E85 (adjusted for lower energy content) once again cheaper than mid-grade gasoline

[HoosierRon]

National Averages:

Unleaded Regular: $3.100/gallon
Unleaded Mid-grade: $3.291/gallon
Unleaded Premium: $3.411/gallon

Diesel: $3.441/gallon

E85 pump price: $2.500/gallon
E85 adjusted: $3.290

http://www.aaafuelgaugereport.com/

[HoosierRon]

Regular gasoline is up to $3.101.
Mid-grade gasoline is up to $3.293.
E85 adjusted for energy content is down to $3.287.

http://www.aaafuelgaugereport.com/

[spaz]

so basicly they have to be losing money in order for it to be worth it economically for consumers

[Bornfromparents]

Originally Posted by spaz

so basicly they have to be losing money in order for it to be worth it economically for consumers

No the adjustment is to show the consumer the price per energy content
since E85 is lower energy than gas, so 2.50 per galon of E85 is equal to spending for midgrade gas. So you are spending a little more to support the home team

[HoosierRon]

Originally Posted by spaz

so basicly they have to be losing money in order for it to be worth it economically for consumers

No. The price of E85 does not reflect the price blenders need to charge to make a profit. Rather, the price of E85 simply tracks the price of gasoline. They can charge the (adjusted) equivalent of mid-grade gasoline and still sell all they can make. A month ago, when they were charging (adjusted) less than regular gasoline is going for today, the blenders were not losing money. The adjusted price was $2.95/gallon a month ago. They could drop their price (adjusted) to below regular gasoline and still make a profit, but why should they if they can sell out at the current price?

In several states, (www.e85prices.com) blenders are selling E85 for way less (adjusted) than regular gasoline. They are not going out of business. Rather, they simply are responding to what the market will bear.

[Slowrider5]

e85 was as cheap as 1.99 last week at the pump in some places of Indianapolis. I wish my 04 Sierra was a flex-fuel engine.

[HoosierRon]

November 24, 2007:

Unleaded: $3.083
E85 (adjusted): $3.273
Mid-grade: $3.274

[susanbe]

Hoosier Ron,

I have found your posts about biofuels to be very informative and often over my head. I found you through my efforts at researching cellulosic biofuel plants which finally brought me to this forum. My interest in cellulosic plants is inspired by the recent news that our community is going to get an experimental 50 million gallon per year plant in our industrial park on the beautiful Tellico Lake here in Vonore, TN.

Don't get me wrong, I am all for it if it is environmentally safe and makes good economical sense, but not if it is going to use 4 gallons of water to make 1 gallon of ethanol as in a grain plant. Where can I get facts like that on cellulosic plants? DO cellulosic plants emit a foul odor? DO cellulosic plants have polluted water as dangerous and as difficult to handle as that of a grain plant? What are the emissions into the air? Into the water? Into the soil?

Can you tell me where to get the answers? It seems there is little information since there are less than six operating in the US.

Sorry to use the forum for this kind of question, but time is ticking away. Thanks so much. susanbe

[HoosierRon]

I am not sure that there are any cellulosic ethanol plants operating in the U.S. at this time. Nine have been announced. Several of those are under construction. There are ethanol companies that have "pilot programs" going, but "pilot" means that they are producing 1 million gallons per year, rather than 100 million gallons.

I'll keep an eye out for specific information. I do know that cellulosic ethanol plants use far less water than corn ethanol plants. I have never read that any ethanol plant emits a foul odor, although I have read where some emit a mild not unpleasant smell. I would strongly suspect that the smell can be controlled if the plant is put in a populated area.

[susanbe]

Thanks for your quick response. I hope you are correct about the odor. Are you pro cellulosic and against the grain ethanol? What are the pros and cons of each?

[HoosierRon]

Personally I am pro-anything-that-gets-us-off-OPEC-oil. The good thing about corn ethanol is that it is here and it is now and it is the cheapest form or ethanol you can get in the U.S. The downside is that the U.S. can only grown so much corn, and only so much of it can go to ethanol production. So there is a limit to how much corn ethanol we can make.

The good thing about cellulosic ethanol is that it uses less energy and less water. Also, we have way more cellulosic material so we can make way more cellulosic ethanol. Better yet, cellulose is everywhere, so you can put cellulosic ethanol plants in every state. The downside is that at this time, it is expensive to make. However, this is changing rapidly. Within 5 years, you will see an explosion of cellulosic ethanol plants. To see how quickly things are changing, see my post here.

[HoosierRon]

November 29, 2007:

Unleaded: $3.096
E85 (adjusted): $3.254
Mid-grade: $3.287

[treekiller]

Originally Posted by Slowrider5

e85 was as cheap as 1.99 last week at the pump in some places of Indianapolis. I wish my 04 Sierra was a flex-fuel engine.

Oh but it IS my friend... http://www.motorworksperformance.com/p/DSFLX7193

with the predator tune it uses the same logic as the factory flex fuel versions, except.. it optimizes the E85 spark and fuel map to give more HP/Torque so your actual adjusted MPG is much better NICE EH!