E85 use back on the rise in Minnesota

Written by Administrator

(Posted by Paul Tosto on MPR News, July 13, 2010)

Back in February, I asked: Are Minnesotans voting no on E85?

I wrote, "While use of the fuel (85 percent corn-based ethanol and 15 percent gasoline) is rising in government fleets, overall E85 sales fell more than 25 percent from 2008 to 2009 following years of big increases."

Recent data from the state Commerce Department, however, show E85 consumption climbing back toward pre-recession levels.

In the worst parts of the recession, fuel use, including E85, dropped significantly, and the cost gap narrowed between gasoline and the typically lower priced E85. Those were the chief reasons consumption dropped.

The price gap widened again earlier this year as average regular gasoline prices ran above $2.70 a gallon most of the spring in Minnesota, while E85 averaged $2.20 to $2.26, which explains why the use of E85 is on the upswing again.

I eat my words!

Ethanol in the News

American Lung Association: Minnesota Uses More E85 in State-Owned Vehicles

(News release posted by PR Newswire on Manufacturing.Net - July 29, 2010)

Minnesota's state agencies continue to make steady progress in their effort to reduce the amount of petroleum consumed by publicly-owned vehicles. During the first two quarters of the year, state agencies used 437,063 gallons of E85, a cleaner burning fuel consisting of up to 85 percent ethanol and 15 percent gasoline. That represents a nearly 25 percent increase over the amount used during the same period in 2009, according to Tim Morse, chair of the SmartFleet Committee, a group tasked with helping agencies comply with Executive Order 04-10, issued by Gov. Tim Pawlenty.

(News release by Margaret Hart posted on Minnesota Department of Agriculture's website)

Minnesota's ethanol industry generated more than $2.5 billion in economic activity in 2009 and supported more than 6,800 jobs according to a new report from the Minnesota Department of Agriculture (MDA). Ethanol production in the state increased to 862 million gallons in 2009 from 550 million gallons five years ago. The MDA report estimates the industry is on tap to increase production to 1.1 billion gallons this year with a projected economic impact of $3.1 billion and approximately 1,500 additional jobs.