U.S. seeks higher ethanol fuel consumption, aims for 10,000 new flex-fuel pumps
The Obama administration hopes to install 10,000 flexible fuel pumps in the U.S. over the next five years, allowing drivers to blend gasoline with up to 85 percent ethanol (E85) in cars able to handle such mixes.
To do that, the administration will offer incentives to gas stations who install such pumps, U.S. Agriculture Secretary Tom Vilsack recently told reporters, according to news agency Reuters.
The efforts are part of a plan to boost U.S. consumption of ethanol. Most gasoline sold in the U.S. is a blend of 10 percent ethanol, though the U.S. Environmental Protection Agency (EPA) in January approved raising that limit to 15 percent for newer cars and trucks.
At present, only about 2,350 of the 167,800 US gas stations offer E85, Reuters reported.
“The question will be if that higher blend of ethanol is readily available, immediately available,” Vilsack said to news reporters. “We still have a great deal of work to do.”
Funding will come from grants and loans from the U.S. Department of Agriculture’s (USDA) Rural Energy for America Program, Vilsack said, noting that the average cost to install a flex-fuel distribution system, pumping system and tank at a gas station is $120,000.
The adjusted price for E85 is slightly higher than the average for premium gasoline, given lower energy content. As a result, price-conscious consumers could be resistant, according to analysts.
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