Wednesday, June 8

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Demand for E85 grows with flexible-fuel vehicle sales          Send a link to a friend 

[JUNE 8, 2005]  ST. PAUL, Minn. -- CHS, a leading supplier of bioenergy products marketed under the Cenex® brand, announced it will begin offering E85 blends at 22 terminals located in Colorado, Iowa, Illinois, Kansas, Minnesota, North Dakota, Nebraska and South Dakota.

Availability of and demand for E85 is on the rise, driven by consumers interested in a domestically produced, environmentally friendly alternative to conventional gasoline products.

Currently, auto manufacturers recommend E85 only be used in flexible-fuel vehicles designed to run on gasoline or varying amounts of ethanol, ranging from zero to 85 percent, or E85.

The new E85 fuel is available at the Qik-n-EZ at 520 Keokuk, Lincoln, Ill.

"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," says 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."

More than 4 million flexible-fuel vehicles have already been sold in the United States. As more come on the road, more retailers will begin offering E85. CHS will continue to monitor demand and evaluate offering E85 at additional petroleum terminals.

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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.

"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."

"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," says Dorfman.

Visit http://www.e85fuel.com for a list of flexible-fueled vehicles by manufacturer and locations that sell E85.

[LDN and news release]

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