Midwest Slow to Embrace E85

Even in Iowa, with 169,000 flexible-fuel vehicles, motorists purchased less than 60 gallons of E85 per car or truck during 2010.

April 26, 2011

WASHINGTON - As ethanol producers continue lobbying Congress for incentives to stimulate sales of higher ethanol blends, slow sales of E85, even in the Midwest, demonstrate a lack of consumer interest, the Des Moines Register reports.

"Even in states where E85 pumps are concentrated, actual sales of E85 have been stagnant," said Shane Karr, a lobbyist for the auto industry.

According to the newspaper, E85 sales fluctuate according to gasoline and ethanol prices, with E85 sales increasing only when it is a far less expensive option.

"It's hard to get any consistency in E85 sales," said Rick Cummings, vice president of CHS Inc., which sells E85 through 290 Cenex dealers in the upper Midwest.

Consumer E85 purchasing data is significant as some legislators seek to require automakers to increase the production of "flexible-fuel" vehicles. Under a bill proposed by Senator Tom Harkin, 90 percent of all new cars and trucks would need to be ethanol-equipped by 2016.

But according to Karr, unless motorists "actually use biofuels in a significant quantity," mandating ethanol-equipped vehicles could cost consumers money and do little to reduce oil consumption.

Minnesota has the most E85 stations with 365, but sales of the fuel there dropped from 22.5 million gallons in 2008 to under 16 million gallons in 2009, as gasoline prices dropped below that of ethanol. Last year, sales of E85 in Minnesota rose to 16.6 million gallons as gas prices increased.

Iowa has not fared much better. It realized E85 sales of 7.7 million gallons in 2008, before falling to 5.9 million in 2009. As gas prices rose last year, E85 sales spiked to just over 10 million gallons. Considering the state??s 169,000 flexible-fuel vehicles (according to the Iowa Renewable Fuels Association), the 2010 total averages about 59 E85 gallons per car or truck.

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