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by Seth Teter

Record highs in U.S. ethanol production led to low prices at the gas pump in several states, but the impact likely went unnoticed by Ohio drivers.

The reason – Ohio has only one refueling station for E85, a blend of 85 percent ethanol and 15 percent gasoline, according to Sam Spofforth, executive director of the Central Ohio Clean Fuels Coalition (COCFC).

"The price for E85 now, on a wholesale basis, is significantly less than regular unleaded," Spofforth said.

While E85 has slightly less energy content than gasoline, it produces fewer emissions and has an octane rating of 105 which results in better performance, according to COCFC. But drivers haven’t been lining up at the state’s lone E85 pump located at a Hilliard Speedway in Franklin County.

According to Ruth Yarber, Speedway manager, the pump has not met expectations since it was installed in 2001, and E85 is typically the same price as regular unleaded gasoline at the station – that day almost $2.25 per gallon.

"A lot of people that buy it come and fill up drums for use back on the farm," she said.

Spofforth said Hilliard is not a good location for the pump and didn’t expect a price drop because of low consumer interest.

Ethanol prices have traditionally followed gasoline prices but have been lower in recent months, said Tadd Nicholson, director of programs for the Ohio Corn Growers Association.

Low E85 prices, which fell as much as 80 cents per gallon below gasoline, were recently reported in several states, and new data shows that the U.S. ethanol industry set a production record in February of 245,000 barrels per day.

Further bolstering U.S. ethanol production, the Chicago Board of Trade recently launched its ethanol futures contract.

"This is a huge boost to the ethanol industry and will be an excellent tool for managing price risk" said Chris Henney, OFBF director of agricultural ecology programs.

The challenge now is to increase the demand for ethanol, Nicholson said.

He said Ohio car dealers have not been using E85 as a selling point for vehicles with the flexible fuel systems needed to operate on the high ethanol blend.

"Ohio has 150,000 flex-fuel vehicles running around the state with no place to fill up," he said.

That could change with new legislation introduced earlier this month by Rep. Steve Reinhard, R-Bucyrus.

Aimed at establishing a biofuel infrastructure in Ohio, the bill promotes U.S. agricultural products while reducing dependence on foreign oil, Reinhard said.

Its provisions include tax credits for gas stations that install E85 fuel pumps and stations with ethanol blended gas sales that exceed 60 percent of regular gas sales.

It also establishes a grant program to fund the conversion of existing fuel pumps to biofuels and requires that half of all vehicles purchased for state agency fleets be able to operate on alternative fuels.

"Of course its going to be an environmentally-friendly bill, and it provides an outlet for more crops that are grown in Ohio," Reinhard said.

More Ohio corn growers will start looking at high fermentable hybrids, which are optimal for ethanol production, once ethanol plants in the state begin production, Nicholson said.

Greater Ohio Ethanol (GOE) will use 140,000 acres of high-fermentable Ohio corn for an ethanol plant the company is building in Lima, according to GOE President Greg Kruger. He said the facility, the first of seven GOE plans to build in Ohio and surrounding states, will use corn from this year’s crop but will not be in production for at least a year. The site for the next facility is anticipated to be in Pleasant Township in Seneca County.

"There's economic reasons and environmental reasons to want (ethanol)," Kruger said. "But the reality is that people resist change."

Nicholson said supply and demand will alternatively rise and fall until an infrastructure is established, but he expects continued growth in the industry.

"It’s nothing but optimism for corn growers," he said.

Caption: Ohio’s only E85 pump is located at 3760 Main St. in Hilliard.