Md. opens first ethanol fuel station

Officials yesterday unveiled Maryland's first state-owned ethanol fuel station at a government office complex in midtown Baltimore, touting the economic and environmental benefits of alternative energy.

The new station provides state-owned vehicles with E85 fuel, a mixture of 85 percent ethanol and 15 percent unleaded gasoline.

Pure ethanol is made by processing agricultural products, usually corn. The biodegradable substance is then generally mixed with a percentage of gasoline.

Ethanol-enriched fuel comprised about 3 percent of all fuel sold in the United States last year, according to the Ethanol Promotion and Information Council, a Nebraska-based group. Most new cars can run on gasoline with 10 percent ethanol content, while only flexible- fuel vehicles can use mixtures of 85 percent ethanol content.

Maryland owns 500 such vehicles, said Michael Li, a spokesman with the Maryland Energy Administration.

Seventy-five percent of the vehicles purchased by the state every year are E85-compatible or compatible with some other alternative fuel, Li said.

At yesterday's ceremony, Gov. Robert L. Ehrlich Jr. and U.S. Department of Energy Secretary Samuel W. Bodman praised renewable fuel as a step toward gaining independence from foreign oil sources.

The United States imports about two thirds of its petroleum, the crude oil from which gasoline is made, according to data provided by Ehrlich's office.

America will not remain a superpower unless it gets to energy independence some time in the future, Ehrlich told a crowd gathered outside a state office building on West Preston Street, where the E85 fueling station now operates.

Ehrlich also hopes the ethanol will power Maryland's farming economy.

According to a 15-month study by the Maryland Agricultural Commission in June, alternative fuels are predicted to open a new market for Maryland farmers who are struggling to turn profits with traditional crops.

According to the report, ethanol and biodiesel fuels can enhance the market for some of Maryland's agricultural products and byproducts, help diversify current production, and help offset increasing energy prices.

Unlike ethanol, biodiesel works only in diesel engines and oil home-heating systems.

Made largely from soybean oil, biodiesel has made tremendous headway in Maryland. In June, the state's first biodiesel plant opened in Berlin. Owned by the Cropper Oil & Gas Co., the plant can produce 2 million gallons of the fuel each year.

The agricultural commission report suggests Maryland legislators encourage further inroads into the alternative fuel industry. It recommends laws that would ban certain gasoline additives, require all state vehicles to use alternative fuels, provide tax credits for biofuel users and grant loans and other assistance to farmers who want to begin contributing to the biofuel industry.

Farmers are empowered in the state of Maryland, Ehrlich said yesterday.

The state expects to open two more E85 stations, one in College Park and another in Annapolis.

While the state will continue to integrate ethanol-mixed fuel with its fleet of vehicles, it could be more difficult convincing the average consumer to begin using the product.

Wan Kang, who owns a Citgo station on West Street in Annapolis, sells only about 20 gallons of ethanol-mixed fuel per day at his E85 pump. He sells about 1,500 gallons of traditional fuel daily.

Kang attributes the lack of interest in the ethanol-based fuel to the price: $4.10 per gallon.

About three weeks ago, the price was much lower at $2.95 per gallon, cheaper than traditional fuel. At that time, Kang sold about 200 gallons per day.

When it was cheaper, it sold, he said.

Ashley Bowen, a clerk at a Chevron station in Fort Meade, expects ethanol fuel prices to go back down.

It's supposed to be about 15 percent cheaper than regular gas, she said of the E85 fuel she sells at the Chevron.

We're starting to get more and more regular customers; we have two or three a day, Bowen said.

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