With the federal EPA’s recent approval of the first applications for E15 registration, the next question becomes–how quickly will fuel retailers move to offer the blend of 15 percent ethanol and 85 percent regular gasoline to consumers?
Growth Energy CEO Tom Buis says it may take some time, but eventually the free market will work.
“It’s like with anything—there will be some early adopters—and the retail industry is a very competitive industry,” Buis says. “So if the station across the street is offering fuel to consumers 5 to 15 cents a gallon cheaper, you know where the customers are going to go.”
Before they can offer E15, retailers must submit a “misfueling mitigation plan” to demonstrate how they will prevent “inadvertent fueling” of the new blend. E15 usage is restricted to model year vehicles 2001 and newer, and some retailers are concerned about the potential for misfueling liability.
But Buis points out that the number of older vehicles–those still in use—is declining every year and now constitutes less than 30 percent of all vehicles on the road—another reason why he thinks retailers will eventually warm up to E15.
“Every time someone buys a new car—and there are about 15 million vehicles sold per year—that number goes up,” he says. “So it’s well above 70 percent of the vehicles than can accept the fuel—they’re approved for it—and the fuel consumption (percentage) is even higher.
“So, yeah, we think they will adopt it.”
Buis says he expects E15 will begin showing up at some fuel pumps in the Midwest by this summer.
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