Why is it beneficial for stations to consider offering fuels dispensed from a blender pump? Though E10 is the most predominant way for ethanol to be retailed today, new national renewable fuels targets are leading the way to increased ethanol use.
The Renewable Fuels Standard passed in the 2007 energy bill calls for 36 billion gallons of ethanol use by 2022 – a level that, for the first time, guarantees ethanol will comprise more than 10% of the nation’s gasoline supply. Higher blends of ethanol will be a reality for America’s future fuel market. E85 will certainly be a part of this, as will mid-level blends between 10% and 85%.
Installing blender pumps offers product flexibility – a valuable asset in today’s changing fuels market. Station owners can use the blender pumps to dispense mid-level ethanol blends for FFVs or a more traditional slate of fuels like unleaded, E10, and E85. Blender pumps also give retailers the option to take advantage of VEETC – the Volumeric Ethanol Excise Tax Credit. Either way, the station owner is prepared for any ethanol-blended fuel combination in the future.
It is possible that ethanol blends beyond 10% will be an option for all American motorists in the future. Blender pumps allow petroleum marketers to be ready today, while retaining the flexibility to make the decisions on fuel offerings when the time is right for them.