Future for ethanol blends in Alabama and the United States

1. Future for ethanol blends in Alabama and the United States Michelle Kautz Market Development Manager

3. Use of ethanol today • Every vehicle in the nation can operate on up to 10% ethanol. • Most small engines can operate on up to 10% ethanol. • Most marine engines can operate on up to 10% ethanol. • Total gasoline use in 2007 was approximately 143 billion gallons. • Limit of amount of ethanol that can be used today is 14.3 billion gallons. • Realistic national consumption is 13 billion gallons.

5. 2022 use of ethanol Increase of 20 billion gallons in 12 yrs Current use of Ethanol

6. Limit of ethanol use in existing vehicle fleet at 10% blends is 14 billion gallons, High level blends of ethanol MUST take on a greater role in the use of ethanol in general. This will be through the use of higher level blends in “legacy vehicles” or use of higher level blends in FFVs. 14 Billion gallons

7. Growth Energy is addressing these opportunities by advancing several policy issues: • Allow up to 15% ethanol in conventional vehicles • Waiver request submitted in March of 2009 • Dec 2009 • EPA indicated that initial results were “promising” and expect final decision in June of 2010 • Massive production of Flexible Fuel Vehicles • Voluntary production preferred • Otherwise • Massive development of new liquid fuel dispensing systems, i.e. Blender Pumps

8. From 272 Luminas produced in 1992

9. More than 8 million FFVs Today.

11. Flexible Fuel System FFV equipment adds from $75 to $200 to each vehicle No Additional cost to consumer

12. “There’s no reason the automotive industry can’t go to 100 percent E85 vehicles, and the world we love doesn’t have to change. It requires the least change in consumer behavior.” General Motors Vice Chairman Bob Lutz Source: Automotive News, January 21, 2008

13. Flexible Fuel Pumps for Retailers Separate hoses for flex fuel and standard fuel Contrasting labels for standard and flex fuel. White – standard fuels E10 ≈ 87% Unleaded/13% E85 E85 Contrasting labels for standard and flex fuel. Blue – flex fuels Blends above E10 clearly labeled “for flex fuel vehicles only” Unleaded E85

14. Same day pricing, Sept. 2006

15. Future Retail Fueling Stations 15

17. About 2,115 E85 and Blender Pump stations across the U.S.

18. 132 Blender Pump Stations

20. Number of FFVs in Alabama 156,280 in October 2009

21. E85 Stations vs. FFVs in Alabama10 E85 Stations

22. FFVS in Dothan, AL and surrounding zip codes

23. Energy Policy Act of 2005 The alternative fuel required for use in the vehicle is not reasonably available (within a 5 mile or 15 minute drive of the vehicles' garaged location) 5,464 Federal FFVs waivered in the state of AL

24. What Growth Energy can do for YOU

25. Growth Energy can support efforts by: • Providing technical support • Providing materials • Political support-i.e. Feds actually using facility • Assisting with coordination • Limited financial support $2,500 per site for E85 & $5,000 per site for mid-level blends and E85 (blender pump installation)

26. Infrastructure Development Program: • First come, first serve • Can use additional Federal Income Tax credit • Must sell for 3 years • Must use pump imaging package

27. Pump Imaging Package:

28. The Bottled Water – Ethanol Blend Opportunity Then Now = Profit

29. Thank you for your time and support. Questions? Michelle Kautz, Market Development Managermkautz@growthenergy.org 573-635-8445 Growth Energy Market Development