Scenarios to Determine Approximate Cost for E15 Station Readiness

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September 12, 2013

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(Petroleum Equipment Institute (PEI)) (from a letter to US Department of Agriculture) … “You asked on August 13 if the Petroleum Equipment Institute (PEI) had any information regarding the average price for installing E15 storage equipment and blender pumps at retail stations. You provided several scenarios for which you wanted information.
The accompanying attachment describes the scenarios you provided and includes ballpark figures for
each scenario. These numbers represent the mean and median from a confidential survey of PEI
members from across the nation conducted August 22 through September 5, 2013, using your scenarios.
…
Scenario #5: Figure you are building a new station on virgin land. Estimate the additional cost (over and above what a “traditional” E10 system would cost) for putting in E15 at a new station. The E15 system would have two USTs: One UST would hold E85 and have equipment listed** as such. The other UST would hold E10. The pumps would be listed** blender pumps capable of blending E85 and E10 to produce E15. Compare that with a “traditional” E10 system that would have two tanks: One UST containing a premium grade E10 and the other UST containing a regular grade E10. The blender pump would be capable of blending a premium grade E10 with a regular grade E10 to produce a mid-grade E10. Please estimate the overall (labor and equipment) over and above costs for the E15 system described above, compared to the E10 system described above, assuming 2, 4, 6 and 10 dispensers.
2 dispensers: Average: $21,803 Median: $24,000
4 dispensers: Average: $43,606 Median: $40,000
6 dispensers: Average: $65,407 Median: $60,000
10 dispensers: Average: $100,476 Median: $100,000 READ MORE

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