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Case Study: Zarco 66 forced to become Zarco USA

The story of Zarco 66, Inc. (now Zarco USA), a Kansas-based former ConocoPhillips(Phillips 66) franchisee, clearly illustrates how Big Oil uses the multiple grade requirement to squeeze out competition from renewable fuels. For many years, Zarco 66 offered E85 at its fueling station in Lawrence, Kansas. One of the station’s fuel tanks contained regular gasoline (E10) and a second tank contained ethanol rather than premium gasoline. At that time, Zarco 66’s agreement with Phillips 66 did not require Zarco 66 to sell premium gasoline. Zarco 66 offered customers E85 by blending the appropriate mixture of gasoline and ethanol straight at the pump using blender pump technology. Because only certain vehicles can use E85, the oil industry likely viewed this alternative fuel as a gimmick—one that posed no real threat to the industry’s monopoly. But shortly after Zarco 66 became the first fueling station in the nation to offer E15—a fuel that can be used in any light-duty vehicle manufactured since 2001—the oil giant suddenly changed its tune. Phillips 66 quickly threatened to terminate Zarco 66’s franchise agreement and charge Zarco 66 hundreds of thousands of dollars in penalties unless Zarco 66 started offering premium gasoline. But Zarco 66 didn’t want to sell premium; the station’s customers wanted E15 and E85. The only way Zarco 66 could offer premium gasoline would be to replace the ethanol housed in the second underground storage tank with premium, thus eliminating the station’s ability to offer E15 or E85. Zarco 66 was given at ultimatum by the oil company, stop selling E-15 and E-85 and replace it with premium or face penalties. As a true believer in consumer choice and renewable fuels, Zarco 66 continued to look for options that would allow the station to sell E15. In the end, however, the company was forced out of its 28-year franchise relationship with Phillips 66 and forced to repay more than $300,000 to the franchisor. This resulted in significant financial damages to Zarco 66, which has since re-branded itself as Zarco USA.[1] Today, E85, E15 and other ethanol blends are offered at Zarco USA’s Kansas locations.

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Ethanol production isn’t to blame for rising food prices

 

Brett Duffy owns and operates Em J’s Pizza and Much More along with his wife, Carrie, in Woodland, Mich. Sarah McGarry owns and manages C and R Restaurant in Lake Odessa, Mich.

 

By Brett Duffy and Sarah McGarry

 

recent guest column on MLive ignores the benefits of the Renewable Fuel Standard (RFS) for Michigan. The author is also misled when it comes to the facts about food prices and ethanol.
We’re local restaurant owners, and we’ve experienced the economic benefits of ethanol production both for our businesses and communities. As a result of our local ethanol plant, we’ve seen more jobs, more investment in our local economy and business growth in every sector from construction to restaurants.
The RFS also drives down the price of gasoline. Ethanol is significantly cheaper than gasoline, and blending it with our gasoline means that consumers all over Michigan save money every time they fill up at the pump.
Mr. DeBano repeats the claim of Big Oil companies that say ethanol is to blame for rising food prices, but the facts don’t support this claim. As restaurant owners, food costs are a daily concern for us. However, according to the USDA, only 11.6 cents of every dollar in food costs can be attributed to the cost of the raw food itself. And that includes all of the raw food, not just corn. It takes 18 cents worth of corn to raise a pound of beef, and when you buy a box of Corn Flakes, just 6 cents of the cost is from corn.
Last year, corn prices dropped precipitously from $6.97 per bushel to $4.31 per bushel in December, a 38-percent drop, yet food prices continued to rise. When we talk about food prices going up, the real culprit isn’t corn prices. The USDA reports that the biggest factors in food prices are marketing and transportation costs, which includes fuel. So it’s no surprise that Big Oil companies are so intent on shifting the blame.
Claims that ethanol diverts corn from food show a lack of understanding of modern agriculture and all of the advancements in the industry. We live and work in rural areas, and we see firsthand the ingenuity and hard work that goes into Michigan’s corn farms and ethanol plants.
When the ethanol industry was born, farmers met the new demand by increasing production of corn. The new corn that’s grown for ethanol wasn’t grown at all prior to the RFS and we still have the same amount of corn available for food. If you’ve been near a farm lately, you know that farming is a high-tech business now. Thanks to new technology, Michigan corn growers nearly doubled corn production since 1950, using less land and fewer resources per bushel.

 

In addition, one-third of every bushel of corn that’s used to make ethanol gets made into high quality animal feed that helps Michigan’s livestock producers feed their animals.

 

Today’s ethanol producers make high-octane, clean-burning fuel that helps reduce emissions and clean up our air and water. In contrast, the oil spill in Kalamazoo and the disaster in the Gulf have made the environmental dangers of relying on oil for our transportation needs all too clear.
Relying on oil means sending billions of dollars overseas every year, often to countries that are hostile to America. Making more of our own fuel here in Michigan, from corn grown by our local farmers, not only boosts our economy, it helps keep our soldiers safe by making us more energy independent.

 

The RFS protects consumers, grows our economy and supports local businesses like ours. Repealing it, like Mr. DeBano suggests, would be a serious mistake for Michigan.

 

Source…

 

 

New TV Ad Exposes Saudi Oil Money That Is Bankrolling Smear Campaign Against America’s Renewable Fuels

Saudi Oil Money Helps Finance Attacks on American Ethanol, IRS Records Show

 

The “American” Petroleum Institute (API) has launched a massive TV campaign and lobbying blitz to convince the U.S. EPA and/or Congress to reduce the amount of clean, renewable fuel in gasoline while increasing the percentage of oil-based fuel at the pump. If successful, it would result in a significant increase in foreign oil imports, forcing Americans to spend an addition $2.5 billion on foreign oil this year alone.

 

API is funded by its member companies – including Saudi Arabia’s state owned national oil company, Saudi Aramco.

 

 While API doesn’t include Saudi Aramco on its membership list, that list does include “Saudi Refining, Inc.” Saudi Refining, Inc. is a subsidiary of Saudi Aramco which has the same address in Houston as Saudi Aramco. API’s membership list hyperlinks Saudi Refining, Inc to Saudi Aramco’s U.S. website.

 

 While API curiously does not disclose the membership of its Board of Directors online, it is required to disclose this in publicly available IRS forms. These documents reveal that the CEO of Saudi Refining, Tofiq Al-Gabsani, was on API’s board of directors in 2010 and 2011.

 

 Al-Gabsani is also a registered foreign agent for the Kingdom of Saudi Arabia.

 

 Newly released filings for 2012 show that Mr. Al-Gabsani has been replaced by the CEO of another Saudi Aramco subsidiary. Nabeel Amudi is the CEO of Aramco Services.3 And in 2009, the seat was held by a former Aramco Services CEO, Ali A Abuali.

 

 Given that the parent company, Saudi Aramco, is by some measures the most valuable corporation in the world (roughly $7 trillion, according to the Financial Times) they can certainly afford to give generously to API, demand a seat on the board, etc.

 

According to the Washington Post, the top dues paying members of API pay roughly $20 million each year. Other dues-paying members of API (and by extension, funders of their ads) include the state owned oil companies from Brazil and Norway.

 

Letter: Don’t blame ethanol

  • Greg Krissek, CEO, Kansas Corn Growers Association
  • Posted Monday, April 7, 2014

To the editor:

Kansas University biologist Chip Taylor has brought ethanol to the top of his list of enemies to monarch butterflies in an article published on March 31. Over the years, Taylor has blamed global warming, drought and improved weed control for declining monarch populations. Now, he claims ethanol production is forcing wild prairie into crop production, destroying butterfly habitat. That is simply not true.

The ethanol industry continues to produce at consistent levels in 2014, yet last week’s USDA 2014 prospective plantings report showed a decrease of 3.7 million acres of corn to be planted in the U.S.

Many factors influence a farmer’s planting decisions, including market prices and weather.  In Kansas, we farm about 20 million acres of land producing mostly corn, wheat, soybeans and sorghum. Acreages shift between crops, but the amount of Kansas farmland remains consistent.

Farmers should be recognized for the substantial amount of natural habitat on their farms. Instead of blaming ethanol and agriculture for loss of habitat for monarch butterflies, perhaps the loss of farmland and natural habitat to urban growth should be a greater concern.

Agriculture continues to produce more feed, food and energy from a stable or declining number of acres to meet the needs of a growing population. Ethanol has been blamed for causing many issues depending on the philosophy of a respective author – and the facts continue to disprove the basis of such attacks. That is true here as well.  I wonder where next year’s blame will be placed.

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Time to Focus on Educating the Consumer

By: Tyler Harris at FarmProgress.com

If you’ve driven through Lawrence, Paola, Ottawa, or Olathe, there’s a chance you’ve seen one of the nine fueling stations with signs sporting palm trees and a sunset indicating an island paradise. Just next to the signature logo, Zarco; Discover the Oasis, is the interstate shield insignia which signifies E15 or 15% ethanol blend, fuel. In fact, Zarco USA was the first retailer in the country to offer E15 at one of the Lawrence locations in 2012.

Owner Scott Zaremba says he is past the initial challenges of requirements, infrastructure and supply. Now, it’s important to create demand by educating consumers. Most of the drivers who can use E15 don’t realize they can, he says. “Consumers don’t know what it is, other than it smells when they get it on them,” he says. “We have not educated the consumer yet, and we are working on that.”

Since it was first sold in 2012, there have been several false rumors flying around about E15, Zaremba notes. This includes AAA’s claim that E15 can damage vehicles – a statement Zaremba says is false and somewhat baffling, considering AAA is an automotive group that provides roadside assistance for a fee, and wouldn’t benefit directly from making such a statement.

“I believe [AAA] did it for their own PR, not for the consumer,” he says. “Somehow the world thinks they are the authority, because they have done a great job of advertising themselves.”

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E15 retailer is part salesman, part educator, all cheerleader

Source: Amanda Peterka, E&E reporter • Posted: Tuesday, April 9, 2013

Scott Zaremba wants Kansas to know that he fills up his 2001 Chevrolet pickup truck with 15 percent ethanol.

The owner of Zarco 66, a small fuel retailer based in the eastern half of the state, Zaremba has slapped a large decal displaying the common name for the fuel, “E15,” to the hood of the truck.

“I’m a rolling ad,” Zaremba of Lawrence, Kan., said.

In the fuel world, where petroleum marketers are still shying away from selling the ethanol blend, Zaremba is also somewhat of an anomaly. Last July, he became the first retailer in the country to pump E15 into cars — including his own — and has since expanded E15 to all eight of his stations throughout Kansas.

E15 is the common name for a fuel blend of 15 percent ethanol and 85 percent gasoline. U.S. EPA last year issued final approval for it to be sold in the marketplace to cars with model years 2001 and newer as a means of expanding the amount of ethanol in the market.

But E15 has so far penetrated the market — which is dominated by gasoline containing 10 percent ethanol — at a snail’s pace, largely due to the engine damage and liability concerns raised by auto manufacturers and major oil companies.

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EPA should keep ethanol fuel level

Chances are there’s ethanol in the gas tank of your car or truck, put there every time you refuel. It’s blended into gasoline at the ratio of 10 percent ethanol to 90 percent gasoline.

While that doesn’t sound like a lot, ethanol made from corn helps fuel the local farm and rural economies in East Central Indiana and much of the rural Midwest. …

Ethanol is a key component in the local economy, and should remain so, but it faces a challenge because the Environmental Protection Agency might scale back the amount of the biofuel blended with gasoline.

A decision is likely later this year, but a deadline to submit comments on the issue is Jan. 28.

Gasoline use in the nation has been flat or falling as people reduce the amount of miles they drive and vehicles become more fuel efficient. That has forced renewable fuel producers such as ethanol to hit a so-called “blend wall,” and EPA to weigh reducing the amount of ethanol blended with gasoline, the Renewable Fuel Standard.

Should that happen, it could have dire consequences for local farmers and the ethanol industry. …

Burning ethanol emits less carbon dioxide than gasoline, which is why it has been a centerpiece of the government’s plan to cut greenhouse gases. The flip side, however, is that more farmers have plowed up land to grow corn, and that releases carbon dioxide. Development is under way to develop other sources for ethanol, not just corn.

Ethanol has reduced the price of gasoline between 80 cents and $1 a gallon and saves about $39.8 billion annually. It also makes this country less dependent on foreign oil sources. …

— The Star Press, Muncie, Ind., Jan. 19

EPA caves to the petroleum industry, could cost taxpayers

Friday, December 6, 2013 – A World in our Backyard by Laura Sesana

December 6, 2013—The petroleum industry’s renewed campaign against Congressionally mandated increasing levels of ethanol in gasoline appears to be working. The result, however—EPA’s proposal to reduce ethanol requirements for 2014—could cost taxpayers and secure petroleum’s hold on the U.S. economy.

Fuel for Thought,” a campaign sponsored by the American Petroleum Institute (API), the U.S.’s leading petroleum association, is calling for a repeal of the Renewable Fuel Standard (RFS). Television and print ads warn that higher levels of ethanol in transportation fuel could void car warranties, lead to car damage and even trigger higher food costs.

While the renewable fuel industry, environmentalists and others have criticized the campaign as misleading, it seems to be working in Washington.

Developed in 2005 by the Environmental Protection Agency (EPA) with the collaboration of renewable fuel producers, refineries, and other stakeholders, the RFS program requires transportation fuel sold in the U.S to contain minimum volume of renewable fuel that increases every year.

RFS aims to reduce petroleum imports, increase use of homegrown renewable fuels, reduce foreign oil dependency and encourage the development of the national renewable fuels industry.

Most gasoline currently sold in the U.S. already contains some ethanol, but the exact percentage varies by region, according to the U.S. Energy Information Administration (EIA). Generally, gasoline does not have more than 10 percent ethanol. Gasoline with 10 percent ethanol is known as E10 and according to EIA, E10 is safe to use in all gasoline vehicles.

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The importance of the renewable fuel standard

By SEN. MAZIE HIRONO | 11/10/13 9:04 PM EST

In the summer of 2012, Hawaii and the surrounding Pacific Ocean played host to the 23rd biannual Rim of the Pacific naval exercise. Last year’s RIMPAC was the world’s largest and most comprehensive maritime exercise, with more than 22 countries participating from across the Asia-Pacific region.

While RIMPAC 2012 was notable for its size and scope, it was also notable for something else — it was the first time the U.S. Navy operated ships and other platforms with a blend consisting of 50 percent renewable fuel.

Dubbed the Great Green Fleet demonstration, the Navy’s exercise proved that biofuels are a viable alternative to fossil fuels. In fact, the Navy even refueled a Royal Australian Navy helicopter that had been using conventional fuels with biofuel aboard the USS Nimitz. The helicopter performed perfectly after the refueling, and on July 19, the United States and Australia signed an agreement to work together to advance the use of biofuels.

For the Navy, developing alternatives to fossil fuels isn’t just about fighting climate change — though that’s an important side benefit. Biofuels will also play a much more practical role in the Navy’s fuel mix, boosting our energy security and supporting the U.S. economy.

The economic case for biofuels is especially compelling. From fiscal year 2005 through fiscal year 2012, the U.S. military reduced its annual oil consumption from 122 million barrels to 107.6 million barrels — a 12 percent decrease. Over that same time period, however, the military’s spending on fuel rose from $7.4 billion to $16.8 billion — a 130 percent increase.

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E15 analysis shows no issues with engine durability, maintenance

By Holly Jessen | October 14, 2013

A recently released National Renewable Energy Laboratory report concluded that there are no meaningful differences between E10 and E15 on engine durability, emissions and other categories. In addition, the 44-page report pointed out that the data does not support the conclusions of controversial Coordinating Research Council study that suggested that engines operating on E15 could experience engine failure.

Bob Dinneen, president and CEO of the Renewable Fuels Association, pointed out that the CRC study is the centerpiece in the petroleum industry’s fight against E15. Lawmakers have been given the false idea that the study is the only one conducted on E15. The NREL report exposes flaws in the methodology of the CRC study and others, which are often cited by the American Petroleum Institute. “It’s time for Big Oil to stop using actors to scare people about E15,” he said. “It’s time they start paying attention to the overwhelming data and real world experience demonstrating the efficacy of E15.”

The NREL study reviewed 43 studies on E15 use in vehicles model year 2001 and newer but did not include vehicles the U.S. EPA has not approved for using E15, such as pre-2001 vehicles as well as boats, snowmobiles, motorcycles and small off-road engines. The conclusion was that the data showed no evidence of deterioration in engine durability or maintenance issues for either E15 or E20 in comparison to straight gas and E10. (When that fuel was part of the testing.) Studies that examined materials compatibility testing showed no evidence that E15 causes increased metal corrosion or elastomer swell when compared to E10. And, emission studies revealed that engine control units can compensate adequately for the lower energy and higher oxygen content of E15.

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Spreading the word about E15 and American Fuels

by  in Farm Industry News Blog

In July 2012, Scott Zaremba was the country’s first fuel retailer to offer E15. At the time, his company was known as Zarco 66, a Phillips 66 fuel retailer. Within the last few weeks, however, Zaremba’s company has been renamed Zarco USA. The Kansas retailer severed ties with the Phillips 66 brand after Phillips’ policies placed restrictions on how he could sell E15. Zaremba chose to go independent and created his own brand, “American Fuels.” This includes ethanol and biodiesel blends that the Kansas retailer sources from within 100 miles of his eight Kansas City-area fuel stations. There are about 10 biofuel plants in this area. This, combined, with Zarco USA’s efforts, will help customers be able to “fuel local.”

Sales of E15 are going well, but Zaremba acknowledges the need to continue to educate consumers about what E15 is and how it may be used (in vehicle models 2001 and newer). The Kansas retailer has launched a big advertising campaign for his American Fuels brand, using television, radio, newspaper and social media. He also is spreading the word to organizations, such as the Farm Bureau and local Chambers of Commerce.

Zaremba has received positive feedback about E15, some consumers adding that they have been getting better mileage because E15 is an octane point higher than regular unleaded. This has been particularly the case with vehicle models 2010 and 2013, Zaremba says. “It’s encouraging to see that we’re going to have more vehicles that can take advantage of E15,” he adds.

Zaremba has been receiving several calls from other fuel retailers about E15 and how they should structure their facilities to add the blend to their product mix. However, they often face restrictions in their retail contracts from major oil companies that are concerned about ethanol and biodiesel blends biting into their market share, Zaremba says.

More retailer bill of rights legislation across the country would help retailers be able to offer other fuel products, including ethanol and biodiesel blends, for their customers. A wider variety of fuel products would also help retailers improve their margins, Zaremba suggests.

Campaign against fossil fuels growing, says study

A campaign to persuade investors to take their money out of the fossil fuel sector is growing faster than any previous divestment campaign and could cause significant damage to coal, oil and gas companies, according to a study from the University of Oxford.

The report compares the current fossil fuel divestment campaign, which has attracted 41 institutions since 2010, with those against tobacco, apartheid in South Africa, armaments, gambling and pornography. It concludes that the direct financial impact of such campaigns on share prices or the ability to raise funds is small but the reputational damage can still have major financial consequences.

“Stigmatisation poses a far-reaching threat to fossil fuel companies – any direct impacts of divestment pale in comparison,” said Ben Caldecott, a research fellow at the University of Oxford‘s Smith School of Enterprise and the Environment, and an author of the report. “In every case we reviewed, divestment campaigns were successful in lobbying for restrictive legislation.”

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Americans Want More E15, Other Ethanol Blends, New Poll Says

By Stephen Edelstein at www.greencarreports.com

Policymakers may be fighting over it, but consumers seem to like E15. At least, that’s what a new poll of 1,211 Americans from advocacy group Fuels America says. Of those people, 82 percent said they supported having E15–a blend of 15 percent ethanol and 85 percent gasoline–at their local gas stations. And 76 percent said they wouldn’t mind seeing blends with even more ethanol, such as E20 and E30.

E15 gasoline was approved for sale by the EPA last year, and is currently offered at 40 stations in nine states, Fuels America said.

Lack of availability

According to the poll, consumers don’t want to see anything hindering the spread of E15. Fully 79 percent of participants said any oil industry effort to block the availability of E15 would be bad for consumers. Fuels America, which sponsored the research, calls itself an organization “committed to protecting America’s Renewable Fuel Standard and promoting the benefits of all types of renewable fuel already growing in America.”

Big farming vs Big Oil?

Earlier this month, The Federal Trade Commission was asked to look into “reports of oil companies pressing independent gas stations to sell premium gasoline in addition to regular gasoline.” The two U.S. Senators who made the request, Amy Klobuchar [D-MN] and Chuck Grassley [R-IA], represent agricultural states that produce most of the corn used to make ethanol. Gasoline stations usually only have two tanks; with one tank going to regular gasoline, they would have to choose between offering E15 and premium. Expensive blender pumps, required to adjust the mixture between the current E10 (good for all carsbuilt since 1990) and the new E15 may make station owners less likely to sell the new fuel anyway.

Bad for cars?

In January 2011, the EPA approved E15 for use in cars built in 2001 or later, but there is still much controversy over whether the fuel causes long term damage. Last December, the AAA came out against E15, saying that only five percent of light-duty vehicles on U.S. roads were compatible with the fuel. Chrysler still hasn’t approved any of its new models for E15. “E15 is the most tested fuel in history and is absolutely safe for every car model year 2001 or after,” Fuels America spokesman Bobby Likis said in a statement.

36 billion gallons by 2022

One organization that has historically been enthusiastic about ethanol is Congress. Under the 2007 Energy Independence and Security Act, the U.S. is required to use 36 billion gallons of ethanol and other renewable fuels by 2022. The political intrigue surrounding E15 probably won’t go away any time soon. Domestically refined ethanol is needed to meet the mandated goals for renewablefuel consumption, but has been the subject of much criticism over its impact on food production, land use, water consumption, and overall carbon emissions.

20 Facts about Ethanol:

Listen here.

New Analysis: Ethanol Cutting Crude Oil, Gasoline Prices

Ethanol.org – The Renewable Fuels Association

(September 23, 2013) WASHINGTON — Consumers are saving $0.50-1.50 per gallon on gasoline as a result of increased ethanol production under the Renewable Fuel Standard (RFS), according to a new analysis by renowned energy economist Philip K. Verleger, who served as an advisor on energy issues to both the Ford and Carter administrations.

“The implication for world consumers is clear… [T]he US renewable fuels program has cut annual consumer expenditures in 2013 between $700 billion and $2.6 trillion,” writes Verleger in a short commentary available on pkverlegerllc.com. “This translates to consumers paying between $0.50 and $1.50 per gallon less for gasoline.” The commentary summarizes a more detailed analysis that was included in Verleger’s August Petroleum Economics Monthly newsletter.

Crude oil prices would be between $15-$40 per barrel higher today without the substantial volumes of ethanol that have been added to petroleum inventories since enactment of the RFS. According to the commentary, the RFS today has added “…the equivalent of Ecuador’s crude oil output to the world market at a time of extreme tightness.”

“Had Congress not raised the renewable fuels requirement, commercial crude oil inventories at the end of August would have dropped to 5.2 million barrels, a level two hundred million barrels lower than at any time since 1990,” Verleger writes. “The lower stocks would almost certainly have pushed prices higher. Crude oil today might easily sell at prices as high as or higher than in 2008. Preliminary econometric tests suggest the price at the end of August would have been $150 per barrel.”

 

Ethanol requirements good, not bad, for America’s economy, energy security

Last month, on August 13, the nation’s petroleum industry formally asked the Environmental Protection Agency to reduce federal requirements on the amount of ethanol that refiners must blend with gasoline. The request claimed that existing ethanol standards hurt the economy and damage car engines.

That critique has been around for years. But it doesn’t jibe with the facts. Indeed, Big Oil’s call to loosen the nation’s ethanol requirements is misguided.

Corn-based fuel has proven to be a clean-burning energy source. Its production creates jobs and reduces American dependence on foreign oil.

With carbon emissions at an all-time high, ethanol still offers one of the few workable and economically sound strategies for meeting the nation’s environmental goals.

Because we are now seeing a flagging demand for gasoline and an unexpected surplus in ethanol supplies, the current ethanol requirement will require refiners to produce fuel containing more than 10 percent ethanol — a blend known as “E10.”

Big Oil industry groups argue that a higher ratio of ethanol will harm most automobile engines and force drivers to bear new costs for repair and maintenance.

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E15 Pioneer Rebrands Stations

Kansas marketer Scott Zaremba, who was first to retail E15, a blend of 15%
ethanol and gasoline, has taken down the Phillips 66 signs this week and is
rebranding his eight Kansas City-area gas stations.

The process started Monday and all stations will sport his newly created
“American Fuels” brand by Friday, Zaremba told Oil Express. His company now goes
by Zarco USA, instead of Zarco 66.

Phillips’ policies forced him to rebrand, he said. The major only allowed him to
sell E15 under the canopy from the yellow-hosed flex-fuel dispenser, which would
restrict sales to flex-fuel vehicles.

Though some automakers say filling up with ethanol blends greater than 10% will
void their new vehicle warranties, the federal Environmental Protection Agency
has approved E15 for all light vehicles model years 2001 or newer.

Phillips also required Zaremba to sell premium gasoline and then jacked up the
price by 20cts to 40cts/gal above market, he said.

“I had to rebrand to bring the consumer E15,” Zaremba said, refusing to disclose
further details on what it cost to sever his retail branding relationship with
Phillips.

On Friday, Zaremba begins an ad campaign promoting his American Fuels brand;
red, white and blue logo; and corporate focus on renewable fuels using
television, radio, newspaper and social media.

At the station nearest his Lawrence, Kan., headquarters he will promote E15 at
$1.99/gal from 11:30 a.m. to 1 p.m. on Friday as part of his public awareness
pitch for the fuel. E15 is currently running 2cts/gal under E10, which is
$3.479/gal, said Zaremba.

–Donna Harris, dharris@opisnet.com

Copyright, Oil Price Information Service

ACE: Big Oil is forcing lower quality gasoline on the market

By American Coalition for Ethanol | September 16, 2013

Ron Lamberty, senior vice president of the American Coalition for Ethanol, is warning consumers that recent changes in fuel supplied to the Midwest by oil companies will reduce the quality of gasoline available in many states.

“If people notice that their gas doesn’t seem as good as it used to be, it’s because the gas isn’t as good as it used to be.” Lamberty says. “The ethanol is exactly the same as it was last week, last month, or last year – but on Sept. 16, the octane of gasoline just got much lower, however consumers will pay the same as before.”

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Record corn crop refutes critics, ethanol industry says

By Susanne Retka Schill | August 12, 2013

While the USDA lowered its corn crop estimates in its monthly supply/demand report, the ethanol industry is pointing out that it is still a record crop and demonstrates the weaknesses in the arguments from opponents of the renewable fuel standard (RFS). The Renewable Fuels Association pointed out that the 13.76 billion bushel crop is up 28 percent from last year and 5 percent larger than the previous record crop. The USDA’s projected national average yield of 154.4 bushels per acre would be the third-highest yield on record.

“Following the worst drought in 50 years, USDA is projecting that U.S. farmers will produce a record 13.8 billion bushels of corn this year and the third best yield, which is further proof the RFS is working and Congress should not repeal or reduce it,” said Brian Jennings, executive vice president for the American Coalition for Ethanol.  “The RFS provides an economic incentive for scientists and farmers to innovate and sustainably deliver more corn, enabling the total U.S. corn supply to reach 14.5 billion bushels this year and making room in the market for adequate and affordable food, feed, and fuel.  Since the RFS was originally enacted in 2005, these advancements have driven U.S. farmers to produce around 20 bushels more corn per acre than before.”

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Source: Ethanol Producer Magazine

Threats in Syria raises domestic fuel costs

As tensions grow in Syria, and the threat of conflict increases, our fuel costs domestically go up.

 

The price of oil is now the highest it has been in over a year and a half. The threat of conflict has worried Wall Street that oil trade in the region could be disrupted.

 

Our reliance on foreign oil is directly affecting our energy costs in America. At Zarco, we believe in an energy-independent nation. Our energy costs shouldn’t be affected by overseas conflicts. Domestic energy can solve the problem.

 

Send our soldiers overseas to protect the importing of oil can be avoided.

 

This is why we’ve changed to American Fuels. We want to make a difference – an energy revolution.

 

We believe that we can grow the economy, cut our energy costs, create jobs and provide a bright future for our children. With renewable fuels we can provide jobs for the American people, jobs that can’t be outsourced, cut down on greenhouse gas emissions, and decrease our dependence on foreign oil.

 

Choose American Fuels, and join the energy revolution.

 

 

Introducing American Fuels

Zarco USA is an energy-provider and has been for 45 years. We are a Kansas company and we are family owned and operated. We believe in an energy-independent nation and a country that thrives with innovation.

 

Zarco USA is one of the nation’s leaders in energy-independence and innovation, starting with a brand of fuels that represents our core values and our country. We call it American Fuels.

 

We work with local energy producers, farmers and innovators in the energy- transportation world to bring other sources of transportation energy to you, fueling the local economy.

 

We believe in a diversified market that allows consumers to have choices at the pump where innovation, the economy and the job market all thrive.

 

Ethanol and Bio-Diesel play a key role in our nation’s energy future and security. Zarco USA is at the forefront of the Renewable Fuels Standard and the future of transportation energy.

 

The Renewable Fuels Standards’ objective is to reduce our dependence on foreign oil, reduce greenhouse gas emmissions, and to provide economic opportunity across the country.

 

The renewable fuels industry supports hundreds of thousands of American jobs.* *US Department of Energy

 

America’s fuel supply has been from a single source for the better part of a century. It’s becoming more difficult to extract crude oil and it has become crucial to develop alternative sources of transportation energy.

 

Our country has spent billions on our military to secure foreign oil supplies. Henry Ford produced the first mass- produced automobile in the United States.

 

It was capable of running on ethanol or gasoline. His extraordinary vision is becoming a reality in the 21st century. It’s time to make a change.

 

These are the fuels that fuel American. These are American Fuels.

 

Join the energy revolution at Zarco USA.