To: J_F_Shepard who wrote (3711 ) 10/30/2006 3:11:21 PM From: one_less Respond to of 10087 "It's a 'writing on the wall' kind of thing," said Troy Hill, vice president and general manager of Hill Petroleum. "A lot of states are approving mandates for renewable fuels, and GM and Ford are coming out with so many flex-fuel vehicles." ========================================= Corn o'plenty Energy office to sow $500,000 in federal funds to pump more ethanol, more revenue into state By Steve Raabe Denver Post Staff Writer Article Last Updated:08/01/2006 03:13:02 AM MDT Corn pours from a truck at the Sterling Ethanol plant. The plant... (Post / Jerry Cleveland)«12»The Colorado Office of Energy Management and Conservation plans to invest $500,000 it receives in federal funds for dozens of new ethanol fuel pumps. E85, a fuel composed of 85 percent corn- based ethanol and 15 percent gasoline, is renewable, cleaner-burning than gasoline and a boon to the state's corn growers. The energy office is developing plans to add 30 to 40 new locations to the existing 10 Colorado service stations that have E85 pumps, said Ed Lewis, senior deputy director of the office. Where to build them? Simple. Put them where the state's 300,000 ethanol-ready vehicles are. Colorado "flex fuel" vehicles are owned, the state agency is working to identify high-volume sites and to talk to service-station owners who would consider adding the fuel over the next 18 months. The first new outlet, scheduled to come on line next month, is an Arvada Sinclair station owned by Hill Petroleum. "It's a 'writing on the wall' kind of thing," said Troy Hill, vice president and general manager of Hill Petroleum. "A lot of states are approving mandates for renewable fuels, and GM and Ford are coming out with so many flex-fuel vehicles." Flex-fuel engines can take ethanol, gasoline or any combination of the two. There are about 6 million of the vehicles on America's roads, and the nation's Big Three auto manufacturers - Ford, General Motors and DaimlerChrysler - said they plan to double the annual production of flex-fuel vehicles to 2 million by 2010. The state energy office will fund a majority of the costs to add or convert a storage tank and pump to E85, estimated at $8,000 to $60,000. Station owners also will qualify for state and federal tax credits that will cover a portion of the cost. The owners will supply an undesignated amount of their own equity. "I'm not doing this just on a whim," said Hill, who also plans to install a pump for biodiesel, a fuel made from vegetable oils. "I'm definitely counting on a return on my investment." But consumer demand for E85 remains a question without a precise answer. Many drivers - nobody knows exactly how many - don't know that their vehicles may take ethanol. "There are still a lot of people driving flex-fuel vehicles and they don't know it. They pass E85 fueling stations, and they don't know they can take it," said Mark Yancey, vice president of BBI International, a Salida-based ethanol consulting firm. The Colorado Office of Energy Management and Conservation plans to start a public- awareness campaign with help from auto manufacturers, dealers and oil companies. Once aware, motorists will find varying prices for E85. Some Colorado stations, with subsidies from the corn industry, are charging as little as $1.99 for the fuel. Others are charging prices equivalent to gasoline or a few cents higher. Fuel economy declines by about 10 percent with E85 use. Ethanol experts say that as more manufacturing plants come on line, prices are expected to level off at about 10 to 20 cents a gallon less than gasoline.