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Allch Chcar

Kentucky and the VEETC

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This station does not... it is a little "mom & pop" station.  Used to be an old classic "service station" with 2 bays and a small office area, with a small canopy with 2 islands (so 4 pumps).

 

A local couple bought this abandoned property, replaced the tanks, added newer pumps, and made the service bays into a diner... they have breakfast/lunch specials... pretty popular with the retired community, farmers and construction workers...

 

They office area stocks 3-4 brands of cigarettes, about the same of gum and candy bars...

 

Really an odd little place.  BUT they DO have e85 and e30.  From my brief visit with one of the owners, she sounds like they simply like providing the service and that they are not in it to strike it rich.  I don't see this place delivering fuel.

 

 

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The station may not have it's own tankwagon or transport but either has the E30 tank splashed with E85 (coordinated with gas transport delivery) when it gets E85 delivery or a local tankwagon delivery fleet goes into the plant to load some bug juice (technical term for ethanol  ;D ) and then stops off at the station. This last method is difficult because it:

1) requires a bottom load tanker with Sculley interlock- most tankwagons are not thus equipped.

2) requires the ethanol plant to allow a truck in the line that only wants a dash and yet still takes as much or more time to process, bill, etc as 10- 29,000 gal rail cars or a 8,000 gal semi.

3) experiences very high freight costs on tiny moves (ie 500-1000 gal)

 

I bet this station owner wishes he would have put in a blender so he could just do the E30 and possibly the E85 himself. :)

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Fascinating! ;D

 

Now, what would be the best way to figure out how my local Ethanol plant blends into the local fuel?

 

We've got one Ethanol plant in all of Kentucky, which is in Central KY, and all of the Oil refineries are in the eastern KY region. Kentucky has lower taxes, so my bets are the fuels stays in-state.

 

If they sold to the refineries that would mean E85/E70 in the Jackson purchase area would be shipped halfway across the state then back across the entire length!  :o

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Fascinating! ;D

 

Now, what would be the best way to figure out how my local Ethanol plant blends into the local fuel?

 

We've got one Ethanol plant in all of Kentucky, which is in Central KY, and all of the Oil refineries are in the eastern KY region. Kentucky has lower taxes, so my bets are the fuels stays in-state.

 

If they sold to the refineries that would mean E85/E70 in the Jackson purchase area would be shipped halfway across the state then back across the entire length!  :o

 

It does not matter where the oil refineries are at all. Very little gasoline or diesel fuels are truck loaded at oil refineries--they put their production into pipelines to send where buyers have committed to purchase- in many cases 30 days prior for a pipeline tender of 220,000 gal. What does matter with E85 is where is the ethanol production facility, what capabilities do they have to blend natural gasoline (C5 pentane) or gasoline, how locked up are they by their broker or their knowledge/ lack of desire to do wholesale E85. And KY does not likely rely on the one ethanol producer anyway (E10 sucks that and more all up)- across the Ohio river there are many facilities and lots of bridges to get there. ;D  . Plants to the north and west are moving ethanol eastward- often all the way to the East coast or Florida by rail--KY is an easy path. That said - ideally the station should be able to bring in a full load (8200 gal) of E85 (10-12,000 gal tank) and the ethanol plant should be within 150 miles. Lowest cost ethanol in the USA is typically Nebraska, Dakotas, or Western IA due to distance to major markets (TX, CA, NY, FL) and the rail freight to get there- thus the KY ethanol plant is receiving a higher price than one lets say- in MN, NE or WI.  Freight on such a load moving 150 miles would be about 5-6 cents--- THIS IS WHY THE RETAILER SHOULD NEVER PUT IN A SMALL TANK FOR ETHANOL! A 2,000 gal delivery traveling that far would have 20-30 cents freight cost!

 

The only way to know how the station gets his product is to ask the owner. The only way to know what the ethanol plant does is to call them, ask for the corn buyer (who likely sells the ethanol) and ask but it is unlikely he will talk with great detail beyond yes or no on blending E85 (grain guys are big on secrets since knowledge is power and value). The other way is to ask the state fuels inspector or local Clean Cities people. If you do get to talk to a real person and they show interest in direct marketing to stations but need advise how- pm me and I will call them if they want.

 

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