September 24, 2010
E-15 fuel expectations rising
Published in Lincoln Journal Star
OMAHA -- Putting two blender pumps on line Friday at a Shelby service station is the largely symbolic result of a partnership between the United Farmers Cooperative and an ethanol consortium that includes fuel producer Green Plains of Omaha.
But Green Plains President Todd Becker is hoping for something much more tangible and far-reaching from the Environmental Protection Agency in the weeks ahead.
Becker, whose company owns ethanol plants at Ord, Central City and four more out of state, expects Nebraska and the nation to move from 10 percent ethanol blends to 15 percent very soon for all vehicles manufactured in 2001 or later.
That would mean E-15 pumps in Lincoln and elsewhere instead of E-10.
"Hopefully, there's some good news coming," Becker said Thursday as he presided at an ethanol roundtable at his Omaha headquarters.
Based on a recent face-to-face meeting with EPA Administrator Lisa Jackson, Growth Energy's Tom Buis is equally optimistic.
Buis expects a thumbs up from the Department of Energy to the EPA on testing of vehicles made since 2007 by the end of the month and a similar result on E-15 use by the 2001-2006 grouping by the end of November.
"After that," Buis said during the roundtable, "we're probably looking at 60 days beyond that point before we get fuel out in the marketplace."
Pending developments carry big significance for Nebraska's ethanol industry, a $5 billion infrastructure, because growing numbers of plants nationally are producing more grain-based fuel at the 10-percent level than the fuel market can accommodate.
EPA action also is eagerly awaited because of all the doubts swirling around a decision by federal lawmakers on extending a 45-cent production tax credit for ethanol blends that is scheduled to expire Dec. 31.
Growth Energy has been advocating a new approach directing much of the money spent on the production credit to building more flex-fuel vehicles capable of using 85 percent ethanol and installing more blender pumps beyond Shelby and the few other places they're already in place.
"Longer term," Buis said, "what we need is market access and even market access beyond E-15."
Nebraska Congressman Jeff Fortenberry is backing a similar strategy that he said would save more than $5 billion per year.
Buis and Becker said the current E-10 limit conflicts with a federal mandate that calls for more than 36 billion gallons of renewable fuel to be in use by highway vehicles by 2022.
"There has to be some reconciliation," Becker said.
Steve Sorum of the Nebraska Ethanol Board said he would be in Shelby on Friday to see flex-fuel history in the making...
