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ATC FLEET SEMINAR. Presentation by: Jill Hamilton, President Sustainable Energy Strategies, Inc. Jill.sesi@cox.net 703-322-4484. Overview. National Ethanol Issues: RFS Regional E10 Situation Regional E85 Program Contact Info. What is RFS?. Energy bill eliminated Oxygenate requirement
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ATC FLEET SEMINAR Presentation by: Jill Hamilton, President Sustainable Energy Strategies, Inc. Jill.sesi@cox.net 703-322-4484
Overview • National Ethanol Issues: RFS • Regional E10 Situation • Regional E85 Program • Contact Info
What is RFS? • Energy bill eliminated Oxygenate requirement • Replaced it with a RFS • Program to displace 10% of US petroleum use with renewables by 2014 • Congress did not include an MTBE liability waiver, creating a demand for ethanol and biodiesel
What do that mean for… • Production • Yield of Corn • Economic Impact • Energy Security
Production What Impact will RFS mean in terms of production needs? RFS requires 8 billion gallons of ethanol annually by 2012. Our current capacity is 3.6 billion gal/day In 2004, ethanol industry produced 3.4 billion gal/day This was up 100% from 2002
Corn Yield • We will need 5.5 billion bu of corn by 2014 based on 2005 yields • Yields are projected to increased from 2.9 gal/bu…3.36 by 2014 • Corn for ethanol is expected to increase from 15% to 40% of market share
Economic Impact of RFS • $6 billion to build 4.3 billion gal. capacity • $70 billion on goods and services to get to 8 million gallons of capacity • $200 billion in indirect • $43 billion in household income • Create 234,840 new jobs
Energy Security • Will displace 2.13 billion bbl of crude oil by 2012 • Will reduce US dollars to foreign producers by $64.1 billion between 2005-2012 • Foreign oil sales to be reduced by an estimated 62%-67%
E10 Has Arrived • MD, VA and DC blend 100% E10 • Ethanol can be railed and barged into Baltimore • All being used for the E10 market • Being shipped to Virginia and DC
Public E85 Stations • Pentagon Citgo on Joyce Street • Ft. Meade Chevron in Laurel • Montgomery County in Gaithersburg • Annapolis Citgo on West Street • DC Fleet Maintenance on New Jersey Avenue
E85 Increased Sales • Tri-State Area: ~ 400,000 gallons of E85, • 42 percent increase in E85 fuel sales from last year • ’06 to be over 500,000
Promotion of E85 • Dispenser Signage • Highway Road Signs • Targeted Coupon Program • Radio Advertising
Characteristics • Octane E85: 100-plus octane (as high as 105) • Lower heating value (27% less energy) • Non-toxic, pleasant smell • Handling: treat same as gasoline (blended with gasoline) • Dispensing: Aluminum replace with stainless steel, nickel plated components, 1 micron filter
Coupon • We had targeted 6600 vehicle drivers • Mailed a sample to 2200 • Poor response to coupon • But, incredible response to lower price of E85 vs. gasoline so the promotion did impact consumers!
WRNR • Two months of tag lines (250 promos) • Ethanol Minutes (66) • Gas give-aways (60) • On-site radio spot • Two hours of gas sold at $1.03
WRNR Advertising • Picture of $103.1 day.
WHAT’S AHEAD IN 2006 • Baltimore Station Opening • UMD - College Park Contract Signed • Continued Marketing and Advertising • GM – Live Green Go Yellow – Trailer • Looking for partner to do another radio ad • Continue to support OEMs • Seeking potential E85 locations
Resources • MD Grain Producers: marylandgrain.com • National Ethanol Vehicle Coalition: 573-635-8590/ E85fuel.com • National Corn Growers Association: 202-628-7001 • Sustainable Energy Strategies, Inc: 703-322-4484