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Will you see E15 at the gas station?

The announcement by the Environmental Protection Agency that E15 can be used in 2007-and-newer cars will probably not mean the fuel will be available at your local gas station. Retailers say that is not enough potential cars to justify putting in additional tanks, pumps, etc. EPA is expected to expand the approval to 2001-and-newer cars later this year, that would encompass 55 percent of the nation’s vehicles, would that be enough for retailers to justify adding E15? Steve Loehr is Vice President of Operations for Kwik Trip; the company has 370 convenience stores in Wisconsin, Minnesota and Iowa which sold more than 80 million gallons of ethanol last year. He says if 2001-and-newer cars are approved, they will consider adding E15. “We still have the issue of a lot of cars older than 2001 out there and we still have the lingering uncertainty over liability concerns because the dispensing equipment would not be certified by Underwriters Lab or anyone else.” Any new equipment would be certified but the question would involve the viability of certifying existing equipment. “Until we can get some of those liability concerns addressed, I don’t think you’re going to see a lot of movement toward selling E15.”

Kwik Trip did install a few blender pumps but was not happy with their operation so they pulled them out. “Since then, I think the technology has improved so we are looking at the viability of blender pumps again.”

Another factor is the price competitiveness of ethanol right now. Loehr doesn’t think E15 would present any price advantage in the current market and if Congress doesn’t renew the blenders’ tax credit, it may end up at a price disadvantage. “We want to sell more ethanol but is has to be a win-win for everybody.”

AUDIO: Loehr comments on the viability of E15