Unity Biofuels brings in-pump blending to Iowa; refiners, retailers battle over 45-cent ethanol blender credit

In Iowa, Unity Biofuels will open one of the first in-pump ethanol blending systems in Mt. Pleasant, allowing customers to choose from a range of E85, E30, E20 and E10.

At stake is not only customer choice, but the $0.45 tax credit for ethanol, which is captured by the blender. In other states, retailers and refiners have been at war over the right to blend ethanol at the retailer level, shifting the credit from refiner to retailer.

Retailers, who make as little as a nickel in margin per gallon of fuel pumped at their station, say they need the added revenue to pay for ethanol infrastructure, and customers prefer the range of choices. The American Coalition for Ethanol earlier this year released test results showing no loss of mileage when using E30 compared to conventional gasoline. Unity opened a similar station in Ohio in August.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Unity Biofuels debuts in-pump ethanol blending system; could make E85 cost competitive with gasoline on cost-per-mile

In Ohio, Unity Biofuels has debuted a technology to permit blending of ethanol and gasoline in the pump. Currently, ethanol is blended into gasoline at the terminal. At stake: under US law, the $0.51 ...

American Petroleum Institute and NPRA sue to block NC law that would permit local retailers to blend ethanol

In North Carolina, the American Petroleum Institute and the National Petrochemical and Refiner's Association filed suit in US District Court to overturn the North Carolina Blending Act, which requires...

Growth Energy launches DrivingEthanol.org as online resource for retailers and consumers

In Washington, Growth Energy announced the launch of DrivingEthanol.org, an online resource retail information site that provides such as E85 and blender pump locations, uses of ethanol and a listing ...

100 Mgy Unity Ethanol plant on hold in Iowa; financing issues cited

In Iowa, the proposed 100 Mgy Unity Ethanol plant in Wapello County has been placed on hold, due to financing difficulties. The credit crunch also has impacted the price of oil, ethanol and corn, with...

Fuel marketers say oil refiners are supressing ethanol to keep prices, profits high; not so, says refiner association

A spokesman for the National Petrochemical and Refiners Association said that oil refiners was blending more ethanol than required to by law and that "demand for more ethanol just isn't there", accord...

Unity Ethanol and Cedar River Ethanol announce merger, new entity to produce 100 Mgy of ethanol

In Iowa, Unity Ethanol and Cedar River Ethanol have announced a merger. The development-stage company created by the merger is projected to produce 100 mgy of corn ethanol. The 100 Mgy figure has been...