Tri-State Neighbor: South Dakota Farm Newspaper

Reid Jensen, South Dakota Corn Utilization Council president, helps unveil a new blender pump program in South Dakota May 1. Tri-State Neighbor photo by Wendy Sweeter

Gas stations in South Dakota now have the opportunity to offer more fuel selections to their consumers.

The South Dakota Corn Utilization Council (SDCUC) and the Ethanol Promotion and Information Council (EPIC) unveiled their plans May 1 for a new blender pump program in South Dakota.

“This program will allow more ethanol to be blended, more ethanol to be consumed in the state of South Dakota where it is produced, a homegrown fuel,” said Robert White, director of operations for EPIC. “It has worked very well with E10 and E85, and this is simply the next step.”

White cited recent studies showing an increase in fuel economy for flex-fuel vehicles by using mid-level blends like E20, E30 or E40.

“Imagine being able to use a product that's 30 percent ethanol, is priced lower, produced at local ethanol plants, produced from local corn and saves you money at the same time,” he said. “Sounds priceless to me.”

These mid-level blends are currently approved by the government for use in flex-fuel vehicles only.

Through the blender pump program, the SDCUC will provide up to $5,000 to each station that adds a blender pump. EPIC will provide all “e” brand imaging, plus marketing and public relations support.

SDCUC president Reid Jensen says South Dakota is an obvious place to implement this program.

“Because of our strident ethanol industry, South Dakota is the perfect launching pad for a blender pump program that will allow consumers to flex their fuel,” Jensen said.

While South Dakota has about 20 blender pumps, the two groups would like to see a minimum of 100 pumps installed through this new program. They say by installing blender pumps, ethanol consumption will increase in the state.

“If you look at E10 consumption, you're somewhere around 42 million gallons per year. No doubt if you take that to a 20 percent, 30 percent or even 40 percent level that increases substantially,” White said. “You could add easily another 40 million gallons of ethanol used in the state. That's important for the state of South Dakota, instead of shipping it elsewhere across the country.

“It can be utilized locally, not only saving the consumer some money, but also increasing the profitability of the ethanol plants in the state,” he said.

South Dakota Secretary of Agriculture Bill Even says this program will help expand the use of ethanol in the state. He has been working with other state ag secretaries to get these mid-level blends approved for use in non-flex-fuel vehicles.

“The state of Minnesota is working on getting a waiver from the EPA that would allow higher blends of ethanol - E20, E30, E40 - to be used in non-flex-fuel autos,” Even said. “I've worked with all other 50 state ag secretaries in the United States and was able to get all 50 states to sign on in support of the work that Minnesota's doing for higher blends of ethanol.”

Even met with officials at the Environmental Protection Agency in Washington, D.C., in February about the waiver. At that time, the EPA was looking at about 18 months before a decision would be made on the waiver.

Jensen, White and Even all agree that South Dakota ethanol production will benefit from this new blender pump program.

“Our ethanol industry has over $1 billion impact on South Dakota's economy and has allowed nearly every sector of our state's economy to thrive in ways that would have never been possible without our homegrown industry,” Jensen said.

White adds that he is confident this program will catch on in other states.

“I know this program will be successful, and I believe it will venture out into other states,” White said. “Consumers are the same everywhere we go all across the nation. They want choices.”

“We're on the cusp of something really big, and once again, South Dakota's going to innovate in this area and the blender pump initiative's going to be one of them,” Even said.