Minnesota State Fleet E85 Use Up 79% in First Three Quarters 2008
21 October 2008
According to a new report from the Minnesota SmartFleet Committee, E85 use in the state fleet during the first three quarters of 2008 is 79% greater than during the same period in 2007. In the first nine months of 2008, 529,000 gallons of E85 were used to fuel the state’s roughly 1,700 flexible fuel vehicles. Last year at this point, only 295,000 gallons of the locally-produced, largely renewable fuel had been used.
E85 use now represents about 12% of total fuel purchases for the state fleet, according to Tim Morse, chair of the SmartFleet Committee and director of Fleet and Surplus Services, Minnesota Department of Administration.
There are an estimated 200,000 vehicles that can use E85 as well as gasoline on the road today in Minnesota. As with the state fleet, the Minnesota Department of Commerce has noted an increase in overall E85 sales throughout 2008, even as gasoline sales have declined for four consecutive months. Data posted on the Department of Commerce website shows reported E85 consumption of 6,186,385 gallons for the first six months of 2008, with 11,493,889 gallons estimated (not all stations report). For the full year 2007, MDOC reports an estimated E85 consumption of 21,394,620 gallons.
There are currently 344 stations offering E85 in the state.
While vehicles using E85 instead of gasoline get fewer miles per gallon, the price of the ethanol-based fuel in Minnesota is averaging from 40 to 60 cents less than regular unleaded, according to the American Lung Association of the Upper Midwest, which tracks E85 prices on its www.CleanAirChoice.org website.
Great! Minnesota moving the renewable fuels market forward.
Posted by: gr | 21 October 2008 at 04:53 PM
And for all those still harping on "Food v Fuel" here's the latest:
Food prices appear to be more related to oil prices than ethanol production
by Scott Anderson
The perennial food-versus-fuel debate is back on our collective plates, but this time it's a different story. The lead in this Reuters piece by Sam Nelson says it all:
CHICAGO, Oct 23 (Reuters) - Heavy demand for corn from ethanol makers was seen as a key driver of corn futures to record highs in June, but since then the sharp decline of corn along with other commodities shows that belief was mistaken.
Expect more more backpedaling in the weeks to come.
As the Reuters piece points out, the price of corn has fallen nearly by half since June, while the same amount of grain is going to produce ethanol:
Chicago Board of Trade corn futures set a record high $7.65 per bushel for a spot contract at the end of June. By the spot contract's price had been halved to $3.85 per bushel.
Not so coincidentally, the per barrel price of oil has fallen in half as well since June - from $147 a barrel to today's relatively cheap $74 price per barrel.
Was corn-based ethanol to blame from the run up in food prices? Reasonable minds may differ, but the consensus - if I can call it that - among economists and commodities watchers indicates indeed ethanol was a factor, but one of many factors and not just THE ONLY factor and almost certainly not the biggest factor.
Posted by: sulleny | 24 October 2008 at 04:01 PM