EPA Approves E-15 Ethanol Blend, 20 Plants Get Nod to Produce Fuel

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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, the Environmental Protection Agency approved the sale of E-15 blends of gasoline that will allow ethanol producers to register as suppliers of the new increased-ethanol blend. The ethanol industry praised the move; however, the EPA is still finalizing the labeling requirements, which are expected to be released later this summer.

More than likely, the move will barely move the needle in terms of increased output from producers, but it gives the struggling biofuels industry a boost and hopefully increase profit margins so plants can stay afloat.

With the blend wall increased, an increase in the distribution system and additional blender pumps will have to increase as well for the fuel to find its way into U.S. fuel tanks. To enable widespread E-15 distribution, the Obama administration has set a goal to enable fueling station owners install more than 10,000 blender pumps over the next five years.

Currently, the majority of blender pumps are located in ethanol-producing states such as Minnesota, Iowa, Nebraska, Kansas, Wisconsin, and the Dakotas. Estimates show there are some 2,400 E-15 pumps and 305 blender pumps. That's a small spill, considering, that there are more than 1.6 million gas pumps in the United States.

Last week's announcement also included a list of 20 approved fuel ethanol producers to blend E-15. Hopes are that this will help in taking steps toward blends of up to 20% and 25% blends--a move that might take the sting out of Congress ending a 30-year tax subsidy on corn-based ethanol.

Click on image at right for a table showing the ethanol producers approved to blend E-15.

Still, corn-based ethanol will peak at about 15 billion gallons annually in the future, and the government needs to approve grants, loans and loan guarantees to spur commercial scale of not-from-food, next generation biofuels production.

Industrial Info's databases provide a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 150 operational plants and 86 plants in development. Our North American Ethanol Database covers 215 operational plants and 103 plants in various phases of development. Our North American Wood Fuel Pellet Database includes 70 operational plants producing more than 25,000 tons annually and 36 projects in progress.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.