New E85 stations open, study discusses role of E85 in meeting RFS

By Renewable Fuels Association | September 25, 2013

Twenty-four new stations began offering E85 in the last week, bringing the total number of stations offering this blend up to 139 this year. E85 is available to all flex-fuel vehicles.

The new E85 stations come on the heels of a study released last week by Iowa State University’s Center for Agricultural and Rural Development. The new study by Professor Bruce Babcock found that "... it is feasible to meet 2014 and 2015 biofuel mandates with expanded E85 consumption given existing numbers of flex vehicles and stations that sell E85." Other key conclusions include:

"...enough flex vehicles are located close enough to stations that sell E85 that significant volumes of E85 would be sold if it were appropriately priced."

"Current high RIN prices create a large incentive for oil companies to increase consumption of E85 because expansion in E85 consumption will decrease RIN prices."

"...pricing E85 low enough to generate fuel cost savings has the potential to quickly increase ethanol consumption, perhaps by three billion gallons over the next year or two."

“E85 is in high demand and growing as retailers begin to see the advantages of offering the high level blend at their stations,” said Robert White, director of market development at the Renewable Fuels Association. “The price savings can be seen across the country as more and more drivers demand additional fuel options and cheaper prices at the pump.”

According to the average E85 price in Minnesota is $2.64/gallon compared to the $3.42/gallon average gas price today. In fact, E85 has been reported as low as $2.17/gallon in St. Paul, MN.

The 24 new E85 stations include:

Maumelle, Ark.
Rising Fawn, Ga.
Plainfield, Ind.
Plainfield, Ind.
Terre Haute, Ind.
Hebron, Ky.
Morehead, Ky.
Winchester, Ky.
Alexandria, Ky.
Cheboygan, Mich.
Pinconning, Mich.
Lancaster, Ohio
Cinncinnati, Ohio
Springfield, Ohio
South Vienna, Ohio
Dayton, Ohio
Kettering, Ohio
West Carrolton, Ohio
Miamisburg, Ohio
Bellefontaine, Ohio
Tulsa, Okla.
Oconomowoc, Wis.
Greenfield, Wis.
Huntington, W.Va.