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Some ethanol plants cut out middleman to pass savings to drivers

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http://www.ethanolproducer.com/articles/9900/some-ethanol-plants-cut-out-middleman-to-pass-savings-to-drivers

Some ethanol plants cut out middleman to pass savings to drivers

 

...“Big Oil consistently touts the line that buying RINs equates to higher gas prices, but reality proves otherwise,” said IRFA Executive Director Monte Shaw. “The blender – the seller of the RIN – can and should pass the value of the RIN through to consumers.  In fact, Iowa ethanol plants are doing just that.  By offering higher blends like E85 directly to retailers, Iowa ethanol plants are passing along the RIN savings and hoping that retailers will reflect the lower wholesale prices at the pump.”

 

IRFA named two ethanol plants that offer E85 directly to retailers, Siouxland Energy and Livestock Cooperative, a 60 MMgy ethanol plant in Sioux Center, Iowa, and Absolute Energy, a 115 MMgy ethanol plant near the Iowa-Minnesota border. The two facilities announced implementation of the direct-to-retailers programs on May 24 and May 29.

 

Recent OPIS prices for E85 at Iowa terminals were $2.69 a gallon, IRFA pointed out, while at the same time SELC listed its E85 at $2.17 a gallon. “Here at Siouxland Energy, we’re passing on the RIN savings to the consumer, and it’s making for some very attractive E85 prices,” said Tom Miller, SELC commodity manager. “I think ethanol plants are growing tired of watching a middleman pocket the RIN value to the detriment of consumers. Our plant wants consumers to understand the real value of homegrown ethanol, so we’ve cut out the middleman and we’re selling E85 directly to retailers at a much greater discount.”...

 

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It is about time we see this, would like to see MUCH more of it.  Sad that such a logical step is "news"....

 

I would think if they were blending e85 with natural gasoline (denaturent) rather then gasoline... they could offer an even more attractive price...  this combined with blender pumps... would make for a pretty good system.

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Siouxland  is where the E85 and E30 I get at the blender pump comes from. The E85 is a $1 less than E10 and a $1.10 less than E0. Maybe when I told the manager at the C store he ought to have a chat with Siouxland about their price, awhile back, it did some good.

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Also, just got a newsletter from another ethanol plant and it talks about the IRFA working to get H. F. 640 passed so Big Oil can't restrict retailers from selling ethanol and biodiesel blends.

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thanks for spreading the word.  I seriously think that local ethanol boards simply need a "marketing/purchasing adviser" to go around and work with existing e85 stations to make sure that they are getting the most from their investment... especially the ones that they have invested grant money into...  them paying a grant to have a 5% spread and nearly no volume sold is NOT helping anyone.

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