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Kansas corn growers, EPIC, serve up new ethanol blendsBy Larry Dreiling
With the launch of a new blender pump kiosk at TJ Convenience Store at Colwich, Kan., the headquarters city of ICM, Inc., officials of the three concerns announced that it hopes to place as many as 100 blender pumps at fuel stations across Kansas within the next year. The effort would follow a plan comparable to that of a similar expansion scheme in Iowa. "Consumers are looking for relief at the pump, and blender pumps will allow gas stations to sell more blends of ethanol enriched fuel to consumers driving flex-fuel vehicles (FFVs)," said Robert While, EPIC deputy director. "This program will provide support and incentives to fuel station retailers who want the opportunity to offer blender pumps, and raise awareness among consumers." New blends move product The plan will help fuel station retailers obtain funding and the equipment needed to sell higher blends of ethanol, which range from E-20 (20 percent ethanol and 80 percent unleaded gasoline) to E-50 (50 percent ethanol and 50 percent unleaded gasoline) and can only be used in FFVs. The Colwich blender pumps not only sell regular unleaded gasoline and E-10 (10 percent ethanol and 90 percent unleaded gasoline), but E-20, E-30 and E-85 blends as well. Currently, three blender pumps are open in the state, thanks to a pilot program adopted by the Kansas Department of Agriculture that made Kansas one of the first states in the nation to allow ethanol blender pumps. Besides the Colwich location, other blender pump locations have been opened at Blue Rapids, Garden City and Lawrence. In the two weeks prior to the ceremonies, when the installation of the blender pumps occurred, sales at TJ Convenience Store have doubled, according to Dave Vander Griend, ICM, Inc. president and CEO. "We updated the signs, the pumps and the kiosk since they were all worn out," Vander Griend said. "This station needed a facelift. We were happy to help with it. It looks really good." Special promotion The station sports specially designed signage incorporating the EPIC ethanol "e" logo inside the word "flex" while the kiosk has "e" along with the phrase "power of choice" on two of the four sides. A promotion featuring $1.85 per gallon E-85 was held before the announcement was made to give FFV drivers an opportunity to fill up with the mid-level blends of ethanol at the new pumps. Sen. Sam Brownback (R-KS) was also on hand to join Vander Griend in a ribbon-cutting ceremony. "Today is a great day for Kansas as we help the ethanol industry expand higher blends of ethanol through blender pumps while also giving consumers a break at the pump and allowing them to use a product produced right here in Kansas," Bob Timmons, Kansas Corn Commission chairman, said during a short dedication ceremony. "This program will help strengthen our economy by encouraging blender pump infrastructure development, and take us one step closer to weakening our dependence on foreign oil," he said. Returning tax breaks Following the ceremonies, Vander Griend held an informal news conference, declaring that its programs, like adding blender pumps, is what those involved in moving ethanol forward are trying to do to demonstrate what the 60-cent per gallon tax incentive to blenders can do for consumers. "One of the problems we have is that our customers and our competitors happen to be the same people. With each blend, we are giving that incentive back to the consumer and save the consumer some money," Vander Griend said. The infrastructure to make ethanol an even larger part of the fuel landscape isn't the problem so much as the ability for lenders to do their part and assist in funding new projects, Vander Griend said. "We have a lot of plants ready to go. They have 50 percent equity and still can't get the debt. High corn prices didn't help," he said. "Plants are profitable. They aren't as profitable as they used to be a few years ago, but then, that wasn't right either. You've got a pendulum and it swings so far. As it continues to swing, it slows down a little bit and it will come to a neutral point at some stage." Truth and fiction The infrastructure of moving product also carries what Vander Griend called "Truth and a little bit of fiction." He said: "Our pipelines are already full of oil and petroleum products. So the benefit of our fuel coming out from the Midwest has helped with the pipeline overloading that we're having already. If ethanol were all in Texas, they wouldn't be able to ship it anyway. Blending ethanol is alleviating some of that pressure. "Besides, if in the Midwest we would (fuel all our cars) with E-20 or E-30, all of the sudden, a whole lot of ethanol wouldn't have to be shipped out and a whole lot of gasoline wouldn't have to be shipped in. You'd save freight both ways, since we have ethanol production here and gasoline production for the most part on the east, west and the south where the people are." Noting that while it's not recommended, Vander Griend said he has been using E-20 in his 1990 Oldsmobile for years without problems. He said he'd like to see domestic car makers relax their rules to allow gasoline engines to run on blends such as E-20 or E-30. More flex-fuel cars He also wants to see more foreign car makers adapt their vehicles to run on E-85. "We need the message to go up to Capitol Hill that all vehicles sold in this country need to be flex-fuel cars," Vander Griend said. "It costs about $100 extra to build a flex-fuel car. That's $100 the imports don't spend. That can mean a big difference in a person's car buying decision. At the end of the day, domestic manufacturers are at a disadvantage. "What we have to do is educate consumers into thinking we aren't addicted to foreign oil, our cars are. We have to ask: How do we give cars a choice? How do we promote the flex-fuel vehicles that we need to have, to really get these domestic fuels into the marketplace? "The sooner we can get more flex-fuel cars on the road, the sooner we can give consumers the choice of what they want to burn in them and the sooner we can give the consumer a price advantage at the fuel pump." Like the blender pumps now at four sites in Kansas, Vander Griend said it's important that government change the law to give the consumer a choice of expanded flex-fuel cars. "We've got an opportunity for government to take a stand," he said, "and say we are in favor of domestically produced renewable fuels as part of our overall strategy. It's not the only answer. I like to say it's a sectional bridge away from oil. "Part of the strategy includes nuclear, coal gasification, wind and solar. There are all kinds of things we can be doing. Ethanol is one of them." Larry Dreiling can be reached by phone at 785-628-1117 or by e-mail at ldreiling@aol.com. 9/1/08 Date: 8/27/08
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