News Archive - 02/2010

Growth Energy Adds Six New Plant Members

Source: Growth Energy

WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, today welcomed six new ethanol producers to its growing list of members. Cardinal Ethanol, Carbon Green Bioenergy LLC, Tharaldson, Redfield Energy LLC, Advanced Bio Energy LLC, and Corn Plus will join Growth Energy’s team of 55 Plant Members and 34 Associate Members to help expand the production of domestic ethanol as a means to decrease our dependence on foreign oil and create American jobs at home.

“Since our inception a little more than a year ago, Growth Energy has made great strides on behalf of making America energy independent, cleaning our environment and creating jobs right here in the U.S.,” said CEO of Growth Energy, Tom Buis. “Our representation of the ethanol industry continues to grow, as more and more producers see what we are doing on behalf of renewable, sustainable, domestic ethanol. Adding these six ethanol producers to our growing team will help us achieve our goals as we work to grow America's economy through cleaner, greener energy.”

Cardinal Ethanol is a natural gas fired plant designed to produce 100 million gallons of ethanol each year along with 320,000 tons of dried distillers grains with soluble. The plant is located in Randolph County, Indiana and employs a staff of approximately 48 full-time employees.

Carbon Green BioEnergy, LLC was developed jointly by Carbon Green, LLC and Energetix, LLC. It is a Chicago-based company dedicated to optimizing biofuel production by improving process efficiency and reducing emissions. The plant, located in Lake Odessa, MI, generates 50 million gallons of ethanol a year.

Tharaldson is located in Casselton, N.D. about 30 minutes west of Fargo. As one of the nation's largest ethanol facilities, Tharaldson Ethanol produces 110 million gallons of ethanol and about 350,000 tons of dried distiller's grain each year. Tharaldson’s state of the art facility utilizes the latest, most innovative and energy efficient technology in the marketplace including low natural gas consumption per gallon of ethanol produced and extensive grain storage infrastructure including a grain dryer to accommodate wet corn.

Redfield Energy, LLC is a 50 million gallon per year ethanol production facility located two miles north of Redfield, S.D. The plant produces approximately 160,000 tons of modified wet and dried distillers grain, which is sold to the local and West Coast markets.

Advanced BioEnergy, LLC owns and operates ethanol production facilities in Fairmont, Neb., Huron, S.D. and Aberdeen, S.D. Their combined annual ethanol production capacity is approximately 200 million gallons. The company currently employs 120 full-time employees.

Corn Plus operates a 49 million gallon annual ethanol production facility in Winnebago, Minn. The plant was constructed in 1993 and is locally owned, supported, financed and marketed. Corn Plus's innovation in value-added ethanol production is of national significance; its new fluidized bed is the only one of its kind in the world.

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Protec Fuel Establishes additional E85 Fueling in FL, GA and AL

Source: Protec Fuel Management

Protec Fuel, a Florida-based corporation specializing in turnkey ethanol programs for retailers, fleets and fuel distributors throughout the United States was awarded federal government funds to help install thirty E85 fueling stations. Eighteen of the stations will be located in Florida, ten in Georgia and two in Alabama.

Edwin Flores, President for Urbieta Oil stated that "by expanding to 20 E85 stations in south Florida, Urbieta has made a commitment to our customers. We are empowering them to make a difference for the environment, economy and national security."

Protec Fuel is a fuel management company based in Boca Raton, Florida with its alternative fuel division specializing in turnkey ethanol programs for retailers, fleets and fuel distributors throughout the United States.

For a complete listing of all E85 stations throughout the U.S., click here.

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First Station in NW Alabama Offers E85

The newly reopened Shell Quik Mart on the corner of East Second Street and Woodward Avenue not only looks new, it offers a new alternative for the Shoals-area. For the first time, flexible-fuel vehicle owners and operators looking to refill their tanks in Muscle Shoals will have a choice to refuel with traditional gasoline grades or E85 ethanol, a blend of eighty-five percent ethanol with fifteen percent gasoline.

"We are pleased to be the first and only station, not only in Muscle Shoals, but all of Northwest Alabama, to offer a renewable fuel alternative for conscientious consumers," said Edwards Oil Company's President, Jonathan Edwards. "Our customers who own flexible-fuel vehicles have been asking for it, and now they have a choice to refuel their vehicles with a product that reduces air pollution, lowers our dependence on foreign oil, and helps support American farmers."

Family-owned since its founding in 1945, Edwards Oil Company of Lawrenceburg, Tennessee, has dabbled in renewable fuels since the 1970s. Over the years, the family kept an eye on opportunities to offer their consumers more choices in refueling their vehicles with alternative products that are kinder to the environment and put more dollars back into local economies.

From 2006 through the next few years, oil futures saw one of its most dramatic increases leading to skyrocketing gasoline prices. At the height of the gasoline price-spike, drivers had no choice but to pay as much as $4 per gallon or more. This quickly led to an increase in the number of calls for alternative fuel choices including ethanol and biodiesel.

In 2008, Edwards Oil successfully responded to the challenge by offering E85 ethanol at two stations in Columbia and Lewisburg, Tennessee, while rolling out B20 biodiesel at the Columbia store and a second store located in Shelbyville, Tennessee. That same year, the family underwent the process of converting their entire network of stations to E10, a blend of traditional gasoline that is composed of up to ten percent ethanol. The Shoals Shell Quik Mart is Edwards Oil Company's third station to offer E85 ethanol and their first in Alabama.

"The price of gasoline over the last few years provided the right opportunity for many businesses to look at renewable fuels in order to offer consumers choices," said Mark Bentley, Executive Director of the Alabama Clean Fuels Coalition. "And with ethanol feedstock moving away from corn sources to include other cellulosic materials, businesses getting in early may reap more rewards in the future."

Officials with the Alabama Clean Fuels Coalition, which is the principal coordinating point for alternative fuels in the state, say they have seen a dramatic increase in the development of ethanol infrastructure and use in Alabama.

"In 2006, we had zero stations in Alabama offering E85 ethanol, very few entities that had flex-fuel vehicles, and only a handful of people looking for creative ways to implement ethanol. Today, we have the first station in the Shoals to offer ethanol, our state government and many local communities utilize flex-fuel vehicles, we were part of the nation's first biofuels clean corridor along Interstate 65, and the City of Hoover, Alabama, was the first in the country to turn yard clippings and wood debris into ethanol to fuel their municipal vehicles. What a difference a few years makes!"

Although ethanol and biodiesel have been around for years, these plant-derived fuels have made major quality improvements over the last several decades. While a gallon of E85 ethanol produces less energy measured in BTUs than a gallon of gasoline, benefits of E85 include increased torque and horsepower to go along with reduced ozone forming emissions.

"We and our customers have had good results using the product," Jonathan Edwards said. "We believe that the commitments made by the government and automobile industry will ensure that these products will be around for a long time to come."

Growth Energy provides the most comprehensive and accurate listing of E85 and blender pump locations in the nation. The list of retailers and private access sites is updated DAILY. You may review this site at http://www.e85refueling.com/.

General Motors: We Need More Ethanol Fueling Stations

Source: Growth Energy

Growth Energy welcomed the words of a top General Motors executive who said that the United States must substantially build out the infrastructure to deliver ethanol to consumers. Growth Energy's position is that increasing the number of blender pumps would give drivers a choice of mid- and high-level ethanol blends in more locations across the country.

"What we've heard from General Motors is what we've been saying at Growth Energy since we were created 18 months ago — if we're going to reduce emissions, clean the air, and put Americans to work in green-energy jobs, we need to give American families a choice of low-emission fuel at their filling stations. At Growth Energy, we believe that means more blender pumps," said Tom Buis, CEO of Growth Energy. "Ethanol is a low-carbon fuel that produces 59 percent fewer green house gas emissions than gasoline and it is home-grown. Every blender pump we install at a gas station makes our country more energy independent and gives consumers a choice, all while creating jobs in the U.S. and greening our environment."

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New E85 and Blender Pump Stations

As of this publication, there are 2,101 E85 stations. Below is a listing of those opened since our last publication.

If you know of an E85 station we do not have listed at www.e85refueling.com, please contact us at marketdevelopment@growthenergy.org.

IMPORTANT NOTE: Growth Energy and our partners have established a financial assistance fund that may be accessed by retail sites to assist with offsetting a portion of the cost of installation of new flexible fuel pumps. Rather than just talk about them, we're going to assist with paying for them! Our primary objective is to assist with the installation of systems that will dispense E10, E20, E30 and E85. To discuss the availability of the program and your interest in participation, please contact Phil Lampert at Plampert@growthenergy.org or 573-635-8445 ext. 11.

Member Spotlight: Zarco 66

Scott Zaremba, President and CEO of Zarco 66 Earth Friendly Fuels is an avid supporter and believer in green sustainable energy and a member with Growth Energy Market Development.

Zarco 66 Earth Friendly Fuels is a family owned business, started by Scott's Father in 1968. Started as a tank wagon supplier, hauling fuel to farmers 41 years ago. Many decades have evolved into several retail locations, which were opened in 1988. Currently, there are two blender pump locations in Ottawa and Lawrence Kansas, that offer E20, E30, E50 and E85.

The entire concept of transportation of energy being supplied and a sustainable win in our communities is the entire reason Zarco 66 took the initiative and installed mid level blends at two of the retail locations. According to Zaremba, "By using alternative fuels we are creating more local jobs, supporting our local communities, securing our energy independence and impacting our environment more positively- ethanol is greener, cleaner and burns clearer."

One of the challenges Zarco 66 has faced is dispelling all of the myths regarding mid to high level blends of ethanol. Zaremba mentioned he attempts to personally talk to each customer about the benefits of ethanol. "It starts with us, once you've explained the benefits of ethanol and dispel the myths you have a customer for life."

New and Renewed Growth Energy Market Development Members

We would like to thank these organizations for their continued support of Growth Energy:

Ram Star Energy LLC (Express Fuel Ctr)
C&T Oil Co.

Should you wish to join Growth Energy, contact marketdevelopment@growthenergy.org.

Second Blender Pump Offered in Missouri

Offering drivers in the Kansas City area more choices at the pump, Temp Stop in Lee's Summit is now the second fueling station in Missouri to install ethanol blender pumps. "The new pumps installed last week offer three blends of ethanol as well as two grades of conventional gasoline.

"With the addition of these blender pumps, consumers can seize the opportunity to utilize a homegrown, renewable fuel," said Bradley Schad, Missouri Corn associate director of ethanol blends.""Not only does ethanol burn cleaner than gasoline, it helps reduce our dependence on foreign oil and keeps U.S. dollars here at home. " Located at 100 SE Todd George Road in Lee's Summit, the blender pumps at this Temp Stop location allow drivers to fill up with E20 (20 percent ethanol, 80 percent gasoline), E30 (30 percent ethanol, 70 percent gasoline), E85 (85 percent ethanol, 15 percent gasoline), 87 octane gasoline or 91 octane gasoline.

"We're proud to be part of this movement to promote a cleaner environment," says Terry Green, CEO of Temp Stop in Lee's Summit. "Together with our fuel supplier, Carter Energy, we're making E20, E30 and E85 available to our customers and offering them more choices than ever before when it comes to refueling their vehicles."These blended fuels give them a way to join the 'green' movement, too."

The Temp Stop blender pumps are part of a pilot program with Missouri Corn and the Missouri Department of Agriculture Division of Weights and Measures."Each blender pump pulls from two underground tanks, one with unleaded and one with ethanol."A dispenser then blends the appropriate percentages of the two fuels to create any fuel blend of ethanol from 20 to 85 percent. Although all gas-powered engines can utilize E10 (10 percent ethanol, 90 percent gasoline), ethanol blends higher than 10 percent are currently approved for use in Flex Fuel vehicles only.

"Additional blender pump locations are currently in development," said Schad. "We look forward to offering consumers across the state the same opportunity to choose what they put in their tank."

Loss of stimulus aid hurts ethanol pump plan

Source: San Diego Union-Tribune

A San Diego alternative fuels company is scrambling after ethanol politics sideswiped its efforts at securing millions in stimulus funds.

Pearson Fuels, based in City Heights, was behind an application for $11 million from the federal and state governments to subsidize construction of 55 ethanol pumps across California, including two in San Diego County.

But the regional agency in Los Angeles that would have received the money for the project voted last week to reject it, in part because its members don’t believe that ethanol is a worthy alternative to gasoline.

The rejection by the Southern California Association of Governments has meant big changes at Pearson, said owner Mike Lewis, who started the business when he built an alternative-fuel station in City Heights.

“The administrative assistant I had working here is running the cash register at the gas station today, the people at the gas station got their hours cut back immediately,” he said.

He said Pearson is still planning to expand its network of ethanol pumps in California, but the loss of the stimulus funding is a blow.

Lewis was going to use the money to install pumps for E-85 ethanol at existing gas stations. The fuel, 85 percent ethanol and 15 percent gasoline, can be burned in flex-fuel vehicles, hundreds of thousands of which have been sold in California in recent years.

Proponents of ethanol say it is better than gasoline because it is derived from plants or other renewable sources and pollutes less.

But opponents say it is bad for the environment because production of corn — the primary raw material — uses copious amounts of water and petroleum-based fertilizers and lots of energy is used to cook the corn and then distill the alcohol after fermentation.

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Gen. Clark applies tough tactics for ethanol industry

Source: The Hill's E2 Wire Blog

Retired Gen. Wesley Clark makes no apologies for leading a group that applies bare-knuckled advocacy to advance ethanol production.

Clark, the co-chairman for Growth Energy, spoke candidly with The Hill hours before the Environmental Protection Agency announced new rules favorable to the ethanol industry.

A key part of the ruling was a victory for Growth Energy and Clark, and the aggressive lobbying and public relations they’ve employed over the past year.

“You realize that at a certain scale, you have to deal with new forces that you didn’t see before,” he said in an interview Wednesday.

“The ethanol industry really is sort of stepping up to the bar and saying we are no different than any other industry group,” added Clark, who ran for president in 2004.

“We have got to help people understand what the industry needs because it has to be dealt with in certain ways that are conducive to its growth and development, otherwise it won’t develop. It s no different than the oil industry the aviation industry, every one of these industries is the same,” he said.

EPA’s rule concludes that corn-based ethanol generally meets greenhouse gas standards in a 2007 law, stepping back from a draft last year that found otherwise.

Growth Energy waged an aggressive battle alleging that EPA was giving far too much weight to emissions from land-use changes in other countries linked to expanded U.S. ethanol production.

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Shell and Cosan JV – An Alternative Fuels Major

Source: Seeking Alpha

Shell and Cosan have signed an agreement to form a $12 billion joint venture that could be an alternative fuel major in the future. The joint venture, with assets from both companies, will be focused on the production of ethanol, sugar and power, and the supply, distribution and retail of transportation fuels.

Each company is contributing the following assets:

This JV will be a significant retail fuel marketing player in Brazil with around 4500 fuel retailing outlets. In addition to this, the JV will also be one of the largest alternative fuel producing companies in the region. It remains to be seen if this JV will also operate outside Brazil, although the demand outside the US and Brazil is limited for now.

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Ethanol Poised to Create Jobs in Expanded RFS

Source: Growth Energy

WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, issued the following statement after the U.S. Environmental Protection Agency released its final regulation on an expanded Renewable Fuels Standard:

“Growth Energy commends President Obama for recognizing the value of domestic ethanol both as a low-carbon fuel and as a U.S. jobs creator. The expanded Renewable Fuels Standard released today rightly puts an emphasis on America’s growth energy – ethanol – and that in turn will help our economic recovery, strengthen our national security and clean our skies,” Tom Buis, CEO of Growth Energy, said.

“There are several improvements to the rule from when EPA first proposed the expanded RFS last year. First, we’re pleased to see EPA make positive statements about E15 and mid-level blends of ethanol. If we see EPA approve E15 this year we can create 136,000 permanent jobs in the U.S. Further, the decision to make volume levels retroactive to the first of the year is a significant step toward reducing dependence on foreign oil.

“However, Growth Energy remains opposed to incorporating “indirect land use change” formulas in the rule. Imposing ILUC penalties on domestic ethanol will hamper the nation’s ability to grow its own fuel, and it will certainly cost us American jobs when we should be creating jobs. There is no scientific certainty behind ILUC, and including ILUC in this rule puts the cart before the horse. EPA should postpone incorporating ILUC until the issue has been thoroughly examined in a long-term study by the National Academy of Sciences.

“Further, by using skewed ILUC calculations, the RFS gives Brazilian sugarcane ethanol preferred status as a biofuel over American ethanol. I don’t think that was the intent of Congress when it passed the Energy Independence and Security Act. It won’t make the U.S. any more energy independent by switching our addiction from foreign oil to foreign ethanol. And considering Brazil’s failure to produce enough sugarcane to meet its domestic ethanol needs, I question the wisdom of public policy that goes out of its way to artificially sweeten America’s taste for Brazilian sugarcane ethanol.”

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New E85 and Blender Pump Stations

As of this publication, there are 2,113 E85 stations. Below is a listing of those opened since our last publication.

If you know of an E85 station we do not have listed at www.e85refueling.com, please contact us at marketdevelopment@growthenergy.org.

IMPORTANT NOTE: Growth Energy and our partners have established a financial assistance fund that may be accessed by retail sites to assist with offsetting a portion of the cost of installation of new flexible fuel pumps. Rather than just talk about them, we're going to assist with paying for them! Our primary objective is to assist with the installation of systems that will dispense E10, E20, E30 and E85. To discuss the availability of the program and your interest in participation, please contact Phil Lampert at Plampert@growthenergy.org or 573-635-8445 ext. 11.

Member Spotlight: Shipley Stores

The Shipley Group, located in York, Pennsylvania, was established in 1929 and is a fourth generation family owned company who operates Tom's convenience store chains. Shipley company represents 670 employees and 10 distinct product lines. They also provide Home heating oil (bio-heat), propane, natural gas, electricity and on and off the road motor fuels. The Convenience Stores group has recently renewed its membership with Growth Energy Market Development.

Shipley Group joined Growth Energy Market Development to learn more about the ethanol industry and to stay ahead of changes within the market.

Robert Astor, the Wholesale Fuels Business Manager for Shipley Fuels Marketing, states, "One of the challenges of the industry today is the cost of starting a new facility from ground up - it requires massive infusions of capital. Investors look to profit from these investments sooner rather than later so the "Green" industry struggles to be competitive with the incumbent."

Shipley Stores promotes and believes that "Green" sustainable energy is the future of energy for America. Internet promotion and direct mailing of owners of flexible fuel vehicles is essential in order to improve consumer education about E85.

Currently there are seven locations offering E85 and other blends for Tom's Convenience Stores:

Shipley Stores wants everyone to understand that America's energy independence relies on integrating renewable fuels into the mainstream fuel supply. This will allow us to shift the balance over time and eventually take control and secure our energy future. Something that should be of utmost importance to all of us!

New and Renewed Growth Energy Market Development Members

We would like to thank these organizations for their continued support of Growth Energy:

Reid Petroleum
American Agricultural Assets LLC
Fuel Services Inc
East Gate Express
Arizona Petroleum

Should you wish to join Growth Energy, contact marketdevelopment@growthenergy.org.

New Dispenser From Gilbarco Veeder-Root Provides Maximum Flexibility for Marketers

This coming March, Gilbarco Veeder-Root will unveil a multi-hose dispenser offering four fuel products from the same fueling position: Regular Unleaded, Premium Unleaded, Mid level blend and E85. Each fueling product will have its own separate hose, allowing a maximum flexibility for the consumer or marketer.

"With the proposed federal mandates pushing the ethanol blend wall from E10 to a mid level amount of up to E15, fuel marketers will be faced with a decision," said Chad Johnson, product manager at Gilbarco Veeder-Root. "The EPA's testing has shown vehicles produced prior to 2002 will not be compatible with higher levels of ethanol. Fuel marketers will need to continue to offer E10 and mid-level grades to satisfy both customer demand and regulatory mandates."

Gilbarco offers a wide variety of dispensers with hydraulics up fitted to handle the effects of higher ethanol blends. The company has had a blender dispenser on the market for over 3 years allowing fuel marketers the ability to offer standard fuel and higher ethanol blends from the same dispenser.

Johnson added, "We offer over 40 different models in our Encore S dispenser line and there a number of configuration type to meet customer needs. The EncoreS dispenser allows maximum flexibility for the retailfuel marketer. We also offer a full line of commercial dispensers sold under our Gasboy brand. There are over 50 different models of this dispenser type as well to satisfy the fleet fueling marketplace."

For more information on Gilbarco Veeder-Root, click here.

Missouri Alt Fuel Tax Credit Now Defined

Source: Missouri Corn Growers Association

Missouri’s alternative fuel infrastructure tax credit is now defined easily in a website sponsored by the Department of Natural Resources (DNR). Retailers can take advantage of this credit in the taxable years between Jan. 1, 2009 and Jan. 1, 2012.

The Missouri tax credit is allowable on top of the income tax credit offered by the Federal Government in the amount of 50 percent up to $50,000 of the total cost of the project. Qualifying retailers can receive a state tax credit of 20 percent up to $20,000 of the total cost of the project. According to the website, DNR states that the cumulative amount of tax credits which may be filed for by eligible applicants claiming all credits authorized will not exceed the following amounts:

In taxable year 2009 – $3 million.
In taxable year 2010 – $2 million.
In taxable year 2011 – $1 million.

Desiring applicants must supply an application to MO DNR where they will review and certify eligibility. The application can be found by clicking here. A complete description of the MO alternative fuel tax credit rules can be found by going to: http://dnr.mo.gov/pubs/pub2382.pdf.