ND mulls ethanol promotion

Ethanol supporters in North Dakota have several ideas to boost demand in the state.

FARGO, N.D. (AP)--Some ethanol boosters say their product would be more attractive if drivers are allowed to select the percentage of the corn-based fuel that's blended in with regular gasoline.

That suggestion came Nov. 27 during a meeting with government and industry leaders who are worried that ethanol produced in North Dakota would be shipped out of state unless more residents start using more of it.

"How do we continue to put more and more ethanol in every gallon of gasoline? That's the question," said Roger Johnson, North Dakota agriculture commissioner.

Ethanol is offered in blends of 10 percent and 85 percent. The number of gas stations in North Dakota selling the 85 percent blend, or E-85, topped out at about 30 and is falling, said Kent Satrang, who manages Cenex stations in Fargo-Moorhead.

"If you build it they will come," Satrang said. "But it's got to be at the right price."

Many drivers have been scared away by lower fuel efficiency and reports that cars with E-85 start poorly in the winter, said Owen Jones, a Britton, S.D., ethanol producer. He said a blender pump would allow consumers to use a more economical 20 percent or 30 percent blend and work their way up to E-85.

"If you're looking at E-85 sales, you really need to look hard at a blender pump," Jones said.

Federal law prohibits the promotion and production of blends other than E-10 or E-85, said Jocie Iszler, executive director of the North Dakota Corn Growers.

"We think the blender pump concept is a common sense approach," Iszler said. "It's up to the federal government to test and validate what we already know is true."

Sen. Byron Dorgan, who hosted the Nov. 27 meeting, said the state soon will be producing about 300 million gallons of ethanol a year. There are 15,000 flexible-fuel vehicles in North Dakota, but many of those owners aren't using E-85.

"We've got a lot of plants being built for a demand that doesn't exist with a (10 percent ethanol) blend," Dorgan said.

The federal government recently passed a bill requiring refiners to produce and use at least 7.5 billion gallons of ethanol in their gasoline every year by 2012. The state should have a standard, Dorgan said.

"I think it's a tough sell in North Dakota, especially with the current makeup of the Legislature," said state Sen. Joel Heitkamp, D-Hankinson. "I can make a promise that the bill will be introduced again."

Mike Williams, a Fargo city commissioner, handed out results of a University of North Dakota survey showing that 96 percent of 600 residents interviewed favor the promotion of renewable energy as a way of reducing dependence on foreign oil. He would like to see a state requirement for ethanol use.

"Whenever you go out and testify at the Legislature, people always say, 'Oh, they're going to mandate something,'" Williams said. "I'm on the city commission and we make laws every other day. A mandate is just another word for a law."

Keith McDougall, manager for a Fargo automobile dealership, said he hasn't seen a demand for flexible-fuel cars.

"We don't have customers on a day-to-day basis walking into our showroom floor asking for E-85 vehicles," he said.

Corn production in North Dakota has doubled since 1999, Iszler said. The state is projected to set a record this year with about 164 million bushels of corn, "even with adverse conditions," she said.

"Right now North Dakota corn growers are doing their part by doing what they do best, and that is growing corn," Iszler said.

Dorgan said there also needs to be incentives that allow corn producers to own shares in ethanol plants.

Date: 12/21/06

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