest producers of ethanol, aims to expand its business as consumers become more educated about the fuel. Marketing Director Melissa Ullerich said VeraSun Energy supplies E85 fuel to more than 90 locations. Melissa said with plants in Aurora, SD, Fort Dodge, IA and Charles City, IA the company produces about 340 million gallons of ethanol. She adds that the company has three more plants under development in Welcome, MN, Heartly IA and Reynolds, IN – or, she said, otherwise known as BioTown.

Chuck caught up with Melissa at the 91st Indianapolis 500. She was attending “The Greatest Spectacle in Racing” as a board member of the Ethanol Promotion and Information Council. She tells Chuck why EPIC is important to VeraSun Energy:

indy-07-ullerich.mp3 2:07 mp3

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I received this letter yesterday from a self-proclaimed “ethanol crusader” in Florida. It was pretty long, but here is an edited version with her key points:

Hi Cindy, keep up the good work.

Best Regards,
Lynda Gagnon
Ethanol Crusader

First of all, Lynda – thanks for the grassroots work you are doing to help bring ethanol to the Sunshine State. You are doing more with your campaign than you might believe. If retailers think people will buy a new product, they are more likely to begin offering it.

Secondly, the Ethanol Promotion and Information Council was a major sponsor of the Indy 500, which featured spots that aired multiple times during the race. To view the ethanol spots, go to this page on the EPIC website. The television spots have run during all of the races so far this year, starting with Homestead in Florida.

EPIC also sponsored a major public and media event at the Indy 500 called the Ethanol Summit to educate people about ethanol’s benefits as a performance fuel. They have gotten major publicity from events held earlier this month at the National Press Club and Chicago Board of Trade.

Finally, you make a good point about the need for more information for retailers about incentives to offer ethanol-enhanced fuel and I have passed that along to EPIC. A good place for that information right now is the National Ethanol Vehicle Coalition site, which has a page devoted to retailer information.

Thanks again, Ethanol Crusader. Just curious, do you have some kind of cool super hero costume to wear when you are out crusading??

The man that built The Ethanol Promotion and Information Council from the ground up is Board President Tom Branhan, CEO and general manager of Glacial Lakes Energy. When I caught up with him on the bus, he said the transition to 100 percent ethanol fuel in the Indy Racing League is a major stride for the ethanol industry, and he said there’s certainly more opportunity to keep up that pace. Tom pointed out that every IndyCar runs strictly on Honda motors, but as the ethanol industry expands to other major motor series, that means a larger variety of engines that will be built to run on ethanol.

Tom said this year’s Honda motors built specifically for ethanol fuel are running farther and faster on the same amount of fuel than methanol – the fuel the IRL series used previously. He said ethanol’s performance shows that it can be run in just about any engine if it’s set up for it, getting better mileage and better horsepower. Tom says he’s confident the 91st Indy 500 race will also demonstrate that use of ethanol also amounts to less wear and tear on the IndyCars.

Tom pointed out that as more engines are designed for use of ethanol fuel, EPIC’s role in educating the public will be increasingly vital.

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Amidst the hustle and bustle of race weekend events, I caught up with EPIC board member Don Endres of VeraSun Energy, a producer of fuel grade ethanol. Don said the Indy Racing League’s switch to 100 percent ethanol fuel is history in the making. He said the IRL’s investment in the fuel not only demonstrates to the world that ethanol is a trusted renewable fuel source that promotes a cleaner environment, but that it’s also a high-performance fuel with benefits surpassing those of gasoline.

Don broke down industry projections for the growth of ethanol. He said the fuel currently accounts for just 4 to 5 percent of the fuel stream today. America uses about 142 billions of gasoline annually and that figure is growing by about a percent and a half a year. The Energy Information Administration estimates that by 2050 the demand for gas will reach upwards of 163 billion gallons a year at a 10 percent ethanol blend. That means an annual demand of at least 16.3 billion gallons of ethanol by 2050.

Don said today, the ethanol industry is producing just 6 billion gallons annually and there is another 6 billion gallons of production under construction. He added that car makers are putting a significant number of flex-fuel vehicles into the consumer market, which can burn a higher grade ethanol blend, E85. With an estimated 2 million FFVs added to the market each year on top of the current 6 million already available, Don said the market for ethanol is set to expand well-beyond where it’s at today.

For Don, it’s still rather early in the game. He added that the concentrated push for domestically-produced fuel from America’s politicians not only reaffirm his projections for a vastly growing demand for ethanol, but help drive it.

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Enough with the replicas. This time it was the real deal for EPIC Members. The ethanol team handed out all-access passes for a peek into what makes an IndyCar run at more than 230 miles an hour. Letterman-Rahal Racing’s Steve Shunck led members on a tour through the garages for Rahal-Letterman IndyCar Drivers Jeff Simmons and Scott Sharp. From the shiny brass engine to the $10,000 steering wheel, members got a close-up look at the gears, nuts and bolts of Ethanol’s #17 IndyCar and Petron’s #8 IndyCar. For those of you that missed out on this rare inside look, don’t fret. All of Steve’s nitty gritty information was caught on tape:

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On my first pit stop on the road with Chuck, I caught up with EPIC and IndyCar drivers Jeff Simmons, Scott Sharp, and Sarah Fisher at GasAmerica on LaFayette Road in Indianapolis. EPIC teamed up with GasAmerica and offered E10 fuel, a blend of 10 percent ethanol and 90 percent gasoline to consumers for $2.25 a gallon. They IndyCar drivers manned the pumps alongside EPIC personnel and scribbled autographs for consumers. The special rate was available from 11:30 a.m. to 1:00 p.m, but motorists I talked to said they were lining up around the parking lot as early as 8:00 a.m. David Petros joked that he came out to celebrate his birthday. He said he figured he would save some money and fill up his tank. David added that ethanol is moving the fuel industry in the right direction. Click here to hear more:

When David pulled up to the pump he didn’t have to get out of his car. EPIC personnel were ready to top off his tank. He reminisces about fueling up in the old days:

Another consumer, Kristian Gibson, said she’s counting on ethanol to be more cost-effective and says she’s hoping that motorists will get a fairer price for fuel as the ethanol industry continues to grow. Kristian says her job requires a lot of travel around Marion County. For her, saving money on tank of gas is worth a couple hours for the wait. Hear what else she has to say about ethanol and its impact on the price of fuel:

EPIC officials say E10 fuel is warranted for use in any vehicle built after 1980, but the organization says E85 fuel, a blend of 85 percent ethanol and 15 percent gasoline, requires Flex-Fuel Vehicles (FFV’s). EPIC estimates there are more than 6 million FFV’s on the road today. EPIC sponsored the promotion to highlight the first year that all vehicles participating in the Indy 500 race will use 100 percent fuel-grade ethanol.

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Flex-fuel vehicle drivers in the Empire State now have at least one place to fill up with 85 percent ethanol.

The National Ethanol Vehicle Coalition (NEVC) reports that Campus Mobil, located near the State University of New York Albany campus, held a grand opening for the first public E85 pump this week.

KNC Holdings, the company which operates Campus Mobil, has a second E85 station opening soon in Warrensburg, New York.

KNC president Christian King, who is selling the fuel for $0.54 below the cost of unleaded gasoline, anticipates having an even greater per gallon savings due to constantly rising costs of traditional gasoline. “Today is the first step for New York consumers to do their part in helping to reduce our dependence on foreign oil by purchasing E85,” said King.

According to NEVC, this station development effort, combined with the estimated six new ethanol plants being planned in New York’s upstate region, is moving the Empire State toward the road to true energy independence, improving air quality in the balance.

When the Colorado Governor’s E85 Coalition was formed at the end of 2005 there were only ten E85 fueling stations available in the state.

“We’re at 20 now and by the end of the year we expect to have over 50,” says Gerry Harrow, president of the coalition. “So, we’ve had some great success in a very short time.”

Harrow says with the election of Bill Ritter as governor of the state last year, the coalition’s mission has been expanded beyond E85 and is now known as the Biofuels Coalition.

“He asked us to expand our focus into also putting out biodiesel infrastructure,” said Harrow. “So, we added that just recently, within the last month, to our mission.”

The Biofuels Coalition in Colorado includes representatives from the automobile industry, government, retailers, biofuels producers, petroleum marketers and agriculture. Harrow thinks Colorado’s model can be used in other states.

“Each state has its own unique needs and situation, but some of the things we have done here could help other states,” he said. “One of the things we are doing is working with NREL (the National Renewable Energy Lab) to publish a document that discusses the successes we have had and how we came to those successes and some of the things maybe a coalition would need to do to get started.”

Listen to an interview with Gerry about the coalition and their successes: colorado-e85-harrow.mp3

Photo Credit: Zach Ornitz/Aspen Daily News

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The General Motors Police Package Tahoe was featured and demonstrated to the crowd at the grand opening of a new E85 station in Georgia on May 1. The Fillers/Chevron facility is the seventh E85 site to open in the state, according to the National Ethanol Vehicle Coalition.

Middle Georgia Clean Cities Coalition Executive Director Charise Stephens said, “Our goal is to have General Motors E85 Police Tahoe in each of our counties and the fuel to sustain the program. Currently Middle Georgia has more biofuel stations than any other part of the state and we look forward to having the first E85 Police fleets in the state.”