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January 18, 2013

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by Holly Jessen (Ethanol Producer Magazine) Developing a retail relationship with area fuel stations is a potential perk for ethanol plants, retailers and consumers.

In some areas of the U.S., drivers filling up with ethanol blends have one more reason to proudly choose the fuel. It’s locally sourced, providing consumers with the unique opportunity to purchase ethanol produced by their neighbors—area corn farmers and the employees of a local ethanol plant.

…Although the details vary from plant to plant, it generally involves installation of on-site blending infrastructure, allowing an ethanol plant to sell E85 directly to area retailers. E15 and other ethanol blends represent another area of opportunity. For example, Zarco 66, the first retailer to offer E15 in the nation, purchases ethanol directly from ethanol plants located within 100 miles of his seven gas stations that sell E15. In this case, the retailer does his own blending.

…Carbon Green started supplying retailers with E85 in July 2011. The company spent about $75,000 to install the equipment needed to do onsite blending at any ratio. With marketing assistance from Noble Mansfield Renewable Energy, Carbon Green sells about 1 million gallons of E85 a year, directly to fuel stations in close proximity to the plant.

… Retailers like it because they can typically purchase the fuel at a discount compared to other sources, although the price depends on the spread between ethanol and gas.

…Educating retailers about the benefits of higher percentage ethanol blends is also part of it, Jerke adds. CEVC is using its relationship with area retailers to promote E15 and the installation of flex-fuel or blender pumps. That means connecting them with the appropriate resources to answer their questions about new products and opportunities.

…Miller has learned that there are three keys to selling higher ethanol blends. The first is that the price needs to be predominantly displayed on the marquee sign, next to E10 or regular gas. “The customers driving by the stations, see that price difference, recognize it and that drives sales,” he says. “We’ve found that drives sales up, by up to five times.” READ MORE

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