The Dept. of Energy (DOE) announced several grants to advance the installation of E85 and blender pumps.Growth Energy, through our Market Development program, will be receiving $200,000 to install blender pumps in the Norfork-Virginia Beach area of Virginia, and in the Seattle-Bremerton area of Washington.These areas were targeted as they both have large concentrations of FFVs owned by the Federal government with very limited fueling capability.Federal law requires the use of alternative fuels in the federal fleets when retailers offer such fuels within either a 5 mile or 15 minute drive to such sites.We'll locate these new stations to maximize the ability of the federal fleets to use the sites and also for the general public.

In addition to the $200,000 awarded Growth Energy, our partners were awarded an additional $800,000.DMC Green, a member of our Market Development Advisory Committee, was awarded $400,000 to install E85 pumps in central California.The Missouri Corn Growers Association, another member of our advisory committee, was awarded $200,000 to install blender pumps in Missouri, and the Michigan Clean Cities Partnership, which includes our close partner, the Michigan Corn Growers Association, was awarded $200,000 for blender pumps in Michigan.

The Growth Energy Market Development program will work with each of these grant recipients to undertake every effort to ensure that blenderpumps are installed where permitted and that applicable logos, identifiers, and other materials are used consistently.

Missouri Corn Receives Federal Grant to Establish Ethanol Corridors

With the goal of providing drivers with more choices at the pump, the Missouri Corn Merchandising Council (MCMC) has been awarded a $200,000 grant from the U.S. Department of Energy (DOE) to expand the number of ethanol stations along major in the Show-Me State.

On Wednesday, U.S. Energy Secretary Steven Chu awarded eight grants to five entities nationwide, investing $1.6 million in fueling infrastructure for ethanol blends. Through the Missouri Ethanol Blends Infrastructure Project (MoEBIP), 16 blender pumps (pumps that dispense ethanol blends ranging from 10 to 85 percent, as well as regular gasoline) are to be installed across the state, with the potential to displace an estimated 10.1 to 15.1 million gallons of petroleum.

"There was stiff competition in the Expansion of Ethanol Infrastructure category of this DOE grant," said Gary Clark, MCMC senior director of market development."Missouri Corn is honored to have our proposal be one of a handful of entities selected nationwide.We look forward to leading the charge in growing Missouri's use of renewable fuels."

The blender pumps will be installed across five major fueling corridors in the state, focusing on regions with large numbers of Flex Fuel Vehicles (FFVs). FFVs are able to run on regular unleaded gasoline, E85 (blend of 85 percent ethanol, 15 percent gasoline) and any blends in between. With 115 of the state's 4,200 fueling stations currently offering E85, the project will expand fueling options for FFV drivers along portions of I-70, I-44, I-29, Hwy 40/61 and Hwy 63.

"This project is great for Missourians," said Clark. "Not only are we supporting a farmer-owned ethanol industry and solidifying an alternative fuel market, we will be providing more choices for consumers and helping reduce our dependence on foreign oil."

Additional investments will be made by the project's current partners. In addition to Missouri Corn, participating entities include St. Louis Regional Clean Cities, MFA Oil, Wallis Companies and Warrenton Oil Company.

"It is exciting to envision the new avenues for partnership this award brings," concludes Clark. "The DOE grant allows us to pull together the state's ethanol plants, fuel suppliers and retail outlets in one concerted effort with consumers winning in the end."

Submersible Turbine Pumps (STPs) Now UL Listed for E85 Compatibility

After the rigorous 16-week UL testing procedure in which the FE Petro STP was subjected to demanding exposure testing with aggressive fuel blends, the industry's leading STP line emerged with positive results to achieve the industry's first UL approval for STPs to be used in E85 applications.

"There is a certain peace of mind that comes with a third-party approval like the UL listing. Our customers know that our equipment has been put through some very demanding testing in order to achieve that listing. They can be confident when they put our STP in the ground to pump ethanol blends that it will perform to the highest degree," said Jay Walsh, Vice President of Business Development for Franklin Fueling Systems.

To achieve the UL listing, Franklin Fueling Systems replaced several of the materials that make up the components used in the STP with those that are resistant to corrosion in applications containing ethanol content up to 85 percent. These enhancements include replacing soft or yellow metals with stainless steel as well as replacing the materials used to fabricate gaskets with other fuel resistant materials.

"This UL listing marks a significant achievement for the FE Petro brand as well as the industry itself," said Walsh. "We feel that this type of future fuel compatibility will only increase across the petroleum equipment industry moving forward. With the EPA showing its support of higher ethanol blends and the current administration's commitment to strengthening the ethanol fuel infrastructure and vehicle fleet, we feel it is only a matter of time before the demand for products that are UL listed for high concentrations of ethanol blend will begin to significantly increase."

Franklin Fueling Systems will begin shipping all AG (alcohol gas) compatible STPs with the UL marking and upgrades beginning January 22, 2010. For a complete listing of the UL listed STPs, contact your local Franklin Fueling Systems approved FE Petro distributor.

Editor's Note: This is an important step in development of a "holistic" E85 fueling system. While we expect the release of a dispenser in the 2nd Quarter of 2010, submersible pumps have been another critical piece of equipment which has been missing in our efforts to establish certified E85 dispensing systems.

DMC Green Launches First Alternative Fuel Dealers' Group

DMC Green, Inc. (a member of the GE Market Development Advisory Committee) has organized their first alternative/renewable fuel dealers' group to support the growing number of DMC Green fuel program dealers now in operation in California. Under the DMC Green brand, these dealers currently offer ethanol, biodiesel and electric car charging in addition to their major oil company fuel brands.

Launched at an inaugural kick-off meeting on January 6, 2010 in Sacramento, the DMC Green Dealers' Group brought together DMC Green's research support teams to support existing gas station dealer-owners that have purchased the turn-key DMC Green alternative/ renewable fuel installation package. The open forum meetings are scheduled to take place 4 times per year.

As a result of the dealers' early success with the DMC Green fuel program in 2009, many dealers say they are now looking for new opportunities where they can integrate the DMC program into other locations. "DMC has been a very supportive partner and their program has exceeded my expectations", says Robert Takhar, owner of Robert's ARCO in Woodland, CA. "Vehicle traffic has definitely increased which increases our fuel sales as well as sales in our AM/PM convenience store."

The DMC Green Dealer's Group meetings provide a working discussion round-table where dealers can stay abreast of the rapid growth and regulatory changes in the green fuel market and where dealers can share experiences with their peers. "More importantly, these meetings help us find ways to increase dealer profitability through our research programs," says Director, Market Development for DMC Green Andy McCargar. Andy also holds and advisory position on the Growth Energy Market Development Committee.

Jasvir Rana, owner of Sunrise Shell in Rancho Cordova, CA, says he is pleased to be a part of the DMC Green Dealer network. "The DMC Green fuel sales have been incremental to our existing petroleum fuel sales. Less than 20% of our biodiesel sales were converted from our existing diesel customers. Not only has this provided new fuel sales overall, but the additional traffic has contributed to increased convenience store sales."

These leading-edge DMC Green fuel dealers will soon be joined by some thirty additional contracted DMC Green dealers that are now being permitted throughout the State of California.

Audit Finds Too Few Biofuel Pumps to Fill Tennessee State Vehicles

Tennessee state agencies missed the Jan. 1 goal of cutting gas and diesel use because of gaps in the supply of biofuels, according to recent state audit.

Legislation enacted in 2007 required all state agencies, universities and community colleges that have more than 10 cars to develop a plan to increase the use of alternative fuels and synthetic lubricants and switch to fuel-efficient or low-emission vehicles.

The recent audit by the Comptroller of the Treasury found that only the Tennessee Board of Regents' central office has met the goal. Other agencies, like the Department of Transportation and the Department of General Services, said they have had difficulties finding biofuels across the state.

Alan Jones, manager of the environmental policy office at TDOT, said there are still some big gaps between commercial biofuel pumps across the state, including much of West Tennessee and around Chattanooga.

According to TDOT, there are just 33 pumps across the state selling B20, a blend of 20 percent biodiesel and 80 percent petroleum diesel fuel. Another 27 pumps provide E85, a blend of up to 85 percent ethanol and 15 percent gasoline.

In West Tennessee there are just two locations that sell B20 and none that sell E85.

Jones said it's a difficult problem because gas station owners won't sell biofuels until there's a demand, but there won't be a demand until there are more vehicles on the road that can use biofuels.

About 9 million cars on the roads today are flexible fuel vehicles, meaning they can use E85 or regular petroleum fuel, he said.

"A lot of those vehicle owners continue to use 100 percent unleaded and in fact, surveys have shown that a lot of those vehicle owners don't even realize they can use E85," he said.

Toyota President Touts Liquid Fuel Demands Will Outnumber Supply

Toyota President Jim Lentz: "Within the next 10 to 20 years, we will not only reach peak oil, we will enter a period where demand for all liquid fuels will exceed supply. A century after the invention of the automobile, we must re-invent it with powertrains that significantly reduce or eliminate the use of conventional petroleum fuels."

Growth Energy would invite Toyota to produce additional vehicles as flexible fuel vehicles. The need for massive FFV production remains critical and would be best served by voluntary production of such vehicles. Senators Harkin and Lugar have introduced the "Choice Act" which will be considered as part a new energy bill. Among other things, the Choice Act requires the mandatory production of FFVs. To review a copy of the Choice Act, you may click here.

E85 Stations and FFVs Grow Slowly in 2009

In January 2001, there were only 50 E85 stations across the United States.Now, there are over 2,100 but the increase in stations hasn't been without a few hiccups.A rapid growth in stations occurred in many years, but despite continued increase in FFVs, the growth from 2009 â€“ 2010 was the slowest growth experienced in several years.

Contact our team for any technical questions you may have on installing a blender or E85 pump.Please contact our office at 1-877-485-8595 or email marketdevelopment@growthenergy.com for more information.

New and Renewed Growth Energy Market Development Members

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

Volkan Petroleum, Inc.
Aspinwall Cooperative Company (renewed for 2011)
Daniels Sentry Express
Luebbering Oil Company
MFA Oil Company
Propel Fuels
Speedy Q Markets
Star Fuels Centers, Inc.
Two Rivers Cooperative

Member Spotlight: Gulf Oil

Gulf Oil LP, a subsidiary of Cumberland Farmers Inc. and a previous member of the NEVC, has recently renewed its membership with Growth Energy Market Development.

Gulf Oil Corporation was established in 1901, along with an oil discovery in Spindletop, Texas. The Northeast distribution assets and brand license of Gulf Oil Corporation were acquired by Cumberland Farms in 1986.Today, Gulf Oil LP is a premier gasoline brand throughout the Northeast with approximately 2000 branded locations. Gulf Oil LP is a regional market leader in petroleum and alternative fuel distribution. Cumberland Farms, a privately-held company, began in 1939 as a two-cow dairy farm. Today it is a large convenience store operator with approximately 600 Company-operated and 400 dealer-operated stations spanning 11 states across the northeast and Florida.

There are a number of reasons why they chose to join Growth Energy Market Development says Laura Scott, the Vice President of Strategic Planning and Business Development for both Cumberland Farms and Gulf Oil LP, "For environmental, economic, and security driven, the world will need to develop alternatives to compliment or in some cases replace traditional fossil fuels. Gulf does not know what form of energy will prove to be optimal. Therefore, we believe a number of different technologies should be investigated and tried in the pursuit to find that new source. Biofuels are one option available to the market today. We believe we should do our part to make options available to the public. For this reason we have chosen to install E85 dispensing capability at a small number of our stations on a trial basis."

She went on, "The desire to make choices available to our customers, combined with state and federal support that limits our financial risk, convinced us to install E85 dispensing capability at nine of our stores is one of the foremost reasons why we installed E85 at our fueling facilities."

According to Scott, the most effective way to reach out to consumers is through the major auto manufacturers.

New E85 and Blender Pump Stations

As of this publication, there are 2,102 E85 stations. Three new E85 facilities have opened since our last newsletter.

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