55 gas stations in state to get ethanol pumps

A San Diego company has landed a $6.9 million federal grant to install ethanol pumps at 55 gas stations throughout California in an effort to get people to use the alternative fuel.

Pearson Fuels started with an alternative fuel station in City Heights and has expanded throughout the county and into the Inland Empire and Northern California, partnering with existing gasoline stations to sell ethanol.


“If you ever want to make a difference with this stuff, you have to integrate it where people are already getting fuel,” said Mike Lewis, a partner in Pearson Fuels.

The grant will allow his company to expand from the 13 stations where it sells ethanol or is building ethanol pumps.

Yesterday, Pearson Fuels in City Heights was selling ethanol at $2.49 a gallon and regular unleaded gasoline at $2.94, although a one-to-one comparison isn't entirely fair because ethanol lowers mileage slightly.

The company announced the grant yesterday in partnership with AE Biofuels, a Cupertino company that plans to produce ethanol from grasses or agricultural waste rather than food stock such as corn.

The ethanol is mixed with 15 percent gasoline and called E-85. It can be used to power vehicles bearing a “flex fuel” logo.

The California Energy Commission estimates that about 340,000 vehicles can use the fuel. Lewis believes the number is higher, maybe as high as 500,000.

Many people don't know they have a flex-fuel vehicle, he said.

But in any case, there are many more such cars and trucks than the 26 or so stations in the state that sell ethanol to the public can supply.

The grant will pay for permits and installation of the new pumps over the next 3½ years.

Ethanol proponents say it helps reduce pollution and greenhouse gas emissions because it reduces the use of fossil fuels.

Critics say that the production of ethanol, which involves huge stills, uses so much energy that it is not as earth-friendly as it seems.

The Southern California Association of Governments helped the companies land the federal grant.

Source:3.signonsandiego