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Cooperatives started blender pump sales Tuesday, October 30, 2007
Agri News staff writer
BELGRADE, Minn. -- Two Minnesota cooperatives have started blender pump sales.
Border States Cooperative in Ortonville and Belgrade Co-op Association in Belgrade are offering five ethanol and gasoline blends to customers. E-10 is the standard ethanol-gasoline blend all vehicles can use. The remaining four blends, E-20, E-30, E-50 and E-85 are offered for flex fuel vehicles.
Station managers say customers blended their own mix before the pump options were offered. Now it's automatically blended for them.
"I have several flex-fuel customers who weren't using any ethanol because of the mileage loss they were getting on E-85," said Belgrade Co-op Manager Jeff Koehler. "Now they come to use either E-30 or E-50 and they say they aren't experiencing that loss."
Border States Convenience Store Manager Kim Sykorahears similar stories. One customer found he was losing one mile per gallon on E-20, but a switch to E-30 made using the fuel a "break even," she said. Sykora uses E-30 in her company vehicle and is getting the same gas mileage she had before the blender pumps were available.
Business has increased at both stations. The Ortonville co-op is averaging 300 gallons sold a day.
The Belgrade station has offered five blends for three weeks. Koehler says they are getting repeat business because of it.
Borders States was the first to offer blender pump sales. The pumps were installed last November when the station first offered E-85 to its customers.
"We did it hoping they would eventually add other blends," Sykora said.
Belgrade installed its blender pumps last year in anticipation of renewable fuel legislation and greater use of ethanol. The legislation approving different blends was passed in September, Koehler said.
A grant from the American Lung Association helped the cooperative cover some costs.
The Belgrade station has two underground tanks. One contains E-10 and the other E-85. The blending takes place electronically and mechanically, he said.
Koehler has heard more from policymakers than customers about the blender pump. He's had about four discussion with research organizations.
"I've probably seen more interest from that side than the retail side," he said.
Several area Cenex stations are considering adding blender pumps, Koehler said.
"This has been great," Koehler said. "For Cenex to allow these products to be sold under their canopy is a pretty strong statement. You don't see the other gas companies doing this. It's pretty important that Cenex lets us do that under their colors."
Belgrade Co-op Association has 365 producer-owners.
Border States Cooperative has five locations. Two stations are in South Dakota at Milbank and Sisseton. The other Minnesota stations are in Clinton, Ortonville and Browns Valley. Ortonville is the only station to offer blender pump services. Milbank has an E-85 pump and cooperative officials are considering adding a blender pump, Sykora said. |
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