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New YellowHose.com location

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We brought a new E85 pump on line yesterday at J&H Family Stores

3434 Remembrance Road Northwest, Walker, MI 49534

E85 is now $1 less the regular.

 

Thank you J&H and Carbon Green BioEnergy for delivering a Clean, Renewable, Michigan Made alternative for every FlexFuel owner in Walker, MI!

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I forgot to thank Michigan Corn Growers for the $5,000 grant that helped in this conversion from a diesel product possible.  They are really stepping up the game in our state and many improvement in this state are on the way because of their commitments to expand the higher level blend locations.

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Morning Mitch,

 

 

What is the cost these days for a basic E85 conversion these days .. If I recall correctly from a  couple years ago 1Outlaw/Phil was saying around $25K and 250K for a full new pump and tank .. are those numbers still in the ball park?

 

 

I was full throttle on Vilsaks Blend Pump install program from the REAP program but have since come to the realization that even with the reap funding the blender pump may be cost prohibitive and that basic E85 installs may have been a better approach . Can get roughly 4 times as many E85 installs for the cost of 1 blender

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Dan,

 

The cost for installation is highly variable and is majorly driven by the underground work required.

 

For this station there was no underground work required.  They simply had 2 diesel options and chose to replace 1 with E85.

 

All in cost was approximately $15,000.  This process is the least expensive and includes.

 

1. Material compatibility review for all underground piping, connections, & tank.

2. Cleaning the tank

3. New dispenser including a 1 micron E85 filter, stainless steel nozzle & of coarse a yellow E85 hose.

 

J&H is installing new dispensers that are UL rated for E85.  The basic 1 product dispenser is about $10,000 & a FlexFuel blender is about $20,000.

 

I always encourage the FlexFuel pump that can deliver E10, E15, E30 & E85.

We have found this combination or pumps like Peterson Oil in Greenville, MI which offer E10, E20, E30, E40 & E85 to move the most ethanol gallons.

 

This sets the station operator up for maximum flexibility to meet future desired blends & get the maximum utilization of the expensive underground system.

 

In this example of the J&H installation the cost difference between FlexFuel & E85 dispenser was not the reason for E85 only.  The driver was there was not E10 piping to this dispenser location because it was a dedicated diesel spot.  It was quick and low cost to add E85 and the owner wanted to complete the project prior to year end to take advantage of the federal alternative fueling infrastructure tax credit.

 

Our FlexFuel Pump at Carbon Green BioEnergy's was a 10 year old Dresser Wayne 3 Plus 1.  I paid $1,250 for the dispenser and added new graghics, hoses, nozzles & breakaways.  Add 2 used above ground 2,000 gallon tanks fireguard style tank, concrete, electrical, permits, piping, installation, bumper posts, ruby system etc. and about 400 in house man hours and we have invested $70K.  Well worth the 24hr sales of about 500 gallons total product throughput we are seeing in a very rural setting.

 

Hope that helps!

 

Mitch

 

 

post-2800-138947099301_thumb.jpg

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Dan- that $250,000 was for the entire turnkey unattended station build, 2 blender pumps with cash acceptors/card readers, software, 2-12,000 double wall tanks, concrete, electrical, etc. In the beginning it even covered my asphalt and engineering costs (so all except land) but costs were creeping up towards the end and the UL label looked like it was going to cost 5K per dispenser. Still angry about the UL bit- those non-UL out of the box gasoline blenders never showed any need to have any upgrades- only the stinking gas sides had meter/valve issues.

 

The 25K for dispensers included the $5,000+ for cash acceptors and our graphics but did not include UL costs. They were Gilbarco series S 3+0 (3 blend) 3 hose.

 

I never cut corners on signs, canopies, graphics, or software (dumped Ruby as fast as possible) because those are the items that invite and retain due to professionalism- I caution against cutting too many corners. In spite of mostly rural or small town locations- very best locations averaged 850K-900K gal annual sales (about 300K ethanol) but the 2 losers were 300K annual (too little to cover overhead- ours were stand alone so also had to support landscaping, snow removal, etc) We had 18 total.

 

In summary- putting a 12,000 gal E85 tank in an existing station and tying into existing gasoline line will NOT cost 250K- - likely less than 1/2 that on the high and difficult side. But then- I have not bought one for about 3 years.

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Congrats on your new location! Too bad the 60 miles across the lake is really hundreds of miles "around" it... you could expand into eastern WIS :)

 

Thanks for that insight Phil I often have wondered what the actual costs were with the type of stations that you built.

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  Would be nice if every state had 1-2 ethanol plants that took a pro-active role in alternative fuel distribution like this... 

 

Imagine if the ethanol industry had started off on THIS foot (like the "yellow hose" folks) 10 years ago?  Preaching to the choir here as this has been our mantra all along!

 

Fire up the time machine boys! ;D

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