Propel Fuels is opening more pumps with 85 percent ethanol for California flex fuel vehicle (FFV) drivers.

The company held a grand opening event in Oakland this week to formally launch a network of renewable fuel stations for the Bay Area, which will include more than 20 stations across the Bay, with up to half opening by the end of this year. The event also announced a $10.9 million grant from the U.S. Department of Energy (DOE) and California Energy Commission (CEC) to build and operate 75 retail renewable fuel stations throughout California over the next two years.

At the grand opening, California Energy Commissioner Anthony Eggert (pictured) said the station development project, known as the Low Carbon Fuel Infrastructure Investment Initiative (LCFI3), will help the state with the development and deployment of low carbon fuels and clean vehicles. “The Energy Commission is proud to team up with Propel Fuels and the partner agencies to bring next generation low carbon biofuels, including cellulosic ethanol, to the nearly half a million flex fuel vehicle customers in California, while creating hundreds of green jobs, and continuing to lead the way in our nation’s battle against climate change,” said Eggert.

Propel will work with community partners CALSTART and East Bay Clean Cities to educate consumers and fleets on the wide spread benefits of low carbon, alternative fuels available today and those next generation fuels coming in the future.

“Presently in California more than one million diesel and Flex Fuel passenger cars are capable of running on renewable fuels, but there hasn’t been a sufficient number of renewable fuel stations,” said John Boesel, President and CEO of CALSTART. “This program takes a major step forward by creating 75 new renewable stations which will give consumers the choice to say ‘no’ to oil dependence, ‘yes’ to the American economy and ‘yes’ to the environment.”

Propel has already begun construction of the station locations in major markets across California, with the network of 75 stations funded by this project to be complete by the end of 2011. Currently there are three locations open in the Bay Area (Fremont, Oakland, South San Jose) with additional sites planned for Downtown San Jose, North San Jose, Berkeley, Palo Alto, Redwood City, Livermore, and Concord in the coming months.

Thanks to Jamie Quick with Propel and Paul Wikoff for the photos from the event.