Going With the Grain

CHS expecting increased demand for E85

Published in CSP Daily News

ST. PAUL, Minn. -- CHS, a supplier of bioenergy products marketed under the Cenex brand, said it will begin offering E85 blends at 22 terminals located in Colorado, Iowa, Illinois, Kansas, Minnesota, North Dakota, Nebraska and South Dakota.

This integrates E85 into the existing petroleum distribution infrastructure and better positions Cenex branded marketers to meet growing consumer demand for E85.

Offering finished E85 at the terminal eliminates the need for retailers to deal with becoming a blender' in the eyes of the U.S. [image-nocss] Internal Revenue Service (IRS) and claiming the federal tax credits available on ethanol blends like E85 on their own, CHS said.

Bioenergy products are high performing, good for the environment and as an integrated energy, grains and foods-based company, these products are an ideal strategic fit for us, said Doug Dorfman, refined fuels marketing manager at CHS. Our producer-members grow soybeans and corn used in biodiesel and ethanol fuels, and our grain division procures and processes corn and soybeans into oil and other food ingredients.

Availability of and demand for E85 is on the rise driven by interest from consumers interested in a domestically-produced, environmentally-friendly alternative to conventional gasoline products, the company said. Currently, auto manufactures recommend E85 only be used in flexible fuel vehicles (FFVs) designed to run on gasoline or varying amounts of ethanol, ranging from zero to 85% (E85). More than 4 million FFVs have already been sold in the United States. As more FFVs come on the road, more retailers will begin offering E85. CHS will continue to monitor demand and evaluate offering E85 at additional petroleum terminals.

We congratulate CHS on the proactive move to E85, said Curtis Donaldson, chairman of the National Ethanol Vehicle Coalition. With this announcement, E85 development will spread rapidly across the eight-state region.

While only a limited number of retailers offer E85 at the pump today, we expect the number of locations to grow as demand increases and product becomes more available at the terminal, said Dorfman.

Cenex has more than 1,600 local cooperatives, independent retailers and more than 800 Cenex-identified convenience stores from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. Its products include refined fuels, propane, lubricants and related equipment. Cenex is a brand of CHS, a diversified company providing grain, food and energy resources.