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On October 25, the largest ethanol production facility in Georgia, Southwest Georgia Ethanol LLC announced that it was temporarily halting production, stating that higher corn prices have made continued production of the fuel financially difficult. Production at the facility may not resume until next year’s corn harvest. On the same day, global petroleum giant BP announced that it was canceling plans to move forward with the establishment of a commercial-scale cellulosic ethanol plant in Highlands County, Fla., stating in a press release that it is in the best interest of the company to look for “more attractive projects.” The proposed plant, announced in 2008, would have produced 36 million gallons of cellulosic ethanol annually.
For many in this country, it is difficult to remember a time when ethanol was not a fuel staple, blended into commercial gasoline. Gasohol, a blend of gasoline and 10 percent ethanol, first emerged in the United States fuels marketplace in the 1970s. And in 2005, ethanol became practically ubiquitous after Congress passed the Energy Policy Act, which established minimum requirements on how many gallons of biofuel (typically ethanol) must be blended into the U.S. fuel supply.
However, the ongoing drought crisis currently impacting much of the United States, as well as looming economic insecurity are putting the continued growth of U.S. ethanol production in jeopardy. Currently 40 percent of the U.S. corn crop goes into the production of ethanol. However, with experts predicting an imminent global food crisis, and with the price of corn skyrocketing, it is making decreasing sense to divert this scarce resource to the biofuels industry.
Regardless of the various benefits associated with blending ethanol into the U.S. commercial fuel supply, it is unlikely if corn prices remain at current levels that the fuel will remain economically viable. According to a recent Bloomberg report, ethanol production has not been profitable for over a year. In part because of this, experts are predicting U.S. ethanol production will fall by 10 percent in 2013, reducing exports and necessitating an increase in imports.
Many lawmakers, ranchers and industry leaders recently turned to the Environmental Protection Agency in an attempt to temporarily halt the ethanol fuel blending mandate and protect the dwindling U.S. corn supply for livestock husbandry and other uses. To date, 200 members of the U.S. House of Representatives and the governors of eight corn-producing states have formally petitioned the EPA to relax the Renewable Fuels Standard. The EPA denied the request.
Within the convenience and fuel retail industries, both NACS and SIGMA have weighed in as against issuing a waiver of the standard this year, but in favor of lowering the RFS in future years. The organizations co-authored a letter to the EPA, urging the agency to reevaluate the ethanol mandate. Although NACS and SIGMA are opposed to waiving the RFS at this time, as this would disrupt current business deals already in place for 2013, the organizations acknowledge that the issues currently impacting the ethanol industry are likely to repeat themselves over the next few years and must thus be dealt with at the federal level. “While we do not support a decision that would disrupt the market this year, we believe strongly that the renewable fuels requirements in future years should be evaluated and the market be given as much flexibility as possible,” said John Eichberger, NACS Vice President of Government Relations.
However, despite the economic realities currently facing the ethanol industry, there are many who stand staunchly in favor of the RFS. The two groups most prominently represented among RFS proponents are corn growers and environmentalists. The RFS has been a blessing to corn growers who now have a reliable market for their product. Year after year it is guaranteed that 40 percent of their crop will be purchased by ethanol producers. Many have credited the RFS with protecting the economies of corn producing states like Iowa and Nebraska from the full ravages of the economic recession.
In addition to the economic benefits it provides to corn producing states, those in favor of keeping the ethanol mandate argue in favor of the fuel’s environmental benefits as well. As a renewable fuel source made from corn, grass, algae and other biomass, ethanol is an attractive alternative to fossil fuels often imported from unstable foreign nations. “Renewable fuel is more important than ever—driving economic growth in communities that need it, improving our nation’s energy security and attracting millions in new technology dollars to invest in America’s future,” explains the ethanol promoting coalition Fuels America.
Regardless of where one stands on ethanol and the possibility of at least temporarily waiving the RFS, it is clear that fuel retailers must be prepared for changes in the cost, availability and consumer demand for the biofuel. As long as the Midwest remains under drought conditions and the cost of corn remains high, it is likely to be impossible for the ethanol industry to retain the status quo.
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GE and Peake Fuel Solutions, an affiliate of Chesapeake Energy Corporation, recently launched the CNG In A Box™ system, which allows easier adoption of compressed natural gas refueling options for both large- and small-scale retailers. The solution was unveiled at the 2012 NACS show in October.
Natural gas is an abundant, reliable and cleaner-burning source of energy for consumers and commercial users alike. In addition, a vehicle fleet operator that uses natural gas for fueling instead of gasoline can save about 40 percent in fuel costs.
The CNG In A Box system is a plug-and-play on-site fueling solution that comes with everything retailers need to add low-cost natural gas fuel to their operations quickly and simply. This GE ecomagination™ qualified refueling option provides an easy, lower-cost fueling experience for consumers and a higher-margin solution for facility operators compared to gasoline or diesel.
“In collaboration with Peake Fuel Solutions, GE is developing infrastructure solutions to accelerate the adoption of natural gas as a transportation fuel,” said Mike Hosford, General Manager of Unconventional Resources for GE Oil & Gas. “The CNG In A Box system is a unique fueling solution that brings together some of the best innovation from across GE to help fleet owners and everyday drivers realize the benefits of cleaner burning, abundant, more affordable natural gas.”
“After working extensively with GE to develop the CNG In A Box system, we are excited to unveil it,” said Kent Wilkinson, Vice President of Natural Gas Ventures for Chesapeake. “Combining Peake Fuel Solutions’ natural gas expertise and GE’s breadth of cross-industry technology capabilities will advance the use of abundant and affordable natural gas fueling solutions.”
The CNG In A Box system compresses natural gas from a pipeline into CNG on-site at a traditional automotive fueling station or industrial location. CNG-powered vehicles such as taxis, buses or small trucks, as well as individual consumer vehicles, can then refill their tanks using a dispenser with the same look and feel as a traditional diesel or gasoline dispenser.
The CNG In A Box system’s 8-foot by 20-foot container is easy to ship and maintain due to its compact design. Its modular and novel design makes it plug-and-play on-site. In addition, these alternative fuel dispensers feature PCI-compliant pay-at-the-pump technology for a familiar and secure fueling experience, using the same dispensers and payment terminal interfaces as ordinary petroleum dispensers.
“Natural gas is produced at a relatively lower cost and is cleaner burning than gasoline or diesel fuel. Natural gas vehicles can show an emissions reduction of up to 80 percent compared to gasoline vehicles,” said GE ecomagination Vice President Mark Vachon. “Through ecomagination, we’ll continue to deliver to the industry innovative solutions that deliver both great economics and environmental performance. And the CNG In A Box system exemplifies this commitment.”
To learn more about the CNG In A Box system, visit www.ge.com. To learn more about ecomagination, GE’s commitment to imagine and build innovative solutions to today’s environmental challenges while at the same time driving economic growth, visit www.ecomagination.com.
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Authentix, the global leaders in authentication, recently announced that the U.S. Patent and Trademark office and the Mexican Institute of Industrial Property have issued patents covering the use of violanthrones, Authentix’ newest class of Quantum Photonic Markers for use in petroleum products. This new technology will offer increased stability and accuracy for determining dilution or the presence of adulterants in the petroleum products being tested. This latest advance in fuel testing solutions will help both brand owners and governments further enhance efforts in their fight against fuel adulteration, fuel smuggling and fuel tax evasion.
The combination of these new markers with Authentix’ LSX family of portable devices offers a robust platform for fighting fuel-related crimes. Utilizing these devices enables the detection of very low levels of adulteration and dilution, which means more fuel-related crimes can be stopped and legal cases against fuel tax criminals can be pursued with the highest level of confidence.
“The introduction of these markers is an evolution of Authentix’ well-established Quantum Photonic Marker suite,” said Jeff Conroy, Vice President of Technology Development at Authentix. “With this new suite of markers, we can offer clients more options for marking lubricants, solvents and oils in addition to Authentix’ extensive gasoline and diesel marking capabilities.”
These new proprietary fuel markers are part of Authentix’ ever growing toolkit for their industry-leading fuel authentication programs, making their solutions sets the most comprehensive in the industry. Currently these Authentix markers are being used by a major fuel brand in Europe to detect fuel dilution, and the markers are in trials in several other countries for both dilution and adulteration detection.
Authentix, the global leaders in authentication, provides brand protection, excise tax recovery, and supply chain security solutions to governments and Fortune 500 companies around the world. Authentix helps safeguard clients in the oil and gas, pharmaceutical and consumer goods industries from counterfeiting, smuggling and adulteration issues. In addition, Authentix protects the currency of multiple industry-leading central banks. For more information about the company, visit www.authentix.com.
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Lighting is the single largest user of electricity in the United States. New, patented technology from LUXADD allows for easy retrofitting of older, less efficient fluorescent lighting systems to T5, the leader in energy efficiency and lighting quality. The T5 saves up to 73 percent on lighting energy and reduces a company’s carbon footprint up to 60 percent with just one simple “snap.” It’s as simple as changing a light bulb.
LUXADD’S Express T5 Retrofit Kit for T12 and T8 pays for itself in one year, through labor and energy savings. The Retrofit Kit reduces lighting energy bills by up to 73 percent every year.
LUXADD offers the only linear fluorescent lighting conversion adapter specifically designed for the U.S. and Canadian markets. It is designed for all residential and commercial applications. In addition, LUXADD is “Made in the USA,” in effort to create new “green” jobs, to promote a sustainable supply chain and to ensure quality control.
Rising energy costs directly impact all buildings in the U.S. retail and service sectors. Collectively, these buildings currently use 149 billion kWh (or 508 trillion Btu) of site electricity (electricity consumed within the building) each year. Electricity is used for a variety of different purposes, but the majority (59 percent) is being used for lighting.
Further exemplifying the need for retailers to implement more energy efficient lighting in their buildings, new standards established by the U.S. Department of Energy necessitate that most of the standard fluorescent lights in millions of buildings across the country will soon need to be replaced. This is because DOE regulations will eliminate the most common T12 tubes. It is estimated that the eventual replacement of 500 million T12 tubes will produce an annual saving of $10 billion in electricity costs nationwide. LUXADD is the only U.S. manufacturer of the new Express T5 Retrofit Kit Series, designed to meet new federal laws mandating replacement of standard T12 fluorescent light tubes, as well as the elective replacement of T8 tubes.
Finally, LUXADD not only instantly improves lighting energy efficiency, but it can also help retailers to save on air conditioning electricity costs, as a great deal of energy is spent cooling buildings due to heat produced by old-technology fluorescent lighting. Overall, the energy savings generated with LUXADD can reach 80 percent.
LUXADD is a leading lighting solution provider based in Miami, Fla. and is comprised of experts dedicated to developing new technologies that improve energy efficiency in lighting, the single largest consumer of electricity worldwide. Environmental concerns, escalating energy costs and highly competitive economic conditions have created strong demand for energy efficient products that will help to conserve energy, save money and promote a healthy environment. LUXADD meets this need with products that dramatically reduce electricity consumption instantly while producing higher quality light. For more information, visit www.luxadd.com.
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By Lucas Witman
As the season of giving approaches, retailers across the nation are readying themselves to participate in a slew of philanthropic activities, from collecting canned food and toys for families in need to raising money for important causes. However, within the convenience store industry, giving back has truly become a year round commitment, no longer reserved only for the holidays.
Surveying charitable works engaged in over the past few months alone, it is difficult to find a major convenience store chain that has not been involved in some act of philanthropy. This fall, TravelCenters of America held its third annual Band Together for Saint Christopher’s Fund event, raising over $278,000 for the nonprofit that supports healthcare for struggling professional drivers. Kangaroo Express’ summer-long Salute Our Troops fundraising event raised $3.17 million for the USO, the Wounded Warrior Project and six state-based military support organizations. And in August, Speedway pledged to raise $1 million over the next three years for the Children’s Hospital Foundation.
In addition to these large scale chain-wide contributions to national charities, many convenience retailers are also showing their commitments to the individual communities in which they operate. For example, by participating in Chevron’s Fuel Your School Program, individual Chevron retailers in a number of cities throughout the country have been able to raise valuable funds for local classroom projects. Citgo recently announced that the company will invest as much as $1.5 million in the Corpus Christi, Texas community of Hillcrest in an effort to support local nonprofit organizations that provide necessary services to area residents. And an event in Maryland recently hosted by Jiffy Mart brought over 200 people together to raise money for Carroll County Food Sunday, an invaluable local charity.
In addition to these convenience and fuel retail chains, Circle K, Wawa, 7-Eleven, Roadrunner Markets, Quiktrip, BP, Kwik Shop and many others have committed themselves to various charitable enterprises.
There are a number of reasons why convenience retailers may be compelled to participate in philanthropic projects. “We have an obligation to the communities we serve to be a responsible retailer,” explains QuikTrip on the company’s website. Similarly, 7-Eleven explains on its website, “7-Eleven stores are part of the neighborhood and committed to serving the changing needs of our guests. Being a good neighbor and corporate citizen is part of doing business at 7-Eleven, and we are proud of our long history of supporting our neighborhoods in meaningful ways through our community relations initiatives.”
In addition to generally fostering beneficence in the communities in which their stores operate, some convenience store chains are specifically engaging in projects designed to benefit their industry over the long term. This is the case with Chevron’s involvement in Fuel Your School, a program created to raise money for schools in California, Louisiana, Mississippi, Oregon, Texas and Utah. “Educating today’s students remains critical to our country’s future, but America’s schools face significant challenges and have fallen behind in science, technology, engineering and math,” said Dale Walsh, president of Chevron Americas Products. “Fuel Your School provides teachers with essential tools and resources that help students learn, explore and get excited about STEM education to help prepare them for the jobs of tomorrow.” In promoting education in these communities, Chevron may be directly contributing to the future workforce of the company.
Still, there may be another important reason why many in the convenience and fuel retail industries find it beneficial to devote themselves to charitable causes: philanthropy drives sales. Retail sales experts advise that a growing number of consumers today feel that it is important to patronize aspirational, socially responsible businesses. Contemporary consumers are simply more likely to spend money at a store if they feel somehow gratified in doing so. By showing customers that the business is dedicated to the overall well being of its community, retailers can potentially draw in a brand new customer base, equally committed to that community. And by demonstrating commitment to a particular charity, the business draws in customers who are also partial to that cause.
While the U.S. economy continues to suffer this holiday season, research shows that giving to charitable causes remains important to many consumers. In one recent survey, four out of five consumers questioned said that they plan to donate to a charity during this year’s giving season.
“While there is still uncertainty about where the economy is headed, Americans are showing a willingness to give more to the causes they care about,” said Sarah Libbey, president of Fidelity Charitable. “Americans have always had a strong commitment to philanthropy.”
For retailers struggling to attract customers in an anemic economic climate, commitment to charity could make the difference in driving sales this holiday season. Today’s retailers have the opportunity to make valuable contributions to their communities while at the same time promoting their business to a socially conscious customer base.
*photo courtesy of North Carolina National Guard
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