Lower price helps alternative fuel catch on with local consumers

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BY SUSAN ERLER
serler@nwitimes.com
219.548.4349 | Wednesday, June 18, 2008 | (22 comment(s))

VALPARAISO | Attracted by the $2.99 a gallon price, Jason Bradley pumped the E85 blend of ethanol and gasoline into his Chevrolet Suburban at a Family Express station Tuesday.

"It's just cheaper right now," said Bradley, who'd converted to the biofuel only in the past few weeks, when the low price outweighed any loss of fuel efficiency attributed to E85.

"If it's 50 cents a gallon less, it's time to use it," Bradley said

Made up of 85 percent ethanol and 15 percent petroleum, the blend is catching on with motorists, said Philip Lampert, executive director of the National Ethanol Vehicle Coalition, which promotes the alternative fuel and lists sites where it's sold across the nation.

The coalition recommends E85 be priced at least 20 percent less than regular unleaded to make up for a loss in fuel economy, Lampert said.

"It has less energy in it," than petroleum, Lampert said. "But if it's priced at 20 percent lower, most motorists will gain some value."

Family Express President and CEO Gus Olympidis said he dropped the price of E85 to $2.99 a gallon at his northern Indiana stations not only because ethanol "is cheaper right now than gasoline," but because U.S. grown corn goes into the blend.

"We make it here," Olympidis said.

The volume of E85 sales at the Family Express chain has tripled since he dropped the price to $2.99 a gallon earlier this month, Olympidis said.

Competing chain Gas City dropped E85 prices at several of its Northwest Indiana locations to about 60 cents below the going rate for regular unleaded gasoline in order to stay competitive, Gas City district manager JoEllen Jostef said.

Sales at those stations are up by about 50 gallons a day, Jostef said.

What's unknown is how long U.S. ethanol producers will be able to hold the line on the cost of the corn-based additive, which also is blended at a 10 percent rate into most regular unleaded gasoline.

After flooding across the Midwest this month, farmers and agriculture experts faced the possibility that thousands of acres of corn could be destroyed.

The floods sent corn prices soaring past $7 a bushel, up from about $4 a year ago, which could force ethanol producers to spend nearly as much for corn as they're getting for the finished product.

The 75 percent increase will play into decisions about future contracts for local ethanol producer Iroquois Bio-Energy, Chief Operating Officer and Assistant Vice President Keith Gibson said.

"We may not produce some volumes if the pricing doesn't justify the cost of the corn going into the products," Gibson said.

-- The Associated Press contributed to this report.

More online
The National Ethanol Vehicle Coalition lists sites where ethanol is sold across the nation: www.e85refueling.com

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The truth about E in your car wrote on Jun 19, 2008 1:28 PM:

" There are news stories out there now where people who don't have E85 "FlexFuel" vehicles are using E85 and having no problems... of course the people pushing E85 in the industry are saying you can't without risking long term vehicle damage, but if you have an older clunker anyway it wouldn't hurt to do some reasearch on the Internet to see if any other people have had good results. "

Brian wrote on Jun 18, 2008 4:31 PM:

" To person who wont give their name....I was not talking about Clinton, He is NOT the entire DNC , nor does he represent my views. Vote republican,NEVER. Personally, i would like to see more then two parties,but i doubt even in MY lifetime i will see that. "

Ed Rolla wrote on Jun 18, 2008 4:27 PM:

" Look up the word "boondoggle". E85 fits the definition perfectly. "

D wrote on Jun 18, 2008 3:35 PM:

" When the E85 was 50 cents less, the loss in mileage did not justify the switch. Now that in some places the difference is $1.10, it does, and so that's what we're buying!

I know eventually the price will rise due to demand, but for now, it's easing the pain. "

To Fred wrote on Jun 18, 2008 1:07 PM:

" You cannot use E85 in any car. It has to be set up to run on E85. Check your owner's manual or sticker on or near gas cap. "

mmm koolaide wrote on Jun 18, 2008 1:03 PM:

" Brian and Bob: IF there is a problem with speculators, the problem was started with the CLINTON admin. His Goldman and Sachs cronies talked Clinton into changing the oil trading rules, allowing GS and individuals to trade oil futures with a 5% downpayment. Previously, trading was restricted to oil users / refiners with a 50% downpayment (margin) Clinton and democrats block drilling, tar sands, shale oil and refinery expansion. Clinton and democrats push ethanol subsidies. So, clearly we see, that the cost of oil and food falls directly on the democrats and CLINTON policies. "

re bob wrote on Jun 18, 2008 11:59 AM:

" Wrong! E85 uses the corn kernels not just the stalk. I know because I work in the industry. It seem you post was just another failed attempt at Bush bashing and had nothing to do with E85. Also when farmers plant fuel corn instead of food corn in the fields then yes you do have food shortage, which drives up prices. FYI we only import about 13 to 18% of our oil from the Mid-East. If Clinton was so great then why didn’t he do anything with alternative fuel when he was in office (remember he had Mr. global warming himself aka Al Gore as VP too!) hmmmm? "

nb wrote on Jun 18, 2008 10:20 AM:

" All I know is that when I fill up with gas containing ethanol, my mpg goes down about 4-5 miles per gallon. Track it on the car computer. And typically, it's the same price or just a penny lower than the other gas stations around. I try to avoid it when I can. Hydrogen is the future. "

Wet Hen wrote on Jun 18, 2008 10:13 AM:

" to Bob: Right now we do not make ethanol from the stalks, although it can be done. It is subsidized by the feds, It is a local industry, because it can only be transported by trucks, not by pipe line; too corrosive "

to bob wrote on Jun 18, 2008 10:02 AM:

" You are so wrong! It is not just the stalks it is mostly the corn that is used. I know because I work in the industry but I see your comment was more about Bush bashing then about E85! Yes it does affect the food supply because farmers grow fuel corn instead of food corn no BS. If Clinton was so good then why didn't he do anything about alternitive fuel when he was in office. BTW we only import between 13-18% of oil from the Mid-East! "

bob wrote on Jun 18, 2008 9:46 AM:

" first of all, ethanonl only uses the stalk of the corn, not the corn itself. All the stuff about food being high becuase of ethanol is BS. Secondly, it is so easy to convert a car to run on the E85 that a 3 year old can do it.thirdly, I'd rather buy E85 and keep the money IN THIS COUNTY instead of sending it to Bushe's freinds in Saudi Arabia. AND SURE, IM GOING TO VOTE REPUBLICAN AFTER 8 YEARS OF FAILED BUSH ADMINISTRATION POLICY. I'd die to have things as good as they were when Bill was pres. "

Check your car wrote on Jun 18, 2008 9:28 AM:

" No Fred,

It's not safe to put E85 in any car. It's only ok if your car is a flexfuel vehicle, most of those are newer models of only certain makes. Check your car manual to see if your is compatible. A lot of flexfuel vehicles will have it marked inside the gas lid & some others actually have it on the back of the vehicle itself. At over $1 cheaper than gas is in my area, I have been using E85 & will continue to do so until it goes up. "

bob wrote on Jun 18, 2008 8:48 AM:

" I got E85 in Reynolds, IN, on Saturday at $2.85. My mileage dropped about 15%, but at 30% less, it was worth it. The technology needs to improve the efficency of the fuel but that will come in time. Now, there's only one station in Valpo, at 2 and Silhavy Road, that sells it and over 10 stations within 10-15 miles of Valpo. Looks like Valpo is still behind the curve when it comes to progress. "

The Hammer wrote on Jun 18, 2008 8:45 AM:

" You must have a "Flex Fuel" vehicle to run e85. We were subsidizing corn long before e85 hit the scene. The cars in Brazil run on e85 only. If we engineered cars here to run solely on e85 they would be nearly as efficient as regular gas powered. Brazil has invested a lot in e85 plants and make it from sugar cane. They can’t sell it in the U.S yet, but when they do the price should drop. "

brazil wrote on Jun 18, 2008 8:42 AM:

" Brazil doesn't use corn, they use sugar cane. "

mmm koolaide wrote on Jun 18, 2008 8:28 AM:

" Hey Brian: Your demorat congress and senators are the big push behind pumping food into the gas tank. Ethanol causes more pollution, drives up the price of food around the world (this may cause wars and insurection), inflates the federal budget, increases the cost of fuel transportation to the pump, increases the cost of a new car, and gives some people a false sense of energy independance. The real answer to our energy needs is to drill off the coast where China, Cuba, Brazil and others are drilling. That way, we don't have to buy OUR oil from China. "

fred wrote on Jun 18, 2008 7:55 AM:

" So it's safe to put e85 in any car? "

think wrote on Jun 18, 2008 7:38 AM:

" If there is such a shortage of corn, why are we shipping it overseas? Republicans are all about greed - selling everything to the highest bidder without thought or care about what the impacts will be. "

It Works wrote on Jun 18, 2008 7:24 AM:

" But it works so well for Brazil! Why does it work for Brazil and not the USA? "

Brian wrote on Jun 18, 2008 7:12 AM:

" Yes Vote repuplican. Vote for more of business the same. If ethanol is a scam, what exactly is with the high Crude prices from speculators????? Business as usual. "

Ethanol Bad Idea wrote on Jun 18, 2008 6:49 AM:

" The production of ethanol is reason we are paying more for corn, beef, and other food and has created rampant inflation in the economy. The production of ehtanol can't be done profitably without government subsidies, which means we are paying a hidden tax. And the emissions from ethanol are bad for the environment. Savvy investors want nothing to do with ethanol. It's a waste of taxpayer's money and is yet another example of what happens when government tries to get involved in the operations of a business - taxpayers have more money taken out of their paychecks.
Let's look to nuclear energy, solar energy, drill more domestic oil, shale, and other sources where private investors can make a profit. Then we won't need government help and the prices will go down while the goods will be delivered in the most efficient manner possible. "

Wise up People wrote on Jun 18, 2008 2:55 AM:

" ETHANOL IS A SCAM!!!!!
DRILL

DRILL

DRILL

VOTE REPUBLICAN. "

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