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gasisoutrageous

YellowHose.com - Now online!

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As mentioned previously, at least 18 west and central Michigan E85 retailers are participating in a program with Carbon Green BioEnergy to offer E85 at least $1 below regular.

 

YellowHose.com is a site just launched by these folks showing where in Michigan you can purchase E85 at least $1 below regular. The list is growing, and they're hoping to expand east of Lansing soon.

 

I should note that we have had some recent additions. McCormick Fuel, which has a retail fuel outlet in Muskegon, and another in Whitehall, are now on board. We also have three Shell locations along I-94 in southwest Michigan.

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They could have consulted us for a better domain name couldn't they have? Although if a domain name is to be descriptive and applicable, it's a good choice I suppose. It is a cool site!

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Billy wants to know when they're coming to Pennsylvania....  ;D

Billy, I'd send them a message. You can email Carbon Green BioEnergy directly via their website, or you can contact Mitch, the CEO directly. He is user ZL1DER on twitter and this site. Just let them know you're interested in the program... and they'll definitely get back to you as well as look into it.

 

You can also try contacting the folks at your nearest ethanol plant and point out the success that Carbon Green has already had.

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Took a quick peek - interesting site... so the premise is any station can get on by selling E85 at a buck less per gallon?  Not a bad idea...couple of suggestions just shooting from the hip:

 

While the "$1 per gallon" has some gut level appeal, I don't know how long standing it will be.  If gas happens to fall to $2 per gallon, might be pretty hard to get E85 at a buck per gallon.  Likewise if gas skyrockets to 6-7 bucks per gallon, $1 cheaper ethanol might still be loosing money with under a 15% spread.  Granted, extreme cases, but look what gas has done in the past few years.

 

Would be really nice to see it tied to a percentage...20, 25, 30% cheaper.  Today's average gas price is $3.28, so $2.28 ethanol would be 30% cheaper.  Maybe base the site on percent and make 30 the benchmark so it will be more 'timeless', but show the $$ figure as well?

 

Is this just going to be Michigan, or spread out all over the US? (the latter would obviously be nice!)

 

I guess stations get kicked off or blacked out if they don't keep the price spread?

 

Get the corn off the page...or at least zoom out and make it less noticeable...that is one of the first things anti-ethanol starts whining about, and it's downhill after that!

 

Anyway just my .02!

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Here, I'll chip in an make it $.04! ;D

 

I'm with you on the corn sentiment, Corey. Personally, I don't buy the food vs fuel nonsense at all. In fact, I find myself responding to it almost every day in defense of ethanol. But we need to bring over the folks on the fence and those who could be persuaded. Even today, not quite all ethanol is made from corn.

 

As far as the spread goes, I had the same thoughts when I caught wind about how Speedway offers fixed spreads. One prevalent answer to that is this. The Midwest, in addition to being the corn belt, is known by some as vulnerable to something called "the Speedway effect". The Midwest is where Speedway lives and operates. When you get a chance, check out gas price graphs on Gasbuddy. Check out the graph going back at least a year - and compare Lansing, MI with a city like Tucson, AZ - which has no Speedway presence at all. Notice how the graph for Lansing is rockier than the Rocky Mountains? And how Tucson's is not?

They more than make up for any losses with the profits they make from jacking up the prices. That, and most of the E85 around here is actually blended with other hydrocarbons - i.e. natural gas - and not gasoline. Natural gas is extremely cheap, and adds minimal cost when blended with ethanol - which is currently around $1.77/gallon. Even at the bottoms, they're still making at least a meager profit. If they're losing on E85, they're most likely losing on gasoline.

Also, fuel is usually not where the profit is anyways. That's why any of these stations, especially J&H, like to draw customers in store where the real profits are. That's why I make sure to go in and buy a coffee and a candy bar.

 

As for as going national, I'm sure they'd be open to that. What would be awesome is a "co-op network" of all these ethanol plants doing something like this. Now that, I'd love to see. Then again, is a 'pilot' program of sorts. We shall see where it goes from here. I say we contact the various ethanol plants around us... and point out the success this program has already had.

 

As far as stations getting booted off... that one you'd have to contact Carbon Green about. I'm not sure how that works. I can say, however, that this does not forbid these stations from going above $1 spread... in fact, a couple have gone up to $1.20.

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