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ST. PAUL, Minn. -- CHS Inc., which supplies of bioenergy products marketed under the Cenex brand, 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 IRS and claiming the federal tax credits available on ethanol blends like E85 on their own.
“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. Currently, auto manufactures recommend E85 only be used in flexible fuel vehicles (FFVs) designed to run on gasoline and/or varying amounts of ethanol, ranging from zero to eighty-five percent (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,” stated Curtis Donaldson, chairman of the National Ethanol Vehicle Coalition. “With this announcement, E85 development will spread rapidly across the eight-state region.”
With more 800 branded convenience stores, Cenex is the nation's 13th largest convenience store chain in the United States. “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.