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Future for ethanol blends in Alabama and the United States . Michelle Kautz Market Development Manager. Use of ethanol today. Every vehicle in the nation can operate on up to 10% ethanol. Most small engines can operate on up to 10% ethanol.

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future for ethanol blends in alabama and the united states

Future for ethanol blends in Alabama and the United States

Michelle Kautz

Market Development Manager

slide3

Use of ethanol today

  • Every vehicle in the nation can operate on up to 10% ethanol.
  • Most small engines can operate on up to 10% ethanol.
  • Most marine engines can operate on up to 10% ethanol.
  • Total gasoline use in 2007 was approximately 143 billion gallons.
    • Limit of amount of ethanol that can be used today is 14.3 billion gallons.
    • Realistic national consumption is 13 billion gallons.
slide5

2022 use of ethanol

Increase of 20 billion gallons in 12 yrs

Current use of Ethanol

slide6

Limit of ethanol use in existing vehicle fleet at 10% blends is 14 billion gallons,

High level blends of ethanol MUST take on a greater role in the use of ethanol in general. This will be through the use of higher level blends in “legacy vehicles” or use of higher level blends in FFVs.

14 Billion gallons

slide7
Growth Energy is addressing these opportunities by advancing several policy issues:
  • Allow up to 15% ethanol in conventional vehicles
    • Waiver request submitted in March of 2009
    • Dec 2009
      • EPA indicated that initial results were “promising” and expect final decision in June of 2010
  • Massive production of Flexible Fuel Vehicles
    • Voluntary production preferred
    • Otherwise
      • Massive development of new liquid fuel dispensing systems, i.e. Blender Pumps
slide11

Flexible Fuel System

FFV equipment adds from $75 to $200 to each vehicle

No Additional cost to consumer

slide12

“There’s no reason the automotive industry can’t go to 100 percent E85 vehicles, and the world we love doesn’t have to change. It requires the least change in consumer behavior.”

General Motors Vice Chairman Bob Lutz

Source: Automotive News, January 21, 2008

slide13

Flexible Fuel Pumps for

Retailers

Separate hoses for flex fuel and standard fuel

Contrasting labels for standard and flex fuel. White – standard fuels

E10 ≈ 87% Unleaded/13% E85

E85

Contrasting labels for standard and flex fuel. Blue – flex fuels

Blends above E10 clearly labeled “for flex fuel vehicles only”

Unleaded

E85

number of ffvs in alabama
Number of FFVs in Alabama

156,280 in October 2009

slide23

Energy Policy Act of 2005

The alternative fuel required for use in the vehicle is not reasonably available (within a 5 mile or 15 minute drive of the vehicles' garaged location)

5,464 Federal FFVs waivered in the state of AL

slide24

What Growth Energy

can do for

YOU

slide25

Growth Energy can support efforts by:

  • Providing technical support
  • Providing materials
  • Political support-i.e. Feds actually using facility
  • Assisting with coordination
  • Limited financial support $2,500 per site for E85 & $5,000 per site for mid-level blends and E85 (blender pump installation)
slide26

Infrastructure Development Program:

  • First come, first serve
  • Can use additional Federal Income Tax credit
  • Must sell for 3 years
  • Must use pump imaging package
thank you for your time and support questions
Thank you for your time and support. Questions?

Michelle Kautz, Market Development Managermkautz@growthenergy.org

573-635-8445

Growth Energy Market Development