California Advanced Energy Coalition urges for 15% ethanol blend in state

Oct 9, 2012 - The California Advanced Energy Coalition (CAEC) is calling for an increase in the ethanol blending cap in California to 15% from the current 10%, as using more ethanol would actually lower fuel prices.

In a statement on Monday CAEC explained that wholesale prices per gallon of ethanol were over USD 1 (EUR 0.77) lower than the price of gasoline. It urged the California Air Resources Board (CARB) to boost the blending limit to allow E15 on the market.

E15 includes 15% ethanol and 85% petrol. In mid-June the US Environmental Protection Agency (EPA) gave the final nod to the sale of the blend for 2001 and newer motor vehicles. The move was a result of over six years of tests which cost the US Department of Energy more than USD 42 million. "The testing data has been done. What is now needed is to add the EPA's new data to California's compliance model," commented biofuel maker Aemetis Inc's (PINK:AMTX) chairman and CEO Eric McAfee.

CAEC added that due to the 10% ethanol blending cap biofuel plants in California were working quite below their capacity. The organisation calculates that at full capacity the state can produce some 200 million gallons (757 million litres) of ethanol. CAEC also noted that after EPA gave the go-ahead to E15, Ford (NYSE:F) and General Motors (NYSE:GM) had approved the fuel for use in all their new cars.

Choose your newsletter by Renewables Now. Join for free!