The Pros and Cons of Ethanol-Free Gas

by Keith Reid (NACS Magazine) E0, or ethanol-free gasoline, can be a destination fuel for niche customers and operators of specialty equipment. -- ... Most gasoline in the United States is E10, or 10% ethanol. A mixture of 10% to 15% ethanol (E15) is becoming popular among both customers and fuel retailers. There’s also flex fuel E85, which is 51% to 83% ethanol. And with modern blending pumps, the sky’s the limit, with mixtures of 25% (E25) and 30% (E30) gaining traction.

However, there was a time before ethanol when gasoline contained either tetraethyl lead or, more recently, MTBE to boost octane. When health concerns related to both additives arose, the additives were largely phased out. Ethanol took their place first to boost octane, then to reduce carbon and to support agricultural markets.

Even so, ethanol-free E0 (often called “pure gas” or REC-90) is not extinct. It is uncommon and relatively expensive: usually 20 cents or up to $1 more per gallon than E10, depending upon fuel market dynamics and where and how it is sold to the public.

“In general, customers with boats and small engines, such as lawn mowers, are the ones who seek out ethanol-free gasoline,” said Chris Hartman, York, Pennsylvania-based Rutter’s vice president of fuels, advertising and development, among other responsibilities.

Rutter’s sells ethanol-free gasoline at approximately 27 of its 90 retail locations throughout Pennsylvania, Maryland and West Virginia. The company dispenses E0 from the dispenser and uses blender pumps to provide higher-ethanol blends.

As the Renewable Fuels Association (RFA) notes in a statement, “All mainstream manufacturers of power equipment and snowmobiles permit the use of gasoline blended with up to 10% ethanol in their products.”

Husqvarna, a manufacturer of outdoor power equipment, offers the following statement in a how-to guide on its website: “While E10 fuels are approved for small engine equipment usage, it is not recommended, especially in handheld products.”

“Landscaping businesses have become a key buyer of ethanol-free gas from us over the years,” Whatley said. “Most often, we’re placing tanks on their property and delivering directly to their headquarters, and we also have several that fill up regularly with us at our stations that offer [fill-ups of mowers and gas cans at the pump]. For larger landscaping companies, having peace of mind that their equipment is safe and will stand the test of time is worth the premium price they pay for E0.”

“They’re both the old-style, three-bay garage convenience stores that still do some full-service fueling for people,” Whatley said. It’s a niche market for these customers, and they’d never buy a tanker load. It’s usually 3,000 or 4,000 gallons at a time.

Missing the Boat?

As with lawn equipment, marine engine manufacturers have increasingly approved E10. As noted on RFA’s website all major marine manufacturers allow E10 gasoline for use in their products.

Another company that markets ethanol-free fuel (among its more than 70 fuel blends) is San Antonio-based VP Racing Fuels, which supports a global network of more than 2,000 dealers. The ethanol-free fuel is provided in bulk to its branded marinas and distributed to its branded convenience retail sites as “cage fuels” in 5-gallon pails in outside cages, similar to how propane canisters are sold. The company also sells premixed ethanol-free 2-cycle fuels in its network and to big-box retailers.

While not a mainstream market, classic-car owners can be found virtually anywhere, and these customers tend to have a strong emotional connection to their vehicles and will pay to fuel them accordingly.

One related area is the sale of high-octane (over 100 RON) racing fuel, which includes ethanol-free options.

The price per 5-gallon pail can be as much as $200. The company also distributes a range of performance additives.

However, while complete bans on sales of ethanol-free are not usually the case, a variety of regulatory and market issues can make supply availability hit or miss. A handful of states mandate E10, but there are usually exceptions for the aforementioned specialty uses. READ MORE