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High gasoline prices spark brisk demand for flex-fuel cars

Flex-fuel vehicles are a hot item at auto dealerships, and -- as Minnesota State Mankato E85 researchers can attest -- the benefits go beyond financial savings for consumers.

2006-06-08
By Tim Krohn, Free Press Staff Writer [published in The Free Press, Mankato, MN, 6/7/2006]

Photo by John Cross
E85 fuel pumps, such as this one at the Freedom station in St. Peter, are increasingly showing up at gas stations across the state.
E85 fuel pumps, such as this one at the Freedom station in St. Peter, are increasingly showing up at gas stations across the state. There are now about 225 stations carrying the 85 percent ethanol fuel.

MANKATO — There's nothing like $3 gas to get people's attention.

"Customers are asking for flex-fuel vehicles. Even when they're looking for used vehicles," said Todd Snell of Snell Motors. The reason is simple: E85, fuel containing 85 percent ethanol, has been selling for about 45 cents per gallon less than gasoline.

But Tim Gerlach, of the American Lung Association and one of the nation's leading advocates of ethanol, said the benefits go far beyond savings at the pump.

"The harmful emissions from ethanol are less than gasoline, pretty much across the board. It's just much better environmentally," said Gerlach, director of outdoor air programs.

The Minnesota chapter of the Lung Association became the national lead agency on ethanol promotion when the U.S. Department of Energy picked Minnesota to be a test site for ethanol in 1998.

Since then, the state has required at least 10 percent ethanol in all fuel and in recent years, E85 has been promoted. Unlike the 10 percent blend, engines burning E85 need some minor modifications — the so-called "flex-fuel" vehicles.

Gerlach and Snell said GM has been the early leader in producing flex-fuel vehicles. Snell has 56 flex-fuel vehicles on his lot.

Several years ago GM helped Brazil transition from full dependence on foreign oil to complete independence. The country now burns ethanol fuels, in their case made from sugar rather than corn. Prices have gone from $6 a gallon gas to 60 cents a gallon ethanol.

Photo by John Cross
Training session on E85 at Snell Motors.
Officials from General Motors were at Snell Motors Tuesday to train employees and give information to customers about the expanded use of E85 fuel.

Gerlach said all of the Big Three auto makers are moving quickly to switch to flex-fuel vehicles, something that adds little cost — about $100 more — when done at the factory. Gerlach said representatives from Honda and Toyota have been talking to him recently about adding flex-fuel vehicles to their lines.

Pat Adams, sales manger at Clements, said his dealership has seen a big jump in interest.

"The awareness of it has increased dramatically the last six or eight months. We get a lot of questions on it.

"They see a 30 cents or 40 cents difference in the price (of E85) and they want to jump on it," Adams said.

Snell said he likes the idea of E85 because it benefits consumers who pay less for fuel and it helps farmers who grow the corn for ethanol plants. "There aren't many things where both the city and country residents benefit economically."

Gary Pestorious, a farmer from Albert Lea and a member of the national ethanol promotion board and Minnesota Corn Growers board, said his desire to promote and expand ethanol is simple.

"We need to stop giving money to our enemies in the Middle East."

He said the United States probably won't be able to replace all gasoline with ethanol or other biofuels, but it can make a big dent and ethanol could eliminate dependence on all Middle East oil.

America, which uses about 150 billion gallons of fuel a year, imports about 60 percent of it. Of those imports, 25 percent comes from the Middle East.

Pestorious said ethanol is now 3 percent of the fuel used. "If we get that to 20 percent, we erase the need for Middle East oil."

With the rapid increase in ethanol production, he thinks the country will get there soon. America produced 1 billion gallons of ethanol four years ago. This year it will produce 6 billion gallons. He said the country needs to get to 28 billion gallons a year to erase the need for Middle East oil.

Snell said most people know E85 exists, but there remains misperceptions about it. Misperceptions he and other ethanol supporters say are fueled by the oil companies.

"The biggest misperception is still that if I put ethanol in my vehicle, it's going to hurt it. It's not true," Snell said.

Gerlach said they have proven wrong various other attacks on ethanol.

People do get about 7 percent lower mileage with E85, not nearly enough to cut into the significant savings per gallon. (Critics have argued there is a 25 percent gas mileage reduction.)

Accusations that it takes more energy to make ethanol from corn than it produces are also untrue, Pestorious said. He said the technology to make ethanol has improved dramatically and is continuing to get better, making it an efficient fuel to produce.

Snell said there are also a variety of other material ethanol can be made from, from paper pulp waste in northern Minnesota to orange peels in Florida.

"There's so much possibility there. It just doesn't make sense for us to be totally dependent on Exxon Mobil and a couple of others for all of our fuel needs."

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