News Archive - 01/2012

Corn check-off funds being used for a wide variety of projects

Source: Farm & Ranch Guide

DEVILS LAKE, N.D. - Check-off funds paid by North Dakota corn producers are being used for a wide variety of projects, according to Tom Lija, N.D. Corn Growers Association executive director.

Lija gave his report at the Lake Region Extension Roundup that was held recently in Devils Lake. The group's present activity list ranges from corn breeding to working with federal crop insurance programs for corn growers in the state.

"It could be summed up as quite a few things going on at the moment," Lija said, before going into more detailed accounts on some of the programs.

Ethanol: The group has been working on initiating a "flex fuel blender pump" program in the state, and they are looking at doing an information campaign for those flex fuel vehicle owners. He noted that currently there are over 200 of the blender pumps installed across the state at 50 different locations.

"Overall, I would say the program has been a very successful program, in terms of renewal energy," he said.

Lija also noted that in 2009 the flex fuel vehicles in the state were using about 23,000 gallons of the E-85 blend each month. As of a month ago, that total is close to 112,000 gallons a month.

The number of flex fuel vehicles has increased significantly during the same time period. In 2009 the number of flex fuel vehicles registered in the state totaled 23,345. According to the latest figures that figure has jumped to 64,630 registered vehicles at the end of 2011.

Currently a campaign is underway to increase awareness of what flex fuel vehicles are capable of.

"Only 20 percent of the flex fuel vehicle owners know what they have,"Lija said, "and the auto industry isn't that familiar with flex fuel vehicles, either. The overall goal of the campaign is to increase usage 6 to 10 percent state wide, and we certainly think that is achievable."

Nitrogen related research: The rapidly escalating prices of inputs for corn has caused some concern, and one of those areas where costs have increased is for nitrogen fertilizer.

The NDCGA has invested about $40,000 to study the feasibility of collecting the natural gas that is now being flared off at the oil wells in the western part of the state and using energy from wind power to convert that to nitrogen fertilizer. The project is in the concept stage at this time.

In addition, work is now being done to explore if the corn grown in this region can be sold at a premium, if some of the inputs going into raising that corn - such as the nitrogen process just mentioned - come from renewable sources.

"We do think we have a pretty good opportunity to tie into what's going on in the western part of the state," he said.

NDSU corn breeding program: For the past four years the NDCGA has been assisting the efforts of Dr. Marcelo Carena, head of the corn breeding program at NDSU.

ÒDr. Carena has really turned the corner on crossing a lot of the NDSU material with industry material, and it looks like he has some very good potential for commercial success,Ó Lija said.

"Dr. Carena submitted seven inbreds for test crossing and we have four of those that did get advanced in their trials."

The NDCGA also recently asked the State Board of Agricultural Research and Education (SBARE) to place a priority on getting an assistant corn breeder in the program and also requested they look at adding a corn pathologist to the NDSU Extension program.

"With over 2.5 million acres of corn now we certainly think that is a pressing need and the State Board of Ag Research did seem amenable to that," Lija said.

Crop insurance: The NDGCA spent some time with the Risk Management Agency (RMA) in looking at crop insurance rates for corn and also low test weight issues. And, according to Lija, several additional counties in the state will now be eligible for crop insurance protection for corn without filing extra paperwork. These counties include-Cavalier, Bottineau Towner and Rolette along the northern tier of counties in the state; and Morton, Oliver and Mercer counties along the Missouri River.

"Producers in these counties will now not have to file for written agreements," he explained. "They simply will be able to go into their crop insurance agent. RMA stated they now have enough data to prove, agronomically corn is a generally accepted farming practice in these counties, and we are pretty happy that happened."

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Fort Wayne Opens First Flex Fuel Pump

Source: Inside Indiana Business

Indianapolis, Ind. -- Fort Wayne residents now have more options when it comes to using ethanol blends when fueling their flex fuel vehicles (FFVs) with the opening of a new flex fuel pump by Lassus Handy Dandy at their new location at Dupont Road and I-69.

The flex fuel pump - the first of its kind in Fort Wayne - offers FFV owners a choice of two different ethanol blended fuels, E85 and E30. Drivers of flex fuel vehicles can use up to an 85 percent (E85) blend of ethanol-to-gasoline in their cars and trucks.

Lassus Handy Dandy is one of six companies to participate in a new program launched by the Indiana Corn Marketing Council (ICMC) last year that awards cost-share dollars to fuel retailers in Indiana looking to install flex fuel pumps. Currently, the Flex Fuel Pump Program - funded by corn checkoff dollars - has awarded grants for 14 flex fuel pumps to be added at fuel stations across the state.

"Hoosier corn farmers believe consumers should have choices at the gas pump when filling up their vehicles and we are excited to be partnering with Lassus to bring this choice to Fort Wayne drivers," said Mike Shuter, ICMC president and farmer from Frankton, Ind. "The Flex Fuel Pump Program allows consumers to select the type of ethanol blend they want to use in their flex fuel vehicle and take advantage of the potential cost benefits of ethanol while using an environmentally-friendly, renewable American-made fuel."

The Flex Fuel Pump Program offers fuel retailers grants up to 50 percent or $20,000 (whichever is less) toward the purchase of a flex fuel pump, hardware and storage tank or the conversion of an existing pump to a flex fuel pump. The program is open to both new and existing stations in Indiana. ICMC is currently accepting applications for the program.

Source: Indiana Corn Marketing Council

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Five stations earn grants for ethanol blender pumps

Source: Argus Leader

The Governor’s Office of Economic Development has approved five grant applications for ethanol blender pumps, an award the Legislature recently approved .

Fuel stations can apply for grants to install pumps that dispense blends of 10 percent ethanol, 15 percent or more ethanol, and 25 percent or more ethanol. Station owners will be reimbursed up to $25,000 for the first pump and $10,000 for each pump thereafter.

As of Monday, 14 stations had applied and five had been approved:

• Main Stop, Scotland: $25,000 for one pump
• Cenex, Toronto: $35,000 for two pumps
• Eagle Stop, Wakonda: $25,000 for one pump
• Mac’s Corner, Stephan: $35,000 for two pumps
• Farmers & Merchants Co-op Oil, Madison: $35,000 for two pumps.

The state plans to spend $3.5 million over five years on the program to expand ethanol dispensing infrastructure in the state.

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Ethanol In Context

Source: The Izaak Walton League of American

Ethanol, specifically corn ethanol, has become quite a contentious issue. We deride its short comings in public debates and highlight every aspect of its production and use that doesn’t achieve our goals of what the fuel of the future should be. Our arguments for and against ethanol often sound as if we’re talking about a wholly isolated topic. But we’re not. We’re talking about fueling vehicles. With the current market and state of technology dominated by liquid fuels, there are just two primary options: gasoline and ethanol. So an anti-ethanol stance is effectively pro-gasoline. Therefore, when we weigh the shortcomings of ethanol, we need to make sure our scale is calibrated to gasoline.

Energy Balance
Critics often call out ethanol for its poor “energy balance.” Technically speaking, a fuel’s energy balance is calculated by dividing the usable energy contained in the fuel as a finished product by the energy that was required to produce that fuel. One gallon of ethanol (which contains approximately 76,330 BTUs* of energy) requires about 56,500 BTUs of energy to produce. This result gives corn ethanol an energy balance of 1.35. Another way to think of it might be that we put about 7.5 gallons of ethanol in to get 10 gallons out. It’s a small gain, what with all the growing, harvesting, processing, and distribution involved in production.

But what about gasoline? That takes no small amount of extraction, refining, and distribution to produce. For each gallon of gasoline (which contains approximately 116,090 BTUs of energy), the entire production process uses about 142,800 BTUs. That means that gasoline’s energy balance is about 0.82. In other words, we must put in 12.2 gallons of gasoline to get 10 out. Few people realize that we actually lose energy by producing gasoline. If corn ethanol was simply less of an energy loss than gasoline, it would win by comparison — but ethanol is actually an energy gain.

It is also a common argument to call out ethanol for its lower miles per gallon (MPG) value than gasoline. As indicated, the energy content of a gallon of ethanol (about 76,330 BTUs) is less than gasoline (about 116,090 BTUs) — about 35 percent less. Less energy per gallon means we can perform less work by burning that gallon. However, case studies and personal experiences have not shown a 1 to 1 correlation between the energy content and MPG result of using ethanol. For example, although a fuel mix of 85 percent ethanol (E85) has 29.1 percent less energy than pure gasoline, observed mileage reductions are typically in the range of 15–20 percent. This is due to ethanol’s higher octane rating, which allows more efficient conversion of ethanol’s energy potential into actual miles traveled. And this balance could be even more favorable as vehicle technologies advance to better handle a variety of fuels.

Water Use
Another point of concern regarding corn ethanol is water consumption. Advances in ethanol production have lowered water use down to around 3 gallons of water per gallon of ethanol produced. On top of this, water used to produce corn (which is dominated by irrigation) adds anywhere from 5 to 300 gallons of water per gallon of ethanol, depending on where in the United States the corn is grown. Gasoline production edges out ethanol by using about 2.5 gallons of water per gallon of gasoline produced. However, with greater reliance on crude oil sources like tar sands, this number will jump to around 6 gallons of water per gallon of gas.

In water use, ethanol initially looks like a loser, particularly when taking into account energy content. However, water used to irrigate crops tends to cycle back around, but water used for tar sands mining gets stored in toxic tailing ponds that require active deterrents to ensure migrating birds don’t land on the water and die. So each fuel’s environmental impact regarding water use is also less cut and dry.

Crop Consumption
An often noted statistic from the U.S. Department of Agriculture suggests that around 40 percent of the corn produced in the United States is used for ethanol. However, there are caveats to this number that aren’t often highlighted. Corn used for ethanol (yellow corn #2) is not the variety of corn used for human consumption. So it’s too simple to suggest that a bushel of corn used for ethanol directly reduces a bushel for someone to eat. Additionally, if you take into account co-products of the ethanol process, such as animal feed, a more accurate number for ethanol’s take of the U.S. corn crop is closer to 20 percent. By comparison, in 2010, a full 40 percent of the U.S. corn crop went straight to animal feed. Although ethanol is clearly a part of the agriculture market, the demand drivers affecting corn and food prices — which include market speculation that can cause significant price fluctuations — are much more varied.

Additional Considerations
Gasoline infrastructure is already established, and ethanol is difficult to move through pipelines due to corrosion and other issues. On the other hand, corn ethanol is more renewable than gasoline. But increased demand for corn is a partial driver of global land use changes. Closer to home, corn ethanol raises pressure on issues like the conversion of prairie to farm land. However, gasoline demand increases environmental impacts from drilling, flaring, and spills during transportation. Either way, the Gulf Coast gets hit — dead zones as a result of excess fertilizer use on farms or massive oil spills as a result of our demand for crude sources. Clearly, the list of faults when comparing corn ethanol and gasoline can grow rapidly if you’re being thorough.

The Result
When all is said and done, it’s important to balance our criticisms with a focus on our goal: Improved transportation fuels. Every point we make has to account for a frame of reference, and it really begs for complaints against corn ethanol to be a bit more measured.

This article might suggest that I’m proethanol. Actually, I’m pro-better-fuels. The future of gasoline is expanded tar sands extraction or deep water drilling, negligible improvements in refining, expanded pipelines over vital aquifers, and long-buried pollutants released into our atmosphere.

In comparison, the future for ethanol is not nearly as dreary. Ethanol plants that use coal for heat are converting to natural gas, while others are integrating biomass-based energy into their systems. The industry as a whole is also advancing — producing more ethanol using less energy, less water, and less corn per gallon. As corn ethanol improves, better and more beneficial biofuels are coming along for the ride, including cellulosic ethanol — fuel produced from other crops and non-food plant materials. The infrastructure used to distribute corn ethanol can do the same for fuels created from more sustainable feedstocks.

Last but not least, it’s important to note the changing playing field. Nearly every major auto manufacturer has or is in the process of introducing an electric vehicle. And natural gas, hydrogen, and other fuel opportunities are being explored. Although not every new option will be an improvement, we need to judge each fuel in the context of competing alternatives to understand its benefits. I’d rather not support a step backward when our new footing puts us ready to leap forward.

— Eric Jensen is the Energy Coordinator for the Izaak Walton League’s Midwest office in St. Paul, Minnesota. He holds a degree in Chemical Engineering from the University of Wisconsin-Madison.

* A BTU or British thermal unit is a common unit of energy approximately equivalent to the amount of heat needed to raise the temperature of a pound of water by 1 degree Fahrenheit.

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USDA Now Accepting Applications for REAP Funding

Source: USDA

USDA announced today that it is accepting applications for Renewable Energy and Energy Efficiency Projects through the Rural Energy for America Program (REAP).

REAP is designed to assist farmers, ranchers and business owners to build renewable energy projects and help meet the nation's critical energy needs.

For 2012, USDA has approximately $25.4 million available to fund REAP activities, which will support at least $12.5 million in grant and approximately $48.5 million in guaranteed loan program level awards.

USDA is now accepting the following applications:

• renewable energy system and energy efficiency improvement grant applications and combination grant and guaranteed loan applications until March 30, 2012;
• renewable energy system and energy efficiency improvement guaranteed loan only applications on a continuous basis up to June 29, 2012;
• renewable energy system feasibility study applications through March 30, 2012; and
• energy audits and renewable energy development assistance applications through February 21, 2012.

More information on how to apply for funding is available in the January 20, 2012 Federal Register, pages 2948 through 2954.

Please contact Director or Regulatory Affairs, Chris Bliley at 202 545 4000 if you have any questions.

In addition, USDA launched a new energy web site to serve as a one-stop-shop for data on energy. To visit the site, click here.

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Ferrari FF Gets 887 HP Bio-Ethanol E85 Conversion

Source: AutoEvolution

The Ferrari FF is am incredibly impressive machine, as it mixes a multitude of assets with the Prancing Horse’ spirit. However, there will always be some who want more, and if that includes seriously upping the ante on the hp front and making the vehicle much greener at the same time, we want to know about it.

Norwegian aftermarket developer Customised.no has developed a bio-ethanol E85 conversion for the Ferrari FF, which takes the car’s V12 unit from the stock 660 hp to 887 hp, while seriously reducing emissions.

Eco fans will want to know about the last part, so we’ll explain that the FF drops from 360 g/km to under 100 g/km, a value that rivals that of diesel superminis. Remember, all this happens in a car that can deal with the 0 to 62 mph game in under 3 seconds (the stock time sits at 3.7 seconds).

The vehicle shown in the adjacent image has been reportedly converted by a Ferrari dealer, so there might even be slight hopes of the warranty being maintained, but there’s no official info on this.

Via: thecarfinders.co.uk

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Iowa Corn To Sponsor June 23rd Iowa Corn Indy 250

Source: PaddockTalk

Officials from the Iowa Speedway announced today that the Iowa Corn Growers Association and the Iowa Corn Promotion Board will continue their title sponsorship of the annual Iowa Corn Indy 250 event at the 7/8-mile tri-oval on Saturday, June 23.

The 2012 Iowa Corn Indy 250 will be one of the most anticipated races on this year’s INDYCAR schedule. Last year’s event at the Rusty Wallace designed track was a highlight with one of the best open-wheeled race finishes as Marco Andretti and Tony Kanaan kept spectators standing until the spectacular finish.

Craig Floss, CEO of Iowa Corn, expressed his excitement for the sponsorship and for the continued support of the IZOD INDYCAR series as a promoter of ethanol. “Iowa Corn looks forward to our sixth year as the title sponsor of the Iowa Corn Indy 250 powered by ethanol. This year will be exciting as INDYCAR moves to E85. Consumers can fill up their flex fuel vehicles with E85, and drive just like the pros, except with a speed limit of course.”

In 2006, the INDY Racing league switched to ethanol. Since then, the league has saved an estimated 20,000 gallons of fuel per season. In 2012, the league will use E85-an ethanol blended fuel with up to 85% ethanol and 15% gasoline to be closer to products consumers can find at the pump. E85 can be found at more than 160 stations throughout Iowa and can be used in 1 in 10 Iowa vehicles designated as Flexible Fuel vehicles.

Iowa Speedway President Stan Clement shared his feelings about one of the best partnerships in all of motorsports.

“Iowa Corn has been sponsoring this race since our inaugural season, a sponsorship which is now entering its sixth year,” Clement said. “It’s been a tremendous relationship, and we value their partnership, both with us and our race fans.”

One of four ovals on the 2012 IZOD INDYCAR Series schedule, the Iowa Corn Indy 250 will be the headlining race of an open-wheel weekend on Friday, June 22 and Saturday, June 23.

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New Blender Pump Opens up in Arcadia

Source: Nebraska Corn Board

Lincoln, NE-A new blender pump is now open in Arcadia at Trotter Service.

This E85/blender pump is one of approximately 60 in Nebraska to offer the renewable fuel, ethanol. This station will offer unleaded, E10 and other mid-level ethanol blends including E85 and diesel. Trotter Service in Arcadia is a full service station. To find a list of retailers that offer E85 and other mid-level ethanol blends visit the Nebraska Ethanol Board website at www.ne-ethanol.org or check the Nebraska Corn Board website at www.nebraskacorn.org.

Over 117,000 Nebraska motorists currently own a flexible fuel vehicle which can run on any blend of ethanol and gasoline, up to E85. To confirm if a vehicle is flex fuel, drivers can check their owner’s manual, their gas cap, look for the flex fuel emblem on their vehicle or visit the website www.ne-ethanol.org/e85.

“E85 is cleaner than gas, it’s produced right here in Nebraska and more and more vehicles can use it every day,” said Todd Sneller, Nebraska Ethanol Board’s Administrator. “When flex fuel drivers fill up on E85, they’re strengthening Nebraska’s economy, making our country more energy independent and going easier on the environment,” Sneller said.

“Giving consumers a choice is also another benefit. This new blender pump will offer flex fuel vehicle owners a fuel choice based on price, performance, and availability,” said Kim Clark, Ag Program Manager with the Nebraska Corn Board.

Sign up for the Nebraska Ethanol Board’s FFV club for updates of new E85 locations and other announcements. Go to www.ne-ethanol.org/ffv to sign up now.

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‘Generic fuel’ might make good slogan

Source: Ethanol Producer Magazine

Ethanol – the generic fuel. Nice phrase that might have some merit as a slogan. It’s adapted from a letter to the editor from Merle Wise, Sebastian, Fla., that was posted on www.tcpalm.com, the website of several newspapers serving the Florida Coast and Palm Beaches. The letter was about how the Ineos New Plant BioEnergy cellulosic ethanol plant under construction in Vero Beach, Fla., would provide jobs.

In his letter, Merle made an interesting argument I haven’t seen before: “Ethanol is the ‘generic’ for gasoline. It's produced from sugar in Brazil and the Philippines, from corn in the United States and can be produced from a number of renewable crops.”

I like that. It’s a different twist to talking about the renewable fuel that reminds a person how adaptable ethanol is. The industry has taken an ancient biologically-based process, fermentation to alcohol, and created a large-scale, increasingly more efficient process producing a fuel that is making a difference in the market. The U.S. is dominated by corn ethanol because the Midwest is best place in the world to grow corn. In Brazil, it’s sugarcane. Russia doesn’t have a lot of ethanol production, but we ran a story several months ago how they are seriously looking at using potatoes from a region that has big potato production. Sugar beets is the feedstock of choice in Europe.

And, of course, there’s the promise of cellulosic ethanol using any one of a number of waste streams high in cellulose. The plant under construction in Vero Beach is commercializing a process developed by Ineos, one of Europe’s big chemical companies. They intend to use municipal solid waste and agricultural wastes to generate power and make ethanol. Indeed, cellulosic ethanol may be the solution to urban waste problems. Rather than landfilling MSW, it will be used for energy. One of the big investors in cellulosic ethanol projects right now is Waste Management, North America’s largest firm specializing in garbage hauling and landfills.

We are very, very close to seeing this take off. The first commercial-size cellulosic plants are under construction. It’s a critical step. Range Fuels is one spectacular example of a process that wasn’t sufficiently vetted before scale-up, and it sank the company. We regularly talk to many cellulosic developers, who always exude great confidence, although most have been methodical about thoroughly testing and tweaking their processes. Many are very close to seeing if they’ve been smart enough to get it right. If they are, I predict three areas will quickly see cellulosic ethanol plants sprout up -- cities with serious landfill problems, forested areas with abundant and underutilized wood resources and prosperous corn ethanol producers who have part of the infrastructure in place and some low-hanging fruit for cellulosic feedstocks.

One big hurdle must be overcome: we have maxed out E10. Just about all of ethanol possible is now being blended with gasoline. E15 is on its way to full approval, but it needs to be successfully introduced as an E10 replacement. There’s a lot of work being done to pin down how to optimize engines for ethanol. Right now, the crappy mileage when using higher ethanol blends is most often a result of engines still being optimized for gasoline, and not taking full advantage of ethanol’s higher octane rating. Instead, we’ve heard that refiners are using ethanol’s octane so they can refine more gasoline out of a barrel of crude and get their high-priced crude to go a little further.

If we’re at the blend wall now with just corn ethanol production in the U.S., there won’t be a market for the cellulosic ethanol when it finally comes online. That is why keeping incentives for cellulosic ethanol in place in the RFS and elsewhere is so important. It is critical that people with FFVs begin using E85. It would be a game changer if FFVs were to start performing better using higher blends, which those engine optimization efforts may yet show.

Merle’s letter attracted the usual anti-ethanol comments, as will this blog, no doubt. It is a long, hard slog, to turn that sentiment around. But we just have to keep at it. Many of the anti-ethanol arguments are based on distortions and downright fiction. A few have merit, and keep the industry on its toes. Is ethanol a perfect fuel? No. Is gasoline? It’s far worse, in my opinion. You could say -- choose your poison. For me, I’ll down ethanol any day, in the form of wine or a good micro brew. Not only is ethanol the generic fuel, it’s a generic spirit.

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Oregon based fuel company Sequential Biofuels adds new jobs, second Eugene station

Source: KMTR NewsSource 16 (Eugene, Ore.)

EUGENE, Ore. (KMTR) -- Driving new jobs and a greener way to fuel your car, expansion in Eugene for the Oregon-based fuel business Sequential Biofuels, as the company has just opened up its second retail gas station in west Eugene.

A small Oregon company with roots in Eugene, Sequential Biofuels has expanded with the opening of its second company-owned station on 18th and Chambers in Eugene, near the Albertsons grocery store and Eugene Coffee Company. While Sequential has special pumps and product out for sale at other gasoline stations and sites across Oregon, the company only has two stations now that it owns itself.

What makes Sequential Biofuels different from the other big box gas stations is the different types of fuels the company sells and where the fore sale gasoline and bio-fuel blends come from.

The company prides itself on being an coconscious fueling retailer who’s products are available for use in nearly every single car on the road.

At the new location, Sequential is selling four different types of fuel, including E-10, E-85, Biodiesel 5 and Biodiesel 99.

E-10 is a 10% ethanol, 90% gasoline blend. By Oregon law, all gasoline retailers are required to blend their “regular” fuel with 10% ethanol.

The E-85 blend is 85% ethanol and 15% gasoline for use in “Flex Fuel” cars.

Sequential’s Biodiesel is available in 5% or 99% blends.

The fuel used is all made locally in Oregon as well. All of Sequential’s ethanol fuel is made in Cornelius, Oregon, by a company that uses food waste to make ethanol. The Biodiesel is made at a facility in Salem.

“The high level message is, 'hey, come try us out.' You're going to find our fuel performs as good or better than any other fuel you're going to buy in town and we're a local company,” says Ian Hill, CEO and Co-Found of Sequential Biofuels.

“This is about creating and supporting a local economy and keeping those dollars closer to home,” says Hill.

While Sequential’s new station is on both sides of the road at 18th and Chambers, the station operates as one whole.

Next up for the site, Sequential will finish a remodel of the old Circle K store at the station by early February 2012. There, Hill says the shop will sell local foods like pastries and sandwiches, also local beers and other drinks.

In the near future, Sequential is hoping to install a solar panel array at the 18th and Chambers location. It’s also considering putting in some electric car chargers and storm water recycling technology.

The fuel company’s other station on McVay Highways near Lane Community College remains open for business. That site open in 2006.

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Mid-State Energy Brings E85 to Ft. Myers, Fla. Drivers

Source: DomesticFuel.com

Ft. Myers, Fla. flex-fuel drivers now can fuel up with E85 thanks to Mid-State Energy, Inc.

The Ft. Myers Marathon station, opened the E85 station last week. Mid-State Energy also opened up a Circle K E85 fueling station in 2010 in Lake Wales, Fla., with partner Protec Fuel.

“Our company believes in not only giving choice to our customers,” said Ken Allen, Jr., president of Mid-State Energy, “but in providing options that will help our country to become more sustainable and help in some little way to minimize our dependence on foreign oil.”

Protec Fuel, based in Florida, has partnered with Mid-State Energy to manage the E85 installation and provide fuel for the company’s new greener burning fuel offering. Protec is a turnkey E85 company specializing in station conversions and fuel distribution. Flex-fuel vehicles can run on E85 and gasoline. E85 is a blend of 85 percent ethanol and 15 percent gasoline.

“We commend Mid-State for its dedication in not just opening one E85 station, but its second station as well,” said Todd Garner, CEO of Protec Fuel. “Plus, Mid-State is not only choosing to offer a cleaner-burning option for customers, but a way to differentiate itself in the marketplace,” he said.

Mid-State Energy says it hopes to offer multiple alternative fuels, such as E85 and biodiesel, at the location someday. Besides E85 selling at a lower cost than conventional gasoline at the Ft. Myers and Lake Wales locations, it is better for the environment and supports our U.S. and local economies.

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USDA fuel pump grant seen a plus for Marcus Junction

Source: Le Mars Daily Sentinel

A "great marketing tool" is how Carl Nelson, of the Marcus Junction board, describes the new flexible fuel blending pump he says is expected to be installed at the Marcus Junction fuel outlet, along Highway 3, within the near future.

The blender is being made possible through a $7,500 USDA Rural Development Rural Energy for America Program (REAP) grant awarded last month.

It is one of five such grants to be awarded in Iowa as a part of the program.

U.S. Agriculture Secretary Tom Vilsack said it is seen as "stabilizing energy costs to create an environment for job growth" in rural America.
Kim Clay, area specialist for business programs at the USDA's Rural Development office, Le Mars, says she's grateful her office had opportunity to be a part of facilitating the grant.

"Iowa is the leader in the country when it comes to biofuels, but we still have a relatively limited number of pumps offering consumers anything more than E10," he said. "We have a potential great demand for E15 and E85, we just need more facilities that can offer them.

"We are pleased to be helping Marcus Junction with the installation of their station's first flexible fuel pump," he said referring to the grant covering 25 percent of the total project cost.

Nelson said he and others on the Marcus Junction, LLC board, feel customers will welcome the new fuel options made available with installation of the blender pump.

The station currently has 12 diesel pumps, 11 gas pumps and one E85 pump. This will be the station's first flexible fuel pump.

"Our customers have indicated their desire for additional fuel options," he said. "We've seen some customers blending their own fuel when they pull up, but this is going to make it a lot more convenient for them.

"I see the new pump at the same time helping increase our E85 sales, which since the fuel became available have been amazing," Nelson said.

He also added his appreciation for the support of his board in planning for the new blender pump and assistance of the Siouxland Interstate Metropolitan Planning Council (SIMPCO) in grant preparation for the project.

"We feel we've, you might say, been ahead of the game when we first opened (in 2006) as the first in the county offering alternative fuels," Nelson said. "Our investors who pooled their money together to get it started gave a lot of thought to the site layout and what could best serve our customers. We see this as taking another step forward."

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Fuel Testing Reveals Higher Octane in Ethanol, Adding Improved Performance Benefits

Source: Governors' BioFuels Coalition

Colwich, KS—Last July, it might have seemed surprising when the government announced ambitious plans to raise corporate average fuel economy (CAFE) standards to 54.5 MPG by 2025.

However, across the map, from Detroit to Japan, the automotive industry said that the seemingly impossible MPG number was an attainable goal.

What’s more, the bulk of the heavy lifting to get there will be accomplished by utilizing high-efficiency internal combustion engines that deliver lower C02 emissions per mile.

One hurdle to address is that these high-efficiency engines need higher-octane fuel to realize their full fuel efficiency and performance potential.

Making higher octane gasoline at the refinery is an expensive process, which is then passed on to the consumer.

Could a cheaper and more environmentally-friendly source of octane be found in ethanol?

The answer is a resounding, ‘yes,’ according to the fuel testing results that were just released.

The fuel research was conducted by AVL, a global industry leader for the development of powertrain systems with internal combustion engines, instrumentation and test systems.

The first phase of fuel testing began in January 2011 and ended in December 2011; the fuel testing study was funded in part by ICM.

Identifying A New Way to Test Fuel

Recognizing ethanol’s full octane value required some practical thinking about how ethanol is added to fuel, and to show how ethanol performs in new direct-injection engines.

The AVL tests incorporated multiple gasoline base fuels, various compression ratios and several automotive fuel systems to demonstrate ethanol’s performance.

One of the surprising results revealed in this testing was the additional benefits of ethanol’s favorable octane sensitivity.

By plotting both ethanol’s chemical octane and sensitivity benefits along with the cooling effect, test results showed that ethanol offers twice the octane potential.

The focus of testing was to evaluate the various fuel blends along a range of knock limit operation rather than just evaluating one set point as is done today.

“Until now, most testing of ethanol allowed match blending and the base gasoline varied each time ethanol was added – which yielded inconsistent results due to variability of the gasoline fuel.

“As an effect of this particular testing approach, it limits the ability for results to show increased performance of ethanol.

“This new testing data has proven to be a great tool to illustrate how much performance can be achieved by simply adding ethanol to gasoline.

“We are seeing a significantly higher value for ethanol and use of intermediate blends to support the changing needs of the automakers and the new fuel efficiency standards that have been issued,” said ICM’s Steve Vander Griend.

Yielding Higher Octane Performance

The fuel performance study revealed that E30 yielded higher octane performance compared to Iso-Octane, which is the reference fuel for determining the 100 octane scale

Current testing standards of the American Society for Testing and Materials (ASTM) would show much less octane potential for E30.

“These real-world results show that ethanol blends have the potential to offer much more octane value than previously estimated by methods prescribed by the ASTM.

“This is very good news for automotive engineers who are looking to higher-octane fuel as they strive to meet higher fuel efficiency and performance standar

“Most importantly, consumers stand to gain the most from saving money at the pump,” continued Vander Griend.

Ethanol’s favorable performance can be particularly beneficial under high engine load conditions that often result in contributing to higher emissions from motor vehicle exhaust.

The potential benefits include lower emissions and better fuel economy which equates to lower C02 per mile with utilizing mid-level ethanol blends.

ICM looks forward to supporting future fuel test studies that will continue to prove the performance and value that ethanol delivers.

In addition, through continued collaboration with various stakeholders, the biofuels industry stands ready to assist in achieving aggressive fuel efficiency standards that will reduce our dependence on foreign oil and promote cleaner cars that won’t pollute our air or constrain consumers’ wallets at the fuel pump.

For more information, call 316-977-6508.

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Flex Fuel Vehicles Key to Global Oil Crunch

Source: Growth Energy

Consider this: 95 percent of transportation fuel in the United States comes from oil that is controlled by the handful of countries that make up OPEC – many of which are run by dictators and strongmen who don’t support America’s values of freedom and democracy.

Being at OPEC’s mercy means it controls what we pay at the gas pump today and in the future. In fact, energy analysts are already projecting that If Iran follows through with its threat to blockade the Strait of Hormuz, the price of oil could rise 50 percent or more within days.

This connection explains why every president since Nixon – including Obama – has called for a reduction in foreign oil in an attempt to shield our economy and our national security from its influence.

There is no reason to believe that the goal will be any different in 2012—especially since it’s an election year—but, the result can be different if this Congress makes one important decision: invest in Flex Fuel vehicles.

According to an article published in Downstream Daily, an oil and gas daily,the production of Flex Fuel vehicles is the viable solution to America’s global oil crunch and energy dependence.

The author states, “[T]he auto industry can make flex fuel cars a reality. Once multi-fuel vehicles become available, the normal market forces of demand, supply and price would help the alternative fuels gain acceptance and reduce dependence on oil.”

Today, there are nine million Flex Fuel vehicles (FFVs) out of a total of 249 million vehicles on the road. Automakers have committed to producing more FFVs, but in order to make that investment effective, we need a simultaneous expansion of Flex Fuel pumps to deliver the mid and high level blends of ethanol to run in those vehicles.

Making Flex Fuel vehicles as commonplace as conventional cars will give retailers the confidence they need to invest in Flex Fuel pumps.

As the author concludes, “Once the car user has the confidence that he will be able to refill any fuel, he will naturally choose the most economic alternative. This will help contain petroleum usage and its prices and create a strong market pull for the alternative fuels.”

Energy security is national security. We can no longer afford to allow a handful of countries exert unlimited influence on our wallets or our safety. Increasing the number of Flex Fuel vehicles on the road will increase access to alternative fuels, put more money back into consumers’ pockets and create a more secure energy future for our children and grandchildren.

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Informational meeting about ethanol pumps to be held in Sioux Falls

Source: Sioux Falls Business Journal

Meetings are being held around South Dakota to advise petroleum businesses about the state’s ethanol blender pump grant program.

Sioux Falls is among the meeting sites. The local meeting will begin at 9.m. Jan. 12 at the South Dakota Technology Business Center, 2329 N. Career Ave.

The meetings are being hosted by the Governor’s Office of Economic Development in conjunction with the South Dakota Ethanol Producers, American Coalition for Ethanol, Growth Energy, South Dakota Petroleum and Propane Marketers Association, and the South Dakota Association of Cooperatives.

The grant program was created to help station owners defray the cost of installing ethanol blender pumps, which help offer consumers a variety of fuel choices, including non-ethanol fuels and various ethanol blends.

A total of $950,000 is available in this year’s program. The program awards up to $25,000 for the first blender pump and up to $10,000 for each additional pump.

Rick Serie, director of market development for the American Coalition for Ethanol, said the organization is happy to be working with the state on the effort.

“We are pleased that the state continues to lead the way in creating programs to encourage marketers to install more blender pumps,” he said.

A similar program was a big success last year, Serie said.

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Blender Pump Informational Meeting Set For Thursday

Source: Yankton Daily Press & Dakotan

Those interested in South Dakota’s new blender pump incentives can learn more at a Yankton meeting this week.

The Governor’s Office of Economic Development (GOED) and several industry associations are hosting meetings across the state to field questions about the Ethanol Infrastructure Incentive Grant Program. The officials will explain how the grants work, who’s eligible and other program specifics.

The Yankton meeting will be held at 1 p.m. Thursday at the Old Human Services Center campus in the South Training Center (old chapel), 132 Mickelson Drive.

The meetings around the state are open to any station owner seeking more information, said GOED spokeswoman Brooke Bohnenkamp.

“The meetings are geared toward stations that are looking to add blender pumps,” she said. “(That includes) stations without any blender pumps or stations that already have blender pumps but want to install additional pumps (that) qualify for the program.”

Thursday’s meeting sponsors include the GOED, South Dakota Ethanol Producers, the American Coalition for Ethanol, Growth Energy, South Dakota Petroleum and Propane Marketers Association, and the South Dakota Association of Cooperatives.

Several dozen stations in South Dakota have blender pumps, including three in Yankton, Bohnenkamp said. The Yankton stations include Double T Truck Stop on U.S. Highway 81, Cork ‘N Bottle at 1500 Broadway and Prairie Pumper at 909 Broadway.

The state provided assistance with the installation at the three stations, Bohnenkamp said. In June 2010, the GOED held a news conference at the Double T Truck Stop shortly after their pump was installed.

Last month, Gov. Dennis Daugaard announced the GOED is making $950,000 in grants available to help pay for the installation of ethanol blender pumps and associated infrastructure at retail gas stations in South Dakota.

Grant awards up to $25,000 are available for installation of a station’s first blender pump. Grant awards up to $10,000 are available for installation of each additional pump.

The new fuel dispensers, also known as flex pumps, will help promote value-added agriculture in South Dakota, Daugaard said.

“Ethanol production is a very effective way to increase the value of our agriculture base,” the governor said. “By making more ethanol blends available, we are improving producer opportunities, creating jobs, and stabilizing our domestic fuel supplies.”

Funding for the grant program was made possible by a partnership between South Dakota Ethanol Producers and the State of South Dakota.

During the 2011 legislative session, South Dakota Ethanol Producers agreed to a reduction in Ethanol Producer Payments while temporarily allocating a portion of their remaining Ethanol Producer Payments to the blender-pump grant program and a portion to the Revolving Economic Development Initiative (REDI) Fund.

South Dakota produces about one billion gallons of ethanol a year, and blender pumps allow motorists to select their desired blends of gasoline and ethanol, according to the GOED.

South Dakota was the first state in the nation to allow ethanol blender pumps, the GOED said. More than 100 pumps currently help support South Dakota’s 15 ethanol plants and the nearly 900 South Dakotans directly employed by the industry.

“Ethanol use is a very simple and real way South Dakotans can decrease their dependence on foreign oil and promote a homegrown product,” said Dana Siefkes-Lewis, president of South Dakota Ethanol Producers Association.

“Through this grant program, we hope more gas stations make ethanol blends available to South Dakota consumers, in turn supporting South Dakota’s economy and those employed by the ethanol industry.”

The majority of the grants will be awarded on a first-come, first-served basis; the final 20 percent will be awarded competitively.

“This program is a great way to assist marketers in installing the additional equipment required to sell high blends of ethanol above E-10 for use in flex-fuel vehicles,” said Dawna Leitzke of South Dakota Petroleum and Propane Marketers Association.

The Ethanol Infrastructure Incentive Program was designed to alleviate retailers across the state from costs associated with the installation of blender pumps.

The State of South Dakota has allocated $3.5 million over the next five years to get the program on its feet.

Funds can only be used for dispenser, associated hardware and other tank fueling infrastructure. Funds will be provided to grantees on a reimbursement basis with proper supporting documentation.

Projects must be completed and reimbursement must be requested within six months of the grant approval date. A written extension may be granted by the GOED.

GOED will begin accepting grant applications today (Monday). For more information, visit http://www.sdreadytowork.com/blenderpumps.aspx.

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The road for E85 fuel just got rougher

Source: Minnesota Star Tribune

The high-ethanol fuel known as E85 has gained a small foothold in Minnesota in recent years, thanks in part to a subsidized price advantage and the presence of major producers and blenders in the state.

Now, the federal tax credit that boosted the industry is gone, raising questions about the fuel's future.

Without the 38-cent-per-gallon subsidy that went away Jan. 1, E85 prices are moving up. It's still cheaper than gasoline, but the shrinking difference may not be enough to compensate drivers who get fewer miles per gallon because of the fuel's lower energy content.

"E85 is going to have a tough road ahead of it," said Dustin Haaland, director of renewable fuels for CHS Inc., an Inver Grove Heights-based farmer-owned cooperative that is a major blender and retailer of ethanol under the Cenex brand.

The post-subsidy era also brings tough choices for owners of flexible-fuel vehicles, including the state of Minnesota, which has more than 3,000 vehicles capable of burning E85, and in 2010 used 963,000 gallons of it.

They must decide whether to support a fuel that is 85 percent home-grown ethanol even it it's no longer competitively priced. Minnesota is the nation's fourth-largest ethanol producer, and leads the nation with 364 retailers selling E85.

"We have our eyes open, and we are watching this," said Tim Morse, director of Minnesota's fleet. "We think it is too early to make any kind of decision right now."

Morse said he wants to see if the full 38 cents of lost E85 subsidy gets added to the state's fuel price. That could boost the state's annual E85 bill by $366,000.

Last week in the Twin Cities, E85 was 16 cents to 40 cents lower than regular gasoline, which also rose in price. That's as little as a 5 percent price difference. E85's price advantage has sometimes been more than four times better and averaged 17 percent last year, according to the state Commerce Department.

At Lerum Auto, the only E85 dealer in Richfield, owner Dean Lerum had another 1,000 gallons of E85 delivered on Wednesday -- at the new, unsubsidized price.

"I am going to let the market decide," said Lerum, for whom E85 once represented 25 percent of fuel sales, but now accounts for 5 to 7 percent. "If it drops a whole lot more, I will get rid of it."

E85's many challenges

E85, whose sales in Minnesota peaked in 2008, has always faced challenges. Americans own more than 8 million flex-fuel vehicles capable of burning E85 or gasoline. Yet only about 2 percent of gas stations sell E85. The fuel also decreases a vehicle's miles per gallon by 15 to 25 percent compared with gasoline, experts say.

"It's a product slightly ahead of its time," Jeff Broin, the CEO of ethanol producer Poet, said last month. "While it is a fantastic fuel, is extremely environmentally friendly and it's obviously using a lot of Midwest corn, the engines in the cars today don't burn E85 very efficiently."

Broin and others in the ethanol industry say E30, which is a 30 percent ethanol blend, probably is a better deal for flex-fuel vehicles, at least for now. But that blend is available at few stations, usually from special pumps that allow drivers to select a blend.

Many retailers are reluctant to make the investment in such pumps because motor fuel is a low-margin business. Cenex stores, with their ties to a farmer-owned cooperative, have been a leader in offering a range of ethanol fuels, with 374 locations offering E85 and other blends.

"The blender pump is the future," said Haaland of CHS.

Outlook for pricing

Regular gasoline, which is 10 percent ethanol, also lost 4.5 cents per gallon in subsidy when the Volumetric Ethanol Excise Tax Credit expired Dec. 31. It's a smaller amount because the 45-cent tax credit was for each gallon of ethanol mixed by refiners and blenders. They are still required to blend ethanol, though not necessarily at 85 percent.

Some experts suspect the full effect of the post-subsidy E85 price changes hasn't yet reached retail pumps. Around the state, E85 prices have always varied widely, and can be influenced by such things as the proximity to an ethanol refinery, said Kelly Marczak, director of Clean Air Choice, a program of the American Lung Association.

"We hope that while our pocketbooks are important, people will also consider it is a homegrown fuel,'' said Marczak, whose organization says E85 reduces ozone and other air pollutants.

In the shifting energy markets, E85 potentially could regain its price advantage. Its margin vs. gasoline is greatest when oil prices are high and corn prices are low. But corn prices have been high, and oil prices may be headed higher.

"Gas prices have moved higher recently because of what is going on with the Iranian threat of closing the Strait of Hormuz," said Brian Milne, energy editor for Telvent DTN, a news and data service for the energy industry. "Also, in looking at the U.S. economy there are signs it is on a growth trajectory and that has boosted oil prices."

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Coalition for E85 Fights Back Against Rising Prices

Source: DomesticFuel.com

As prices for 85 percent ethanol fuel are rising in the wake of the expiration of the Volumetric Ethanol Excise Tax Credit (VEETC) on January 1, the Coalition for E85 is increasing its effort to have American-made 85-percent ethanol recognized as an alternative fuel along with natural gas, propane, and hydrogen alternatives.

The expiration of the VEETC resulted in an immediate a 38-cent increase on every gallon of clean E85, which the coalition notes reduces the incentive for Americans to buy domestically produced fuels, and endangers the investments of millions of Flex Fuel auto owners, E85 retailers, producers, equipment manufacturers, and other supporters.

“Despite the tax credit’s expiration, we are continuing to work to protect the investments made by millions of Flex Fuel drivers, and thousands of retailers and producers who want to keep money spent on fuel right here in our country,” said Matt Horton, CEO of Propel Fuels, a leading member of the Coalition for E85. “Oil companies didn’t need the tax credit to keep blending ethanol into gasoline, but America’s alternative fuel retailers need the tax credit to keep E85 affordable. Without Congress’ continued support, America will become more dependent on foreign oil.”

The Coalition for E85 is urging supporters to reach out to their representatives and show support for E85. A tool kit including sample letters to Congress, pump top posters for retailers, and social media links can be found on the coalition’s website.

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Top Two Iowa Winners Support Renewable Fuels

Source: DomesticFuel.com

The two Republican presidential candidates who topped the Iowa Caucus in a virtual dead heat Tuesday night are both considered to be supporters of renewable fuels.

According to the Iowans Fueled with Pride Iowa Caucus Voters Guide, Mitt Romney and Rick Santorum were two of four candidates who expressed support for major renewable energy issues, including the Renewable Fuels Standard. The guide shows the winners also support a fair and equitable energy tax policy; the attempt to ban E15; and consumer fueling choice through programs to increase the number flexible fuel vehicles (FFVs)and blender pumps in the nation. The other two candidates who scored well in all those categories were Newt Gingrich and President Obama.

Ron Paul, Michelle Bachman and Rick Perry all were opposed to the RFS and increasing FFVs and blender pumps, while only Rick Perry was against E15 and a “fair and equitable energy tax policy” that would “create a level playing field for energy taxes” by revising the permanent tax benefits enjoyed by the petroleum industry.

The voter guide was mailed to approximately 10,000 Iowa households with residents who are directly involved in Iowa ethanol refineries and was also promoted to all of Iowa’s 250,000 agricultural households via email, the Internet and social media. An electronic version of the guide can be viewed at: www.IowansFueledwithPride.com.

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End of ethanol subsidy will raise the price of gas

Source: USA Today

It's because Congress declined to renew the 30-year-old federal subsidy for ethanol, letting it expire Sunday.

Ethanol, denatured grain alcohol used as a proven smog-cutting ingredient, currently makes up 10% of most gasoline-based motor fuel for general use, so-called E-10. In a few areas, E-85 fuel, 85% ethanol, also is available. E-85 can be burned only by vehicles equipped for "flex fuel."

How much the end of the subsidy could add to gas prices, and how soon, is yet to be seen. Ethanol blenders got a 45-cents-a-gallon tax credit, which amounts to 4.5 cents for the amount blended into each gallon of E-10 fuel.

It's hard to calculate the immediate impact. Oil prices and ethanol stocks are in flux. And unknown is the impact of another move by Congress: dropping the 54-cents-per-gallon tariff on ethanol imports. Brazil is a leading global producer of ethanol made mostly from sugar cane.

In the U.S., ethanol primarily is made from corn. That has made the ethanol subsidy controversial because of allegations that it raised food prices. The estimated $6 billion annual cost of the subsidy also has added to the federal deficit.

The end of the subsidy, however, has caused barely a ripple among ethanol backers or corn producers. Corn prices remain high because of healthy exports, especially to China. E-10 is now standard, and more demand for ethanol is guaranteed by an escalating federal alternative fuel mandate requiring more use of it.

"Things have changed. The marketplace has changed," says Matt Hartwig of the Renewable Fuels Association, which represents ethanol makers. "Today, ethanol is 10% of the nation's gas supply."

Trading in benchmark crude opens this week at $98.83 a barrel. Crude prices averaged $95.09 in New York trading last year, up from $79.64 in 2010 and $62.11 in 2009, the Associated Press reports. The Energy Department expects oil prices in 2012 to average $98 a barrel.

Gas prices averaged $3.28 for a gallon of regular (E-10) nationwide Monday, according to AAA, up from $3.07 a year ago. E-85 ethanol averaged $2.95. But because cars can't squeeze as much mileage out of every gallon of ethanol, the price when adjusted to equal the mileage of a gallon of regular was $3.88.

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Are Flex Fuel Vehicles a Viable Answer to Global Oil Crunch?

Source: Downstream Today

A World Bank spokesman recently warned that a global oil crunch could happen as early as 2015 with prices climbing over $150 a barrel from the current $95 - 97 level. From the first global oil shock of 1973 when the oil prices doubled from $25 to over $50 per barrel, there have been several periods of sudden rise in oil prices following some price softening, though the trend of oil prices have always been upward. The past cases of price hikes were by cut-backs in oil production by the OPEC ( Oil Producing and Exporting Countries) as a geo-political tactic. As soon as the OPEC restored production levels, the oil prices fell back.

Flex fuel vehicle

The new price spike, however, is predicated on the world demand for oil exceeding supply. The global oil production has stagnated at around 89 million bpd (barrels per day) for the past three years. New oil capacity coming on stream barely equals declining output from operating oil wells. The demand from China alone is projected to grow from the present 9 million bpd to 15 million bpd by 2015. There is similar high growth expected from other emerging economies.

The transportation industry is the major user of oil. Some 70 million cars and over 50 million motorbikes and other petrol using vehicles are being made at present. This number is set to increase rapidly as the large populations in the emerging economies lift themselves up from low income levels. Oil is also needed for a number of other end uses including production of petrochemicals, plastics and fertilizers. If the transportation industry could begin to substitute oil with other fuels, it would reduce pressure on oil demand and price increase.

Threats of global warming

In addition to the emerging demand-supply imbalance, the continued use of oil for transportation complicates the problem of containing carbon emissions. Over 40 percent of global carbon emission is from oil usage and another 40 percent from coal based power generation. From large central carbon emission points like power plants or process industries, there could be the option of carbon capture and sequestration as a means of containment until clean energy solutions including renewables become widely adopted. It is impossible to capture emissions from the millions of transport vehicles. New technologies like electric vehicles are still some way from being fully acceptable.

The rise of flex fuel vehicles

The internal combustion engines used in transportation vehicles work not only with gasoline (petrol and diesel), but also with other fuels such as compressed natural gas (CNG), methane and ethanol. After the first oil shock of 1973, ethanol made from farm produce began to be blended with gasoline. It was initially blended to the extent of 10 to 15 percent but now there is the E85 blend which is 85 percent ethanol and 15 percent gasoline. CNG vehicles have become accepted for city transportation vehicles even in the emerging economies. Methane gas from municipal landfills and other waste processing facilities is being used in Europe for both transportation and home heating applications. In the future, coal bed methane could emerge as a plentiful energy source.

These alternative energy sources have not become popular with personal transport vehicles like cars, mainly because the filling stations for these fuels have not become as commonplace as gasoline filling stations. Car makers have not introduced alternative fuel cars because buyers are concerned with convenient fuel availability. Alternative fuel outlets have not grown in numbers since there is very little demand. Some of the same issues are impacting acceptance of electric vehicles.

The need, therefore, is for car makers to develop vehicles that can carry and use multiple fuels at the same time. A hybrid electric vehicle is one example of a multi-fuel vehicle, which uses two different but complementary drive technologies. Auto makers have demonstrated that multi-fuel vehicles are possible and practical in various sizes of passenger cars. Two of the auto majors had displayed concept cars in auto shows of 2006 but have not, thereafter, taken the idea forward to commercial production. In 2011, a racing car has been designed with a multi-fuel engine. These trends, summarized below, indicate the that the auto industry can make flex fuel cars a reality. Once multi-fuel vehicles become available, the normal market forces of demand, supply and price would help the alternative fuels gain acceptance and reduce dependence on oil.

Current trends

1. Multipla Multi-Eco: Fiat to run on gasoline, methane and bio-ethanol

Multipla Multi-Eco

Fiat displayed this concept car at the 2006 Paris Auto Show. This car had three separate fuel tanks, one for regular gasoline, the second for methane gas and the third for E85. The driver can choose between these different fuels by a switch selection and the electronic fuel monitors would adjust combustion characteristics of the engine to accept these fuels.

The Multipla Multi Eco concept was developed from Fiat's very popular entry level car named the Panda Panda. It was first offered for dual fuel operation with gasoline and methane gas. In the concept car, the E85 was added with the view that the car model could be used in different parts of the world with the fuel available there.

2. Trans Star Racing Dagger GT

TranStar Racing Dagger GT

This handcrafted 2011 Racing Dagger GT is capable of 2000 hp power and 2000 lb-ft of torque and can accelerate 0-60 mph is 1.5 seconds. This car can reach a top speed of 300 mph and expects to break land speed records in the coming racing car season.

This racing car is fitted with a multifuel engine made by Nelson Racing , that can run on gasoline, methanol, hydrogen or ethanol delivered from two separate tanks, one for liquid fuels and the other for gaseous fuels. This engine helps demonstrate that alternative fuels do not impede car performance.

3. Volvo Multifuel Concept Car

Volvo Multi-Fuel concept car

This mid-size family sedan of 2006 vintage from Volvo featured the use of 5 different fuels, two of them liquids and three gaseous fuels. The liquid fuels were gasoline and E85 and the gaseous fuels were natural gas, biomethane and hythane which is a mixture of 90 percent methane with 10 percent hydrogen. Two separate tanks had been fitted in the car. A 29 liter tank for liquid fuels and a 98 liter tank for the gaseous fuels. The car user can fill any of these fuels based on cost and availability.

Advantages of MultiFuel Vehicles

Multi-fuel vehicles would help level the playing field betweengasoline vehicles which benefit from 100+ years of motoring infrastructure and the alternative fuels which are struggling to find acceptance. Once the car user has the confidence that he will be able to refill any fuel, he will naturally choose the most economic alternative. This will help contain petroleum usage and its prices and create a strong market pull for the alternative fuels.

What needs to be improved?

Besides the infrastructure issues of alternative fuels availability, there is the need to build operating experience with alternative fuels. In the past, there have been some issues with increased erosion of engine components with ethanol and also wax formation in ethanol blended fuels at low temperatures. Such technology issues can get solved only if multi-fuel vehicles come into the mainstream with the volumes that can attract attention and funding.

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