Despite ethanol boom, E85 still scarce in Kansas
By Edie Hall, The Hutchinson News
http://www.hutchnews.com/news/regional/stories/Ethanol061707.shtml
Several ethanol plants operate around the Hutchinson area. A major gas station chain is headquartered here. Carriers of E85, a blend of 85 percent ethanol and 15 percent gas, are eligible for a 40 percent state income tax credit on top of the 30 percent federal tax credit. And sales for flexible-fuel vehicles, which can be gassed up with the blend, are on the rise, creating at least the potential for an increased demand for the fuel. So, how many gas stations in this town carry E85?
Zero. Hutchinson’s lack of the fuel exemplifies a nationwide trend. Across the Midwest, ethanol plants are multiplying, yet only a small fraction of U.S. service stations carry the blend.
What’s the problem?
Nationwide and locally, one of the roadblocks is franchise agreements with oil companies that disallow the carrying of the blend. Experts say one way to get more E85 to consumers is by getting big retailers, such as Kroger Co., to carry E85 at their stations. Kroger and others aren’t under the oil company’s thumb.
Kroger spokeswoman Meghan Glynn said the company has no immediate plans to carry E85 in Kansas Dillons or Kwik Shop stations, although Kroger does carry E85 at stations in Texas, Ohio and Kentucky. “We plan to introduce it gradually in other markets,” Glynn said. “We continue to look for ways to expand offerings in other divisions and are working with the agencies in those markets as we roll this out.” Glynn declined to comment on why Kroger wasn’t carrying E85 in Kansas.
Supply and demand
Still, approximately 20 refueling stations in Kansas carry E85, including Bosselman’s in Salina and a Kwik Shop in Maize. Many gas station chains, including Kwik Shop, do include some ethanol - by law they can include up to 10 percent - in their gasoline. However, Mike Hoffman, president of Kwik Shop, said there are no plans to introduce E85 in Hutchinson at this time.
The Maize store has carried E85 for two years, and the corporate office is monitoring its success. So far, Hoffman said, its percentage of total gallons sold is nominal. On the other hand, Bosselman’s is seeing a good response.
“We added it because it was a farmer-friendly fuel that helps the environment and the farms,” said general manager Jeff Chaney, adding that it was a corporate decision made by the Bosselman family of companies, headquartered in Grand Island, Neb. “We’ve sold quite a bit of it. And we’re seeing the flexible-fuel vehicles more frequently.” That fits with what car dealers are seeing.
In Hutchinson, flexible-fuel vehicles are selling pretty well, but it’s mostly because consumers want to support Kansas farmers, said Nathan Blasi, new car manager at Midwest Ford. At Wichita-based Rusty Eck Ford, General Manager Doug Kinney said his flexible-fuel vehicle sales are up 33 percent over last year. Through May, he’s sold 477 Ford trucks and sport utility vehicles that are flexible-fuel adaptable. “It’s going to be a major thing,” he said. “I think before long, everything in the U.S. will be flex-fuel adaptable.”