Wisconsin Ethanol Producers Want To Expand Market

Industry seeking help from federal government in raising ethanol blend limit and providing incentives to retailers to install blender pumps.

MONROE, WI – Wisconsin ethanol producers are urging the federal government to assist their industry by providing incentives to retailers to install blender pumps and raising the blend limit to 15 percent, Channel3000.com reports.

The Badger State Ethanol plant in Monroe offers pumps with ethanol blends of 85, 25, and 10 percent, though these pumps are not widely available.

NACS adds that all but two dispensers in the nation are not lawfully permitted to sell any fuels containing more than 10 percent ethanol because they are not listed by Underwriters Laboratories as compatible with those fuels. Failure to use listed equipment violates regulations of the Occupational Safety and Health Administration, tank insurance policies and bank loan covenants, and exposes the retailer to gross negligence liability for using non-compatible equipment. NACS is supporting legislation that will change the manner in which equipment can be evaluated and legally considered compatible with renewable fuels, but until this is accomplished, retailers are advised to not violate compatibility laws governing their motor fuels storage and dispensing equipment.

"We need to continue to expand the market for ethanol and right now as an industry, not just here in Wisconsin, but as a country, we now have pretty much totally saturated the 10 percent market," said Gary Kramer, president of Badger State Ethanol.

Many of the state's ethanol producers want the federal government to raise the ethanol blend limit to 15 percent, which they maintain would be a lifesaver for the industry.

"It's the difference between us treading water and being very profitable going into the future, and if we're treading water we're not creating any new jobs," Kramer said.

However, petroleum retailers aren't convinced that more ethanol would find a receptive consumer audience. Ed Francoise oversees 13 Wisconsin gas stations, and he said demand for ethanol is modest.

"E85 is something that was very hot when gas was at $4 a gallon, but now that prices are back in the range of $2.70 you've seen a fall of the use of E85, and I think it's going to continue until gas gets above $3," Francois said.

Additionally, Francois worries that ethanol supplies might not be able to accommodate an increase from 10 to 15 percent.

"When you take the cap and raise it by 50 percent, will we have enough ethanol to provide it to gasoline?" asked Francois. "And in the case of a very bad corn year, a year with drought, low product, we then have a mandate that says it will go to fuel."

source: nacsonline