They’re cleaner-burning. They’re renewable. And now there’s another attribute for biofuels. They’re a competitive tool against “big box” fuel sellers.
Roger Guzman saw sales steadily decline at his Evergreen Mountain Market filling station after a nearby Safeway installed gas pumps and began selling discounted fuel.
“I was really bitter at first,” he said. “But then I realized that the public wants cheap gas. So I had to swallow hard and figure out how to compete with them.”
The revelation hit Guzman like a ton of fermented corn.
Give the customers something they can’t get at Safeway, he decided. Namely the alternative fuels E85, a corn-based ethanol product, and B20, a blend of conventional diesel and biodiesel made from crop oils.
As part of the initiative by Gov. Bill Ritter to increase the number of biofuel outlets in Colorado, Guzman installed E85 and B20 pumps in March.
He has been impressed with the results. Total fuel sales at his station were up 66 percent in April compared with the same month last year.
“There are a lot of reasons, but probably the biggest reason is biofuels,” Guzman said.
Customers are equally happy. With Colorado’s average gasoline price at a record $3.23 for a gallon of regular unleaded Monday, and national prices also establishing a new high of $3.07, the price for E85 at Evergreen Mountain Market was an eye- catching $2.56.
E85, a blend of 85 percent ethanol and 15 percent gasoline, is made for “flex fuel” vehicles that have engines specially designed to burn ethanol.
Even factoring in the 5 percent to 20 percent decline in fuel mileage that motorists get from ethanol compared with gasoline, the cost of Guzman’s E85 was attractive compared with his $3.19 price for regular gas.
The ability to purchase biofuels was a key reason Tyler Reseigh bought a new flex-fuel Chevrolet Tahoe.
He pumped his first tank of E85 on Monday at Guzman’s station.
“It’s definitely worth a try,” said Reseigh, a mortgage banker from Genesee. “I just hope (E85 pumps) start popping up more frequently.”
That’s the goal of the Governor’s Energy Office, which plans to have 51 biofuel pumps open by the end of the year, more than tripling the number from the beginning of 2006.
They’re not designed to help traditional stations compete against fuel-selling grocers and big-box retailers, but that may be one of the results, said Tom Plant, director of the state energy office.
“Clearly, it’s a competitive market,” he said. “Independents are looking for any angle to become more competitive.”
The Governor’s Biofuels Coalition is hosting a June 13 workshop at the National Renewable Energy Laboratory in Golden to acquaint retail gas-station owners, fleet managers and government officials with ethanol and biodiesel pump installations.
Guzman and customer Joe Davis traded comments about biofuels Monday as Davis pumped $94 worth of B20 into his Ford pickup.
The blend of 20 percent biodiesel and 80 percent conventional diesel was priced at $3.15 a gallon, one cent cheaper than Guzman’s regular diesel.
“Not much difference in price, but I think I get a little better mileage with biodiesel,” said Davis, a tile contractor from Bailey. “Plus I get to do something good for the environment. Why not use it?”
Staff writer Steve Raabe can be reached at 303-954-1948 or sraabe@denverpost.com.
