Over the Blend Wall: E85 Retailing Costs and Constraints
The U.S. ethanol industry is rapidly approaching the maximum production volume that could be absorbed by conventional gasoline blends (i.e., those with a volumetric content of 10% ethanol or less). This limit, generally referred to as the “blend wall”, means that any further increase in biofuels to meet the mandated volumes under the Renewable Fuel Standards (RFS-2) must be achieved through either the increased penetration of mid and high-level ethanol blends, or the production of non-ethanol biofuel. Non-ethanol biofuels which are compatible with current vehicles and fueling infrastructure (so-called drop-in replacement biofuels) offer an appealing prospect, and should be pursued diligently. While these fuels are being explored, and efforts are made to overcome their identified technological and financial obstacles, it is worth examining the magnitude of the infrastructure costs associated with expanded cellulosic and advanced ethanol use. Insufficient retail capacity dedicated to E85 and low station/vehicle numbers are hampering the expansion of blends with more than 10% ethanol content. In 2010, less than 2% of retail gasoline stations offered E85 and only 4% of the light-duty vehicle stock had flexible-fuel capability. A national-level model of the ethanol supply chain allows examining the costs of infrastructure required to enable consumption of the volumes ethanol projected in RFS-2. Not only is more E85 retail capacity needed but retailers must be able to sell E85 at enough of a discount to make it attractive to consumers. Consideration of these issues will help inform the choice between waiting for a drop-in biofuel which could be used in the gasoline-based infrastructure and investing in retail capacity able to handle blends with higher ethanol content.
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Corporate Authors:
500 Fifth Street, NW
Washington, DC United States 20001 -
Authors:
- Leiby, Paul N
- Uria-Martinez, Rocio
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Conference:
- Transportation Research Board 91st Annual Meeting
- Location: Washington DC, United States
- Date: 2012-1-22 to 2012-1-26
- Date: 2012
Language
- English
Media Info
- Media Type: Digital/other
- Features: Figures; References;
- Pagination: 15p
- Monograph Title: TRB 91st Annual Meeting Compendium of Papers DVD
Subject/Index Terms
- TRT Terms: Biomass fuels; Costs; Economic analysis; Ethanol; Fuel mixtures; Service stations
- Subject Areas: Energy; Highways; I15: Environment;
Filing Info
- Accession Number: 01371339
- Record Type: Publication
- Report/Paper Numbers: 12-4559
- Files: TRIS, TRB
- Created Date: May 30 2012 3:00PM