News Archive - 07/2010

Member Spotlight — Gerstner Oil Company

Gerstner Oil Company has recently joined the Growth Energy Market Development team as new members. Family owned and operated by Rudy Gerstner and his wife Kathie, Gerstner Oil was first established in 1976. Gerstner Oil has changed distributors many times since 1979 and today they are branded Valero and Cenex.

Gerstner Oil currently has two convenient stores that it owns and operates, along with a cardtrol and 2 bulk plants. They have a total of 20 employees and 300 customers. Gerstner Oil is a supplier of fuels that has around 22 dealers. They are located at 300 East Highway 50 in Yankton, SD.

According to Rudy Gerstner their primary interest in joining Growth Energy Market Development was because they wanted to be able to take advantage of the technical assistance available, such as the blending economics handouts and other valuable information.

“One of the main reasons we decided to install blender pumps was because we have several dealers that sell E85. We also wanted to take advantage of the South Dakota state incentives for promoting mid level blends, along with selling a local, renewable product that helps support our local farm communities. It felt like now is a good time to take advantage of the opportunity,” noted Gerstner.

Currently Gerstner Oil is in the process of installing a blender pump at a dealer location in Yankton, SD at the Cork and Bottle at 1500 Broadway Street.

According to Gerstner, there are some big obstacles challenging the growth of alternative fuels, E85 and flexible fuel vehicles, “Give consumers what they are looking for, more choices at the pump. It’s important to educate consumers and advertise inventive so that people know about the benefits of alternative fuels.”

New and Renewed Growth Energy Market Development Members

Country Mark
Brabham Oil
Appel Oil
Midway Services, Inc.
Drum Oil & Propane
Skyline Petroleum  

New E85 and Blender Pump Stations

There are currently a total of 2,164 E85 stations and 162 blender pump stations.

Below are the new E85 and blender pumps as of the last newsletter. 

Growth Energy Partners to Open First Blender Pump With Mid and High Level Ethanol West of the Rockie

Source: Growth Energy

Jefferson City, MO — Growth Energy has joined forces with Get Green LLC, Lucky Stop to offer the first blender pump offering mid and high levels of ethanol in the Southwest. Located at 8816 S Eastern in Las Vegas, NV, the site offers ethanol blends of E30 and E85.

Tom Buis, CEO of Growth Energy noted that the recent certification of Dresser Wayne and Gilbarco blender pumps by Underwriters Laboratory will help promote the installation of blender pumps across the country to help decrease our dependence on oil.

“We are pleased to assist Lucky Stop with the opening of the first blender pump west of the Rockies,” said Buis. “Every blender pump we install will help make our country more energy independent and more secure, all while giving consumers a choice at the pump that includes domestic, renewable ethanol. Growth Energy is pleased to have been able to assist in Lucky Stop’s efforts and we remain committed to assist with additional blender pumps across the nation.”

Mike Maalouf, owner of the Lucky Stop station said, “Everyone is struggling with the way the economy is right now. By installing E30 and E85 this creates more choices for the consumer, but also assists with lessening our dependency on foreign oil. Ethanol is greener, cleaner and better for the environment.”

The new blender pump opened for business on Monday, July 12 and has increased sales by 30 percent since they started offering the blended fuels.

Growth Energy provided Lucky’s a grant through their 2010 E85 and Blender Pump Program. Along with the funding to offset the cost of infrastructure, Growth Energy has supplied retailer assistance with the technical aspects of installation and marketing of both mid and high level blends of ethanol. A complete list of all sites offering both mid and high level blends of ethanol may be found at http://www.e85refueling.com/

For more information on the 2010 Growth Energy E85 and Blender Pump Grant Program, contact the Growth Energy Market Development office at 1-877-485-8595 or at scourter@growthenergy.org.

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About Growth Energy
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach. Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. More information can be found at GrowthEnergy.org.

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Minnesota Uses More E85 In State-Owned Vehicles

Source: American Lung Association

Saint Paul, Minn. — Minnesota’s state agencies continue to make steady progress in their effort to reduce the amount of petroleum consumed by publically-owned vehicles. During the first two quarters of the year, state agencies used 437,063 gallons of E85, a cleaner burning fuel consisting of up to 85 percent ethanol and 15 percent gasoline. That represents a nearly 25 percent increase over the amount used during the same period in 2009, according to Tim Morse, chair of the SmartFleet Committee, a group tasked with helping agencies comply with Executive Order 04-10, issued by Gov. Tim Pawlenty.

The Faribault Academies, a campus of educational facilities serving deaf and blind Minnesotans, topped all others in the SmartFleet quarterly report, using E85 75 percent of the time they bought fuel. Another standout was the Minnesota Office of Higher Education, which reported 73 percent E85 use during the first half of the calendar year. In terms of sheer volume of E85 used, the state Department of Transportation used 170,617 gallons of cleaner-burning E85 in six months, compared to 376,312 gallons of gasoline and 690,798 gallons of B5 biodiesel blend fuel.

“This continued progress shows that the State of Minnesota is serious about its stated goal to reduce its petroleum consumption,” said Kelly Marczak, director for the American Lung Association in Minnesota’s clean fuel and vehicle technologies program and a member of the SmartFleet Committee. “In just six months, the state’s use of E85 in 2010 prevented more than 1,745 tons of lifecycle carbon dioxide emissions and harmful pollutants from entering our air.” In addition, the 5% biodiesel blend prevented 290 lbs of particulate matter, 400 lbs of hydrocarbons, 3,000 lbs of carbon monoxide and 700,000 lbs of carbon dioxide emissions.

The American Lung Association in Minnesota supports the use of E85 and biodiesel fuels in both public and private vehicles, as part of an overall strategy to reduce and prevent air pollution. For a complete listing of all 355 E85 stations in Minnesota, as well as a list of all flex fuel vehicles that can use the ethanol-based fuel, see www.CleanAirChoice.org

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Growth Energy: Dresser Wayne Blender Pumps Receive Final Safety Certification

WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, along with Dresser Wayne today announced that Underwriters Laboratory (UL) has issued certification to the dual hose ethanol blender available in Dresser Wayne Ovation eco fuel dispensers. This certification will help fuel retailers meet increasing demand for renewable fuel by dispensing mid to high ethanol blends along with conventional gasoline.

Growth Energy CEO Tom Buis noted that the final certification for this fuel dispensing equipment is an important step toward providing higher level blends of ethanol directly to consumers to help decrease our dependence on oil.

“Achieving this UL certification for the Dresser Wayne flexible fuel dispensers is another step forward as we work to create a new energy future in this country,” said Buis. “Every blender pump we install will help make our country more energy independent and more secure, all while giving consumers a choice at the pump that includes domestic, renewable ethanol.”

The Dresser Wayne dual hose ethanol blender blends gasoline and ethanol in both dispenser hoses enabling it to offer low blends on one hose for conventional vehicles and mid- to high-level blends on the other hose for flexible fuel vehicles.

“We want to simplify alternative fuel adoption so retailers can feel more confident about embracing this developing energy segment,” said Scott Negley, Dresser Wayne director of Alternative Energy Products. “With this approval, our entire eco fuel product portfolio is now UL certified. This helps our customers achieve and maintain regulatory compliance as they add eco fuels to their product offerings.”

UL has also extended certification to include Gilbarco Encore blenders with the flexible fuel option.

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About Growth Energy
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach. Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. More information can be found at GrowthEnergy.org.

Growth Energy Partners with Retailer in Las Vegas to Offer Higher Ethanol Blends

Jefferson City, MO -- Growth Energy has joined forces with CJW Petroleum to offer E85 at 3870 Craig Road in North Las Vegas, NV. The station is located in close proximity to Nellis Air Force Base where numerous flexible fuel vehicles are stationed.

“There are tens of thousands of federal flex fuel vehicles that have never run on anything but conventional gasoline because they don’t have access to mid and high level blends of ethanol,” said Phil Lampert, V.P. of Market Development for Growth Energy. “We are working with partners across the nation to build out the infrastructure so flex fuel vehicle owners have a choice at the pump.”

The new E85 pump was open for business on Tuesday, July 13 and sold over 1,400 gallons of the alternative fuel in a short time.

Phillipe Savigard, owner of the Nevada station said, “The reason I offered the fuel was I feel it is the right time. We need to make consumers more aware of the product and educate them so there is less confusion in the marketplace.”

CJW Petroleum has become part of Growth Energy’s 2010 E85 and Blender Pump Program, offering funds to retailers for the alternative fuel infrastructure. Growth Energy is also assisting retailers with the technical aspects of installation and marketing of both mid and high level blends of ethanol. A complete list of all sites offering both mid and high level blends of ethanol may be found at http://www.e85refueling.com/.

For more information on the 2010 Growth Energy E85 and Blender Pump Grant Program, contact the Growth Energy Market Development office at 1-877-485-8595 or at scourter@growthenergy.org.

Dresser Wayne Reliance E-Series Dispensers Receive UL Certification for E85 Fuel

Source: DresserWayne

Dresser Wayne, a global innovator of fuel dispensers and technologies, announced today that its Reliance® E-Series fuel dispensers for retail and fleet applications received Underwriters Laboratories (UL) certification for dispensing ethanol up to E85. The Reliance E-Series dispenser's UL certification follows the recent UL certification of the Dresser Wayne Ovation® Eco Fuel retail dispenser, and expands Dresser Wayne's portfolio of compliant alternative-fuel offerings for both retail and fleet customers.

Underwriters Laboratories sets safety standards and conducts compliance-testing on a wide range of products. Complete ethanol-dispenser systems must meet strict requirements for materials compatibility and safety. In order to dispense ethanol up to and including E85, the equipment must be designed to address ethanol's corrosive properties. The UL certification for the Reliance E-Series dispenser offers customers an effective, compliant solution for the delivery of alternative fuels.

"There are a large number of flex-fuel vehicles in government fleets with renewable fuel requirements, but they often lack the supporting local infrastructure for E85 fueling," says Scott Negley, director of Alternative Energy Products for Dresser Wayne. "UL certification of our E85 Reliance E-Series dispensers can make it easier for government and business fleet customers to gain approval from local authorities for the installation of E85 fleet-fueling facilities."

Reliance E-Series fuel dispensers are available in several configurations for application versatility. The Reliance E/G6200 dispenser series includes heavy-duty features for general private-fleet fueling, while the rugged Reliance E/G5200 dispenser series has a mechanical volume- and price-register for economical retail fueling. The Reliance S1 E/G6101 shelf-mounted dispenser is specially designed for fleet-fueling from above-ground storage tanks.

UL's certification of the Reliance E-Series dispenser for E85 expands upon its interim approval of the dispenser for E25 ethanol blends earlier this year.

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Ethanol Frequent Fuel Card Available

This week, with support of the American Lung Association and other sponsors, three fueling facilities in the state of Minnesota are offering a Frequent Fuel Card in exchange for ethanol fuel discounts. These retail sites include those in Truman, Lyle and Austin, Minnesota.

The NuMart C-Store at 302 North 5th Street in Truman began giving away the fuel cards today. The first 50 flexible fuel vehicles (FFVs) to fill up at the site received the card where after 4 E85 purchases, they will receive a $10 discount off their next purchase of E85.

Freeborn County Coops are also offering the frequent fuel cards to the first 100 FFV owners to fuel up at their facilities at 301 1st St. in Lyle on July 22 and at Hwys 56 and 90 in Austin, MN. A $10 discount will be given on E85, E20, E30 or E40 after a customer’s fourth fuel up.

Also, the participants at each location will be entered into a drawing for a $50 fuel card.

For more information on these events, go to www.CleanAirChoice.org.

US Automakers on Track for More Ethanol Vehicles

Source: CNBC

DETROIT - U.S. automakers say they're on track to increase the number of vehicles that can run on fuel-saving ethanol, even as the ethanol industry falters and other technologies like electric vehicles capture the public's attention.

Most gasoline in the U.S. contains a low percentage of ethanol, which is a kind of alcohol made from corn, sugar and other substances. But only some vehicles can run on either gasoline or E85, a blend of 85 percent ethanol and 15 percent fuel. There are around 8 million flex-fuel vehicles on the road right now. Regular gasoline vehicles can't run on E85.

Although not as efficient as gasoline, E85 reduces dependence on oil because of the low percentage of gas it contains. It's typically cheaper than gas because of federal subsidies of around $6 billion per year.

Automakers benefit, too, because they get federal fuel economy credits for making flex-fuel vehicles.

General Motors Co., Ford Motor Co. and Chrysler Group LLC say they expect to meet a 2006 pledge to double their production of flex-fuel vehicles by the end of this year. In 2006, they produced 700,000 vehicles, so that means making more than 1.4 million flex-fuel vehicles by the end of this year.

U.S. automakers also expect to meet a goal of making half their vehicle production flex-fuel by 2012, up from around 30 percent now. But they warn that they could pull back if there aren't enough gas stations with ethanol pumps.

Availability of ethanol varies widely. There are more than 2,000 U.S. gas stations with E85 pumps or blender pumps that allow drivers to specify the percentage of ethanol they want in their fuel. But that's less than one in five gas stations in the country, and the vast majority are in the Midwest.

"We haven't changed the commitment because we really do believe that biofuels need to be a piece of it," Ford spokeswoman Jennifer Moore says. "But it may turn out to be a more regional solution."

Ethanol lobbying group Growth Energy says the number of stations with ethanol pumps grew 11 percent last year, but that was far slower than the triple-digit growth they saw earlier in the decade. Sales slumped last year in Minnesota, which has the most ethanol-equipped gas stations in the country, as low gas prices narrowed the cost advantage enjoyed by E85.

When prices are low, buyers are more likely to choose regular gasoline because it's more efficient. GM spokesman Alan Adler says E85 needs to be 20 to 25 percent cheaper than gasoline to make up for the fact that you have to fill up more often.

E85 is now around 20 percent cheaper nationwide, at $2.17 per gallon versus $2.72 per gallon for gasoline, according to E85prices.com. But in some states, the difference is as little as 16 percent.

The ethanol industry also has been hurt by high corn prices, low wholesale ethanol prices and the overall economy. Several major producers have gone bankrupt, and the industry is uncertain as it waits for the federal government to decide whether to renew its incentives at the end of this year.

Last week, Growth Energy called for a gradual end to the government payments that oil producers get for blending ethanol. The group wants the money used to install blender pumps at gas stations. It also wants the auto industry to make all its vehicles flex-fuel capable, although it didn't give a timeline.

"It doesn't matter how quickly automakers move if there are no blender pumps," says Growth Energy spokeswoman Stephanie Dreyer.

A rival ethanol group, the Renewable Fuels Association, doesn't support that plan and wants to keep the incentives in place.

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Kansas City Clean Cities Holds Ethanol Workshop

The Kansas City Regional Clean Cites held a workshop on July 9 in which Growth Energy participated, geared toward ethanol fuel. The speakers focused on where ethanol fits in the world today, fleet and retail success stories, and funding available for retail facilities.

“There are 4,560 flexible fuel vehicles in region 6 of GSA. . . We purchased 3.2 million gallons of gasoline in fiscal year 2009 and we’re on our way on purchasing more in fiscal year 2010,” said U.S. General Services Administration’s (GSA) Region VI Represenative Don Gard. “As a success, we’ve worked with the Army installing the E85 tank in Ft. Leonard Wood, MO. But we are still having the challenges of driver’s reluctance to use E85, educating consumers and there is a lack of E85 stations.”

“Three years ago, I began putting together green gas stations. . . We were the first in Kansas to put in a blender dispenser,” noted Zarco 66, Inc. owner (shown right). “Being able to get out and explain what I do is the key to moving this forward.”

Market Development Manager Michelle Kautz advised the group on Growth Energy’s commitment of promoting mid and high level blends of ethanol and the direct grants the group is offering to offset the price of infrastructure.

Growth Energy Proposes Fundamental Shift in America’s National Fuel Policy

Fueling Freedom Plan Will Redirect Government Support to Create Open Fuels Market

WASHINGTON, DC – Growth Energy, a coalition of U.S. ethanol supporters, today called for the redirection and eventual phasing out of government support for ethanol in return for a level playing field – infrastructure investments that will create competition in the fuels market and give consumers true freedom to choose their fuel.

"We are confident that in a fair and open market, ethanol can and will compete successfully against oil,” said Tom Buis, CEO of Growth Energy. “Creating that competitive market will save money for both taxpayers and motorists, since it takes the control out of the hands of Big Oil and puts it into the hands of the consumer.”

The “Fueling Freedom” plan calls for the phasing out of current ethanol supports over time, by redirecting a portion of those funds to build out the infrastructure for the distribution and use of ethanol, and shifting the remaining portion away from the oil companies to opening the market. The primary elements of the plan include:

• Funds currently going to the oil industry as an incentive for blending ethanol into gasoline (the VEETC) would be redirected to provide backing for the build out of distribution infrastructure for ethanol – such as tax credits for retailers to install 200,000 blender pumps and federal backing of ethanol pipelines. This will provide Americans the access to choose ethanol in an open and free market, and would allow for the elimination of the tax supports over time in exchange for that level playing field.
• Requiring that all automobiles sold in the U.S. be flex-fuel vehicles – as many as 120 million. This requires no additional cost to taxpayers and a minimal cost (about $120 per vehicle) to vehicle manufacturers.

Growth Energy’s Fueling Freedom plan, once implemented, would build out the infrastructure in the United States to create a path that leads to a genuinely free market – an open market that is free of government supports. Redirecting monies currently paid to oil companies to blend ethanol into gasoline toward infrastructure improvements would enable consumers to choose between gasoline and renewable, homegrown ethanol.

“Fifty five years ago, President Eisenhower, himself a former general, proposed an Interstate Highway System to give Americans the freedom to travel our country,” said Growth Energy Co-Chair Gen. Wesley K. Clark (Ret.). “Today, Growth Energy is proposing to give Americans the freedom to choose an American fuel to travel those highways. By creating an open fuel market, we can break OPEC’s monopoly, improve our national security and create jobs here at home.”

Federal Fleet Conference 2010

Growth Energy participated in the 2010 Federal Fleet Conference in Phoenix, Arizona July 12 - 15. The group sponsored a booth where both a Gilbarco Veeder Root and Dresser Wayne blender pump were displayed.  President of Clean Fuels Consulting and Growth Energy Market Advisory Committee member, Rhea Courtney Bozic stopped by to visit the booth.

Along with over 180 additional booth vendors, several automobile manufacturers spotlighted many of their FFV fleet vehicles available in 2010 and 2011.

Clean Cities Coordinator for Clean Communities of Central NY Barry Carr attended the conference noted, “It is exciting that the Federal Government seems to be making an effort to integrate alternative fuels and alternative fueled vehicles into Federal fleets. This is exactly the leadership that the government should practice consistently, because government funded by the people should be doing things in the best interest economically and environmentally. Anytime the Federal government promotes the use of alternative fuels we lessen our dependence on petroleum products. It is exciting to see the products produced in the United States, it is important because its creating jobs and its reducing greenhouse emissions in the United States.

Along with the conference, there were many educational workshops and sessions. A short discussion, “Meet the E85 Experts” included CEO of DMC Green, Inc. Dianna Morgan . Morgan discussed the strategies and goals of DMC Green and the infrastructure that is available. “The Federal Government has a $50,000 tax credit available to install infrastructure and through our grant provided by the Department of Energy, DMC Green also has a $50,000 cash incentive available to install infrastructure.” DMC Green assists with building infrastructure in solar, hydrogen, ethanol, biodiesel and electric.

Throughout the convention there were breakout sessions, educational sessions, fleet management classes, aviation workshops and automotive procurement classes. Other sessions included “Meet the Propane Experts, Meet the Clean Cities Experts and Meet the Biodiesel experts.” The conference also included U.S. General Services Administration (GSA) vendor presentations.

Member Spotlight – Bridgehampton Service Station, LLC

Bridgehampton Service Station, LLC has recently joined the Growth Energy Market Development team as new members. Established in 1928, by William McCoy. the company was then passed down to Albert McCoy Sr and then to the current owner, Albert McCoy Jr. The owner of the property is Bridgehampton Service Station, LLC in which Albert McCoy Jr is the sole owner. McCoy Petroleum has a total staff of approximately 20 employees.

According to Albert McCoy Jr., President of McCoy Petroleum, their primary interest in joining Growth Energy Market Development was because they wanted to be immersed within the ethanol industry and to receive informational updates regarding biofuels.

In 2004, McCoy purchased the location of Bridgehampton Service station. At the time the station was purchased it was very old, McCoy Petroleum knocked down the station and began construction on it. In February 2010, they started construction on the new site and as of June 2010 the construction was complete. Initially McCoy decided to install E85 because of marketing opportunities, but also because there were many state and federal incentives to take advantage of.

“One of the main reasons we decided to install E85 was because we have hundreds of FFV’s in our surrounding cities that can fuel up, We built the station with E-85 because we recognized the local demand to do things "green,”noted McCoy.

McCoy Petroleum currently has one fueling location that offers E85: Bridgehampton Service Station, LLC, is located at 2148 Montauk HWY inBridgehampton, NY. They currently have two other fueling sites that offer only E10 and super unleaded that are located in Amagansett, NY and Southampton Village, NY

According to McCoy, the biggest obstacle challenging the growth of alternative fuels and FFV’s from an operator’s stand point is that it is a challenge to retrofit and costly to install piping. Another challenge from a customer’s perspective is loss of mileage per gallon.

“It’s important to educate consumers on the importance of alternative fuels today” noted McCoy.

New and Renewed Growth Energy Market Development Members

New E85 and Blender Pump Stations

There are currently a total of 2,165 E85 stations and 161 blender pump stations.

Below are the new E85 and blender pumps as of the last newsletter. 

** indicates blender pump available

2011 Chevrolet Caprice Police Package to Be E85 Compatible

Chevrolet has released the technical manual for the Holden-based 2011 Chevrolet Caprice PPV (Police Patrol Vehicle) and it includes an E85 compatible platform.

The new 2011 Caprice will be powered by a 265kW/521Nm 6.0-litre V8 and include Active Fuel Management. General Motors (GM) says its 0-100km/h time of less than 6.0 seconds will make it the police service’s fastest-accelerating and highest-top speed vehicle. This FFV will be included in GM’s extensive line of E85 compatible vehicles available in 2012, but this vehicle will not be offered at the retail level.

In 2010, GM offers as flexible fuel:
Buick Lucerne
Buick Terraza
Cadillac Escalade
Chevrolet Avalanche
Chevrolet Express
Chevrolet HHR
Chevrolet Impala
Chevrolet Malibu
Chevrolet Silverado
Chevrolet Tahoe
GMC Savana
GMC Sierra Pickup
GMC Sierra Denali

Recently, the 2011 Buick Regal was announced to be flexible fuel.

For a complete listing of flexible fuel vehicles, go to http://www.ethanolretailer.com/flexible-fuel-vehicles/. 

Growth Energy: Bill Will Help Our Nation Achieve Energy Security

Source: Growth Energy

WASHINGTON, DC – A new bill introduced by Sens. Amy Klobuchar (D-MN) and Tim Johnson (D-SD) today includes provisions that will help our nation wean itself off of oil and secure our energy independence, according to Growth Energy, the coalition of U.S. ethanol supporters.

The Securing America’s Future with Energy and Sustainable Technologies Act (SAFEST) includes provisions to promote the production and use of renewable fuels like ethanol through an investment in ethanol infrastructure –blender pumps and pipelines—and Flex Fuel Vehicles, which are capable of operating on any combination of conventional and renewable fuels.

“In these tough economic times, we need a national energy policy that creates jobs in the United States, improves our environment and strengthens our national security by reducing our reliance on foreign oil,” said CEO Tom Buis. “Legislation that requires automakers to produce flex fuel vehicles and retailers to install blender pumps would provide more drivers with a choice of mid- and high-level ethanol blends and create thousands of good-paying green collar jobs that can’t be outsourced.”

The legislation also addresses the controversial concept of Indirect Land Use Change and provides equity by allowing all feedstocks that meet the 50 percent Green House Gas reduction requirements to qualify as an advanced biofuel. Buis noted that grain ethanol is 59 percent cleaner than gasoline refined from oil and can play a significant role in cleaning our air.

“We commend Sens. Klobuchar and Johnson for their efforts to ensure a cleaner, more secure energy future for America.”

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Ethanol Producers Want To Expand Market

Source: Channel 3000

MONROE, Wis. — Ethanol producers in the state are calling on the federal government to help their industry. They want a piece of a clean energy jobs bill in Congress, but they said that, more importantly, they want to save what they feel is an important green industry.

While the Badger State Ethanol plant in Monroe is doing well, others in the state haven't been so lucky, WISC-TV reported. The industry said it's because of limits on its market, but others said there might not be a great enough demand for ethanol yet.

At Badger State Ethanol in Monroe, people can find pumps with ethanol blends of 85, 25 or 10 percent, but these so-called "blender pumps" aren't found everywhere, WISC-TV reported.

"We need to continue to expand the market for ethanol and right now as an industry, not just here in Wisconsin, but as a country, we now have pretty much totally saturated the 10 percent market," said Gary Kramer, president of Badger State Ethanol.

Incentives for stations to install blender pumps are only part of what the state ethanol industry would like to see the federal government do. Right now, only 10 percent of regular gasoline can be ethanol, and ethanol producers said they would like to see 15 percent.

"It's the difference between us treading water and being very profitable going into the future, and if we're treading water we're not creating any new jobs," said Kramer.

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Ethanol Leaders Say The time For Action on Energy is Now

Source: Hoosier Ag Today

While it is another hot July day in Indiana, the heat is a bit more intense in Washington where Congress and the Obama administration are feeling the heat to adopt a new energy policy for this nation. Tom Buis, with Growth Energy, says it is time for the US to adopt a plan that moves the nation away from petroleum. Buis says the recent renewable energy plan unveiled by Secretary of Agriculture Tom Vilsack is a good start, “What the Secretary has articulated here is a plan to move forward, and that is what we need, a plan.” He told HAT that without a plan the U S will slip backwards like we have done during all the other energy crises over the past 40 years.

Bius says election year politics must take a back seat to solving our long outstanding energy issues, “What we need are leaders who are willing to put politics aside and work for a policy that is right for this nation.” He said the mood in Washington is very partisan right now and that is what is delaying action on energy issues.

Growth Energy‘s Co-Chairman General Wesley Clark says there is bipartisan support for renewable fuels in the Midwest but not in other parts of the nation, “There is good support among the delegations from Indiana, Ohio, Illinois, and Iowa.” Secretary of Agriculture Vilsack concurred, telling HAT, lawmakers from the east and west coast states need to understand that renewable fuels will benefit their states, too.

MP3 of Tom Buis and General Clark at Hoosier Ag Today. 

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Race Cars Run Faster, Cleaner On Ethanol

Source: Laboratory Equipment

A fuel-injected racing car engine powered by E-85, an ethanol-based fuel, outperforms the same engine with a carburetor and leaded racing fuel.

That’s the finding by a team—dubbed Project Green—that includes a group of automotive researchers from the Dept. of Energy’s Argonne National Laboratory.

They demonstrated during benchmark testing a 7 percent improvement in the torque and speed of a General Motors’ CT525 LS3 fuel-injected engine with a catalytic converter attached to the exhaust system and renewable E-85 in the fuel tank, says Forrest Jehlik, principal mechanical engineer at Argonne’s Center for Transportation Technology. 

The General Motors engine is a popular choice among circle track racers.

“The testing disproves two widely and firmly held beliefs in the circle track racing community: that carbureted engines are inherently more powerful than engines equipped with a fuel injection system; and that E-85, which is less expensive than leaded racing fuel, is not well-suited as a fuel for race cars,” says Jehlik, who leads the benchmark testing for Project Green.

Aside from the garages of classic and vintage car collectors, race tracks are about the only venues these days where engines with carburetors are in active use. Fuel injection systems began replacing carburetors in the early 1980s because they allow for greater fuel efficiency as a result of precise and even fuel distribution to each cylinder.

Moreover, tailpipe emissions from cars with fuel injection engines are lowered because of the precise metering of fuel, thereby reducing the amount of oxides of nitrogen, hydrocarbon and carbon monoxide combustion byproducts.

Catalytic converters, which further reduce the amount of emissions generated by internal combustion engines, are not normally part of the exhaust systems of racing cars. But Project Green’s dynamometer testing of the GM engine utilizing catalytic converters resulted in a 50 to 60 percent decrease in nitrogen oxide, one of the main ingredients involved in the formation of ground-level ozone.

However, there was not an appreciable decrease in carbon monoxide and hydrocarbon emissions.

After analyzing the test data to determine why the decrease was so slight, the team developed a secondary air-injection system that will increase the level of oxygen in the exhaust stream and thereby allow oxidation of those by-products.

Results from on-track testing set for the week of July 12th at the New Smyrna Speedway in New Smyrna Beach, Fla., are expected to validate that new approach.

Professional circle track racing series have been reluctant to require racing teams to use today’s cleaner and more efficient automotive technologies and fuels in their vehicles.

But Project Green is optimistic that these technologies will eventually be adopted by the sport, just as the American Le Mans Series’ Green Challenge has adopted green racing principles established by the DOE, the EPA and the Society of Automotive Engineers.

“If you start getting the racing community to see that cars can run just as fast and more efficiently with fuel-injected engines and domestically produced biofuels that are more environmentally friendly and less expensive, it has the potential to really catch on with race car drivers and their large fan base,” Jehlik says.

“The bottom line is that we have shown that modern fuel-injection technology, renewable E-85 fuel and catalytic converters provide better performance and increased efficiency while reducing emissions; it is a reality today. Truly, there are no compromises. It’s a win-win for everyone, and we believe it is the future of racing and a step towards sustainability in the transportation fuels we use as a country.”
 

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The Ethanol Blend Wall

Source: The Cattle Network

Fuel ethanol is a renewable fuel made from grain or other biomass sources that is blended into motor gasoline. Ethanol blending into gasoline in the United States has been rising strongly since 2002, initially driven by action taken in several States to ban the use of methyl tertiary butyl ether (MTBE), a competing gasoline additive. At the Federal level, the Energy Policy Act of 2005 (EPACT2005) made changes in the requirements for reformulated gasoline that precipitated a Nation-wide phase out of MTBE beginning in 2006. Soon thereafter, the Energy Independence and Security Act of 2007 (EISA) further boosted fuel ethanol demand by accelerating and extending the federal Renewable Fuel Standard (RFS) program that was first established by EPACT2005. The revised RFS requires the use of about 15.2 billion gallons of renewable fuel by 2012 and 36 billion gallons by 2022. EIA expects that 13.2 billion gallons of the 2012 requirement will be met using corn-based fuel ethanol.

Under current Federal regulations, ethanol blends of up to 10 percent (E10) may be sold for use in all gasoline-powered vehicles. E85, a fuel blend with 70 percent to 85 percent ethanol content, may also be sold, but only for use in vehicles that have been specifically designed to accommodate E85. To date, however, E85 is presently consumed in very limited volumes (5,644 barrels per day (bbl/d) in 2008) with only about 1,900 E85 pumps nationwide in 2009, and it is not expected to show significant growth over the short term.

In an environment where nearly all fuel ethanol is sold as E10, saturation of the E10 market creates a barrier to accommodating additional ethanol supply, commonly referred to as the “blend wall”. During April 2010 an estimated 834,000 bbl/d (12.8 billion gallons per year [BGY]) of fuel ethanol was blended into gasoline, representing an average 9.2 percent of total gasoline product supplied by volume. The July EIA Short-Term Energy Outlook projects that the ethanol share of the gasoline pool could reach 10 percent in the first quarter next year when total gasoline consumption is expected to average about 8.8 million bbl/d (135 BGY).

There are 4 primary factors that will influence the ethanol blend wall constraint:

1. E10 sales volume
2. E85 sales volume
3. Ethanol-blending infrastructure constraints that limit the ability to blend and deliver E10 and E85 to local markets
4. Possible relaxation of the 10 percent ethanol blending limit on fuels used in vehicles not specifically designed to accommodate E85.

Absent a relaxation of the 10 percent limit on ethanol blending in the general gasoline pool, and with still increasing ethanol production capacity, there will likely be downward pressure on ethanol prices as the blend wall is approached, which could contribute to an increase in E85 sales within the constraints of its limited infrastructure, an increase in ethanol exports, and lower capacity utilization rates. Over the past year, and especially at the start of 2010, the ethanol price (after deducting the 45 cents per gallon ethanol blender’s excise tax credit) has remained at a discount to reformulated gasoline blendstock for oxygenate blending (RBOB) (Figure 1).

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Growth Energy: Ethanol Not Responsible for Gulf of Mexico Dead Zone

Source: BioFuels Journal

There have been numerous new — and erroneous — attacks on domestic ethanol for contributing to the "Dead Zone" in the Gulf of Mexico.

Big Oil, notably BP, would love nothing more than to change the subject away from the catastrophic results of policies that rely on drilling for oil.

We need to respond to these attacks with the facts about domestic ethanol, and the facts about the Dead Zone, and some perspective.

You can find your local news media outlet — and write a letter to the editor — by clicking here.

You can also write a letter to your Member of Congress; find their address by clicking here.

This graph is from the USGS and charts the total size of the area in the Gulf where dissolved oxygen is less than 2 mg/L.

As you can see, the levels measured from the summer of 2009 are considerably smaller than those from the early part of the decade despite the fact that ethanol production has been on the rise over the same time period and corn yields are up.

Finally, don't forget to turn to these facts any time you see someone in the press or on a blog misstate the facts about ethanol and the opportunities domestic ethanol provides. — this piece on the San Francisco Chronicle website.

There have been other wildly inaccurate portrayals of U.S. ethanol from our critics; we urge you to engage whenever and where ever you can.

• Last year the dead zone in the Gulf of Mexico was estimated to be about 3,000 square miles. Last year, the U.S. produced 10.8 billion gallons of ethanol. In 2001, the dead zone was 8,006 square miles, and ethanol production in the U.S. was 1.8 billion gallons. How do critics of ethanol explain how the dead zone shrunk while ethanol production increased by more than 6 times in the U.S.? (Read more here)
• As of today, the Deepwater Horizon spill could be 12 times the size of the Exxon-Valdez spill in Alaska's Prince William Sound. The Deepwater spill will be much larger before BP is able to cap the well. (see map here)
• Biofuels like ethanol can actually help prevent runoff, according to a recent study of the Chesapeake Bay watershed by the Chesapeake Bay Commission and the Pennsylvania Department of Agriculture. The study found that production of biomass can reduce erosion, absorb excess fertilizer from idle farm fields and capture carbon dioxide as they grow. (read report here)

We've got a longer list of facts about the Gulf on our web site and I encourage you to take a look.

Thanks for your help. And check back to our Growth Energy blog, or follow us on Twitter and Facebook, to join the conversation.

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The Truth About the Gulf of Mexico Dead Zone

Source: Renewable Energy World

There have been numerous new – and erroneous – attacks on domestic ethanol for contributing to the “Dead Zone” in the Gulf of Mexico. Big Oil, notably BP, would love nothing more than to change the subject away from the catastrophic results of policies that rely on drilling for oil. Growth Energy wants you to know the truth behind these attacks, so here are some facts about domestic ethanol, and the facts about the Dead Zone, and some perspective.

• As of today, the Deepwater Horizon spill could be 12 times the size of the Exxon-Valdez spill in Alaska’s Prince William Sound. The Deepwater spill will be much larger before BP is able to cap the well. (see map here)
• The people in Washington, DC, should know that the spill is so big, that if it were layered over the nation’s capital city, it would stretch from deep inside of Virginia, encompass all of the District of Columbia, and stretch to Delaware. (see map here)
• Last year the dead zone in the Gulf of Mexico was estimated to be about 3,000 square miles. Last year, the U.S. produced 10.8 billion gallons of ethanol. In 2001, the dead zone was 8,006 square miles, and ethanol production in the U.S. was 1.8 billion gallons. How do critics of ethanol explain how the dead zone shrunk while ethanol production increased by more than 6 times in the U.S.? (Read more here)
• Everyone focuses on the Gulf of Mexico’s dead zone, but in fact there are dead zones in other bays and lakes that are nowhere near corn ethanol production, including Vermont’s Lake Champlain, and rivers in Oregon and Washington State. So there must be other contributors to the dead zone besides corn ethanol…
• And in fact, the Sierra Club pinpoints many major contributors, including runoff from golf courses and urban centers, livestock manure, dumping from boaters, sewer overflows, lawn fertilizer, atmospheric deposits from power plants and vehicles, and industrial runoff. (read more here)
• Nitrogen and phosphorous come from many sources other than crop fertilizer. And today’s farmers are growing more corn than ever in ways that do not contribute to the dead zone – through the use of precision farming and smart farming techniques, such as buffer strips that collect inputs instead of letting them run into streams that feed the Gulf waters.
• The size of the dead zone in the Gulf of Mexico has varied every year, depending more on weather patterns than anything else. The Gulf’s dead zone was discovered in the 1970s, but it may have existed for a century.
• A 2007 study by Argonne National Laboratory looking at crop years between 1970 and 2005 found corn yields increased by 90 percent. But nitrogen loads to the Gulf of Mexico, tracked from 2001 to 2005, showed a 21 percent decline.
• Farmers in the Mississippi River Basin, which feeds the Gulf of Mexico, are using conservation and residue management plans on 20.8 million acres. Nutrient management plans were applied to 18.3 million acres. Farmers restored, enhanced or created an additional 1.4 million acres of wetlands, according to the USDA, and installed as much as 2.3 million acres of conservation buffers.
• Biofuels like ethanol can actually help prevent runoff, according to a recent study of the Chesapeake Bay watershed by the Chesapeake Bay Commission and the Pennsyl¬vania Department of Agriculture. The study found that production of biomass can reduce erosion, absorb excess fertilizer from idle farm fields and capture carbon dioxide as they grow. (read report here)

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USDA Produces Short Video on Ethanol, E85

Source: Ethanol Producer Magazine

Just two weeks after USDA released its “Regional Roadmap to Meeting the Biofuels Goals of the Renewable Fuels Standard,” it now has a short video, touting the importance of ethanol and other biofuels in reducing U.S. dependence on fossil fuels.

The ethanol industry needs to go national, said Secretary of Agriculture Tom Vilsack, in the video. To build the 527 biorefineries the USDA estimates will be needed to meet the goal of 36 billion gallons by 2022, a variety of feedstocks will need to be used, depending on the strengths of that region. “It’s an opportunity for us to make sure that … ethanol is more readily available to folks in all parts of the country and all four corners of the country,” he said in the video.

USDA has also indicated that infrastructure is an important part of the success of biofuels. “There are a number of potential barriers and bottlenecks in the current ethanol use supply chain,” the report said. “While we expect the market to respond to the infrastructure needs of a growing industry, we recognize that the path from production to actual consumption presents challenges that will need to be anticipated and addressed.”

Besides additional blender pumps, the U.S. needs infrastructure to distribute ethanol by rail or truck as well as blending terminals and storage facilities. The report also singled out California, Texas and Florida as possible primary targets for more blender pumps and flex-fuel vehicles. 

You can view this video on Growth Energy's multimedia page.

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Growth Energy Announces Winners of Fuel on the Fourth Promotion

Source: Growth Energy

WASHINGTON, DC – Growth Energy, the coalition of U.S. ethanol supporters, today announced the winners of their one month “Fuel on the Fourth” contest offering nearly $300 in flex fuel cards to Flex Fuel Vehicle (FFV) owners. Contestants had one month to submit a photo of themselves with their FFV along with a caption describing why they choose to buy flex fuel for their vehicle.

Two winners were selected from the submissions. First place winner Jane Marie Connell of Granite Falls, Minn. and second place winner Harvey Fliehs III of Groton, S.D. will receive flex fuel cards worth $185 and $85 respectively, to be used for the purchase of flex fuel for their vehicles. Both winners will receive their cards in time for the Independence Day weekend.

Connell’s name was chosen through a random drawing for the first place prize while second place winner Fliehs was selected for his creative submission and photo (please see attached). In his submission, Fliehs, a farmer in South Dakota, wrote, “Using flex fuel is an everyday reminder that the corn we produce is making a positive impact on our community, environment and country. Our family is a 3rd generation farm, where not only the farm is passed down but the name as well. We're proud to provide a sustainable fuel source that we can pass down to generations to come.”

The Fuel on the Fourth promotion was designed to show the benefits of Flex Fuel Vehicles – which are capable of operating on any combination of conventional and renewable fuels – and recruit additional members to Growth Force, a group that believes in a cleaner, greener America through the use of biofuels. All contestants who submitted photos joined Growth Force’s free membership.

“As we celebrate our nation’s independence, we are proud to provide these Flex Fuel Vehicle owners with America’s independent fuel,” said Growth Energy CEO Tom Buis. “Using flex fuel in our vehicles will help reduce our nation’s dependence on foreign oil, clean the air we breathe and strengthen our national security.”

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Vilsack Urges Swift EPA Approval Of E15 Blend

Source: E&E (Subscription Required)

The Obama administration should approve higher blends of ethanol in gasoline as quickly and broadly as possible, Agriculture Secretary Tom Vilsack told a Senate panel today.

Raising the amount of ethanol blended in gasoline to 15 percent from 10 percent would support the industry, meet the U.S. biofuels mandate and revitalize rural economies, Vilsack said.

"We are very, very close to hitting the E10 wall, which is why this is important," Vilsack told the Agriculture Committee. "The sooner it is made, the better, the more expansive it is made, the better."

All signs point to EPA approving the higher blends, according to Vilsack, although it may exclude older cars or certain types of automobiles.

"They have indicated that they are prepared in the fall to authorize E15; the question is, what level?" he said.

Without higher ethanol blends, the United States will struggle to meet mandates for renewable fuels, Vilsack said.

The national renewable fuel standard, which goes into effect next month, mandates that the United States produce 36 billion gallons of renewable fuel by 2022 -- with 15 billion gallons of that coming from ethanol.

Biofuels trade group Growth Energy petitioned EPA for the waiver in March 2009. The agency officially had 270 days to decide.

EPA officials had said they would have a decision this summer, after the Energy Department completes more tests on vehicle safety. But agency officials said this month that the decision would not come until fall -- inciting the ire of biofuels advocates and lawmakers from Midwestern states.

EPA said last December that cars from 2001 or newer can accommodate E15 but raised questions about whether older engines can handle the mix.

Bill would support blender pumps

In a bid to expand the market for ethanol-rich fuels, two Midwestern lawmakers introduced legislation today that would offer incentives to help increase the number of pumps that offer higher blends of ethanol.

The bill from Reps. Stephanie Herseth Sandlin (D-S.D.) and Adrian Smith (R-Neb.) would subsidize half the cost of installing blender pumps and storage tanks.

Gen. Clark Says Renewable Energy The ‘Peace’ Fuel Of The Future

Source: Farm & Ranch

As a four-star general who served as NATO Supreme Allied Commander from 1997 to 2000, Gen. Wesley Clark has been in a unique position to see how vital energy independence is.

“Is there any doubt about what America's dependence on foreign oil has meant?” said Clark at the 2010 Renewable Energy Action Summit held in Bismarck, N.D.

He said Secretary of State Baker “was real clear” that the 1990 war with Kuwait was about protecting foreign oil supplies.

“In 2002 in the runup to the second war with Iraq, we were a lot hedgier. Couldn't get anybody to admit the war was about oil,” Clark said. “But the truth was, it was about oil. And today Iraq is sitting on the world's greatest, undiscovered and undeveloped reserves of hydrocarbons. It is there, protected by Saddam all these years and that was what these last few years have been all about.” As co-chair of Growth Energy, Clark is involved in all kinds of renewables:, including ethanol with Poet in South Dakota, wind, solar - while still working on boards that deal with oil.

He ran for U.S. president in 2004, then became a businessman. U.S. Sen. Byron Dorgan, who organizes the summit each year, said the U.S. needs to develop domestic energy strategies that are a mix of renewables - wind, biomass, biofuels, solar - along with drilling domestically.

“The new, big thing here is the Bakken shale (an oil formation in western North Dakota) for sure, but it's not the only new thing. I'm a big fan of doing it all,” Dorgan said at the summit.

He said he expects an energy bill with a renewable energy and carbon credit component to be out of the Senate by the end of summer.

“We need a renewable fuel standard, higher blends for ethanol, and new technology in renewables applied to it,” Dorgan added.

Clark said there is no way the U.S. will survive without developing ethanol, biodiesel and other domestic, renewable energies.

“We cannot move forward as a nation paying $300 billion a year out of our economy to other countries to support our energy consumption,” Clark said. “Can't do it - won't be able to make it. That is more than the health bill; that's your children's education.”

Clark said before the late 1960s, the U.S. actually used to export oil, not import oil.

He began in the energy business by studying nuclear engineering and Middle Eastern policy at West Point.

“I came back from Vietnam and I was teaching economics at West Point. Suddenly it occurred to all of us up there that we were no longer an oil exporting nation.”

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