Fuel retailers have many choices today, from the brand of coffee to offer inside the station to what fuels to offer under the canopy. E85 provides consumers with another fuel option at the pump.
E85 (85% ethanol and 15% gasoline) is ~98 octane and reduces emissions more than 30% over straight gasoline. E85 is also defined as an alternative fuel and is required for use by some fleets.
E85 can only be used in flex-fuel vehicles (FFVs), which are capable of operating on E85, straight gasoline, or any combination of the two. There are now more than 24 million FFVs on the road, or roughly 8% of all vehicles, representing more vehicles than require premium today.
Equipment
E85 does require different equipment than regular gasoline. This equipment can have an additional cost above the gasoline-only version, dependent upon the component. A retailer can choose a conversion kit for existing equipment or purchase new component parts. E85 can easily be incorporated into multi-product dispensers, eliminating the need for stand-alone equipment. Introducing E85 can also offer additional opportunities to provide other mid-level blends.
Incentives
There is a federal tax credit for fuel retailers to offer E85. This credit is available through tax year 2021. Click here for more information.
Other available incentives can be reviewed here. If you have questions, please contact Cassie Mullen.
