CORRECTED - GM seeking more U.S. ethanol fueling stations

Tue Feb 16, 2010 4:29pm EST

* GM spends $100 million a year on flex-fuel vehicles

* GM says the U.S. needs 12,000 ethanol fueling stations (Corrects spelling of GM executive's name to "Stephens" on every reference, corrects gallon-to-liter conversion rate)

By Bernie Woodall

KISSIMMEE, Fla., Feb 16 (Reuters) - General Motors Co's GM.UL growing output of vehicles capable of running on ethanol-gasoline blends won't help cut polluting emissions or U.S. dependence on foreign oil until a slim network of stations dispensing ethanol is greatly expanded, GM Vice Chairman Tom Stephens said.

Half of GM's vehicle lineup will be able to run on a mix of 15 percent gasoline and 85 percent ethanol, called E85, by the 2012 model year, said Stephens, GM's vice chairman for global product operations.

"GM is spending about $100 million a year adding flex-fuel capability to our vehicles. We can't afford to leave this capital stranded," Stephens said in a speech on Tuesday at the Renewable Fuels Association conference.

A copy of the speech was provided to reporters on Monday.

Adding the capability to run on E85 costs adds as much as $70 to the production cost of each vehicle, Stephens said.

GM has produced 4 million of the 7.5 million flex-fuel vehicles on U.S. roads now, said Coleman Jones, GM biofuel implementation manager.

Stephens said GM has worked with the National Governor's Association and ethanol producers and dispensers to add 350 more ethanol-blend pumps in the United States. He said GM would welcome federal government assistance to finance expansion of that network, but he offered no specifics on how that would work.

"Today there's 2,200 (ethanol fuel stations) that are out there but that's not enough," said Stephens.

"Two-thirds of the pumps are concentrated in 10 states and those 10 states have only about 19 percent of the flex-fuel vehicles that we have on the road," said Stephens. "That's a big problem for us."

Those 10 states are all in the Midwest, heart of corn production in the United States. Corn is the dominant source of U.S.-produced ethanol.

Stephens said there are about 160,000 U.S. gasoline stations, and there need to be 12,000 or more ethanol stations "to have ethanol fuel available for every one of our customers within about 2 miles of where they live. So, we've got some work to do there to get the additional 10,000 pumps in."

Ethanol-gasoline blends emit less polluting carbon dioxide than conventional gasoline and are mainly produced domestically.

Energy legislation passed by the U.S. Congress in 2007 set binding targets for fuel blending each year. Ethanol use is to rise to about 20.5 billion gallons by 2015 and 35 billion gallons by 2022 from 4 billion gallons in 2006 and almost 13 billion gallons in 2009.

One gallon of liquid equals 3.7854 liters.

The U.S. Environmental Protection Agency has said that ethanol-gasoline blends must increase the ethanol portion to much higher than the current limit of 10 percent and increase use of other sources of ethanol than corn, such as switchgrass and landfill and farm waste. (Reporting by Bernie Woodall; Editing by Hans Peters)

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Comments (8)
E85Prices.com wrote:
The Proverbial Chicken & the Egg.

But the answer was provided by Mr Stevens himself .

[quote]Adding the capability to run on E85 costs adds as much as $70 to the production cost of each vehicle, Stevens said.[/quote]

Consider that costs against the up-to $150,000 for each E85 Pump for the Station owners.

The Station owner needs a lot of volume to recoup that investment..but they can cant that necessary volume without the flex fuel vehicles

Feb 16, 2010 8:40am EST  --  Report as abuse
E85Prices.com wrote:
So clearly all vehicles need to be FFVs first..

The next step is the installation of Blender Pumps ..not “just” E85 Pumps.

The Ethanol Industry also needs Volume to be viable..which is why the Ethanol Industry has nearly all it’s attention on E10.

Of the 11+ Billion Gallons of Ethanol produced this year 98% goes to using Ethanol as an additive (E10)instead of a Alternative Fuel like E85

Feb 16, 2010 8:49am EST  --  Report as abuse
E85Prices.com wrote:
Blender Pumps are the Key for Volume that makes the Installation viable for Station owners

Blender Pumps can dispense NL, E10, E20, E30, E40…as well as E85

The fuel pump can now be used by ALL vehicles on the road today as well as all the flex fuel vehicles vehicles coming off the assembly line

Feb 16, 2010 8:57am EST  --  Report as abuse
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