OPIS hosts E85 conversion clinic
July 20, 2007
BY Susanne Retka Schill
Price points was the main topic of interest for people attending the first E85 Station Conversion Clinic sponsored by the Oil Price Information Service (OPIS) on June 25 at the Hyatt Regency in St. Louis. "There was a lot of interest in the pricing side of [E85], and whether there is a pricing sweet spot where E85 sales really take off," said Bob Gough, executive editor for renewable fuels and director of conferences at OPIS.
He continued, "You have to price E85 at around a 20 percent discount to regular unleaded in order to account for the fuel economy loss. That seems to be the magic number for the people selling E85 to sell enough to make it worth their while. For the people who own flexible-fuel vehicles, that appears to be the price point where they'll turn in and buy E85 as opposed to gasoline."
The 26 attendees at the clinic included people interested in adding E85 pump capabilities, those who have already been offering the fuel at their stations and ethanol producers.
Safety was also a topic at the clinic. Bob Dopp, director of the Franklin County, Mo., emergency management agency, showed a 20-minute safety video distributed by the Ethanol Emergency Response Council. "The video made it clear that you have to use an alcohol-resistant foam [when fighting ethanol fires]," Gough said.
Other speakers included Robert White of the Ethanol Promotion and Information Council; Phil Lampert, executive director of the National Ethanol Vehicle Coalition; Ray Hutchinson of pump manufacturer Gilbarco Inc.; and Greg Scott of the Coalition of E85 Retailers.
Gough said OPIS will host another E85 Conversion Clinic in the spring of 2008. "We try to limit our clinics to 50 people," he added. "It's a classroom atmosphere. They get to know each other by first names, and we try to have a lot of interaction."
Among other OPIS events, emerging technologies in ethanol and biodiesel, and the ethanol import and export picture, will be discussed at the OPIS National Supply Summit on Oct. 29-30 at the Lake Las Vegas Ritz Carlton. Also, Gough said OPIS will focus on policy issues at its fourth Ethanol and Biodiesel Supply Summit in Washington, D.C., on March 16-18.
He continued, "You have to price E85 at around a 20 percent discount to regular unleaded in order to account for the fuel economy loss. That seems to be the magic number for the people selling E85 to sell enough to make it worth their while. For the people who own flexible-fuel vehicles, that appears to be the price point where they'll turn in and buy E85 as opposed to gasoline."
The 26 attendees at the clinic included people interested in adding E85 pump capabilities, those who have already been offering the fuel at their stations and ethanol producers.
Safety was also a topic at the clinic. Bob Dopp, director of the Franklin County, Mo., emergency management agency, showed a 20-minute safety video distributed by the Ethanol Emergency Response Council. "The video made it clear that you have to use an alcohol-resistant foam [when fighting ethanol fires]," Gough said.
Other speakers included Robert White of the Ethanol Promotion and Information Council; Phil Lampert, executive director of the National Ethanol Vehicle Coalition; Ray Hutchinson of pump manufacturer Gilbarco Inc.; and Greg Scott of the Coalition of E85 Retailers.
Gough said OPIS will host another E85 Conversion Clinic in the spring of 2008. "We try to limit our clinics to 50 people," he added. "It's a classroom atmosphere. They get to know each other by first names, and we try to have a lot of interaction."
Among other OPIS events, emerging technologies in ethanol and biodiesel, and the ethanol import and export picture, will be discussed at the OPIS National Supply Summit on Oct. 29-30 at the Lake Las Vegas Ritz Carlton. Also, Gough said OPIS will focus on policy issues at its fourth Ethanol and Biodiesel Supply Summit in Washington, D.C., on March 16-18.
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