August 13, 2010
Rock Hill gas station owner sees future in E85 fuel
Published in The Herald
Manoj Nampoothiry hopes the oldest business adage - location, location, location - pays off for his latest investment.
He spent about $8,000 to retrofit three diesel pumps and their tanks at a Rock Hill Exxon station off Interstate 77 to sell E85, a blend of ethanol and gasoline. His supplier, Protec of Boca Raton, Fla., invested $10,000 in the project.
Nampoothiry hopes another business adage - have the lowest prices - pays off too. He started selling E85 Thursday for $2.29, 20 cents cheaper than his price for regular gasoline.
He knows it is a gamble. E85 only can be used in "flex-fuel" cars, vehicles that can run on either E85 or regular gasoline. Automobile makers are increasing flex-fuel car sales each year. Fifty percent of the cars made by General Motors and Chrysler in 2011 are projected to include flexible fuel vehicles.
Protec estimates there are about 2,000 flex-fuel cars now within a 10-radius of the station. Nampoothiry hopes soon-to-be-installed signs on the interstate will attract traveling customers.
The Exxon station, at 1055 S. Anderson Road, is one of at least three E85 stations in the region. The Fairway Station at 1010 Carolina Place in Fort Mill - also off I-77 - began selling E85 in 2006. Brownie's Sales, 3864 York St. in Sharon, started selling it in 2008. There are about 80 stations selling E85 statewide, according to industry estimates.
To meet federal air quality guidelines, gasoline sold in the area is 10 percent ethanol and 90 percent gasoline. All vehicles can run on this blend.
E85 gets its name because it is 85 percent ethanol and 15 percent gasoline. It has its pros and cons. It produces less energy per gallon that gasoline and you get fewer miles per gallon. The price is less and it has a higher octane rating, about 95. E85 burns cleaner and more completely due to its higher oxygen content than gasoline.
When you consider all these factors, it is still 2 cents to 3 cents cheaper than gasoline and better for the environment, Nampoothiry said.
The fuel ...
