Fuels

Ford, VeraSun Team Up on E85

Partnership will grow retail altfuel offering, awareness

DEARBORN, Mich. -- Ford Motor Co. has forged a partnership with VeraSun Energy Corp., a renewable energy company, to increase the number of E85 (a blend of 85% ethanol and 15% gasoline) retail fueling locations and raise awareness about the benefits of E85 use.

The partnership will concentrate on growing the E85 infrastructure in 2006. The initiative intends to convert existing fuel pumps to VeraSun's branded E85, called VE85, in existing retail outlets. Retail outlets and Ford dealerships will be asked to participate in the campaign. Ford and VersSun [image-nocss] will also launch a consumer awareness campaign to promote the benefits and use of E85.

The initiative will build upon a program implemented by Brookings, S.D.-based VeraSun earlier this year. It introduced VE85 in locations across eastern South Dakota. The company worked with retailers to provide consumers with convenient access to E85 pumps and launched a marketing campaign to increase consumer awareness.

Eastern South Dakota has served as a great location to launch VE85. We have been able to effectively communicate with the local consumers and raise awareness. Since we live and work here, we have been able to experience first hand the positive impact this has made on the community, said Don Endres, VeraSun CEO. With Ford coming on board and putting their influence behind E85 adoption, we believe we can significantly increase consumer awareness and fuel availability throughout the Midwest and beyond.

"Ford is working on innovative solutions to customer concerns over high gas prices and America's overdependence on foreign oil," said Ford Chairman and CEO, Bill Ford. "Ethanol is an innovative energy source straight from the heartland of America. Ford has produced flexible fuel vehicles [FFVs] for over a decade now, with more than a million on the road. Our introduction of four new modelsproducing up to 250,000 in 2006reinforces our commitment. Fueling infrastructure for our customers, however, is lagging. We look forward to partnering with VeraSun and encouraging retail fuel providers to incorporate E85 fuel options in their operations."

Only about 500 of the more than 180,000 fuel stations in the U.S. currently offer E85, Ford said. Ford and VeraSun plan to increase the number of stations offering E85, particularly in Midwest markets where ethanol availability is growing.

"Increasing FFV production and E85 use represent the best near-term solution to significantly reducing our dependence on foreign oil. The two greatest challenges facing greater E85 use are access to convenient fueling locations and a lack of consumer awareness," said Bill Honnef, vice president of sales and marketing for VeraSun. "Because [FFVs] can run on both gasoline and E85, most FFV owners are not aware they are driving an FFV and simply use gasoline. Our research indicates that nearly 70% of [FFV] owners are unaware they are driving one. With Ford as a partner, we believe we can make great strides in both areas."

Dearborn, Mich.-based Ford is offering four new models with the flexible fuel technology option for 2006: the Ford F-150, Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car.

Consumers can learn more about the benefits of E85 use, find E85 stations and determine if they own an FFV by visiting www.E85Fuel.com.

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