It’s been a pretty good couple of weeks for E85 ethanol, as the green fuel made its way into 24 more stations across the country and got another study with supportive results. The Renewable Fuels Association (RFA) says there are now 139 stations in the Nation offering E85. Plus the group touted the results of Iowa State University’s Bruce Babcock study that found “… 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.”
RFA is glad to see the demand high and the price low for E85, averaging just $2.64/gallon and running as low as $2.17/gallon in Minnesota, compared to $3.42 for a gallon of regular gasoline.
“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.”