Fuels

ICM, Crescent Oil, POET Form Joint Venture

Collaborating on renewable fuels; goal is more than 1,000 stations
COLWICH, Kansas -- ICM Inc., Crescent Oil Co. and POET have formed a joint venture called NewGen Fuel. NewGen Fuel is focused on delivering new-generation fuels to American consumers, produced by American companies and derived from American agricultural resources grown and harvested in the United States.

The January 28 grand opening of the Wanamaker fuel station in Topeka, Kansas, is home to one of the first "Renewable Fuel" retail blender pump stations in the United States implemented in conjunction with a privately owned site branded Conoco. (Click here for previous CSP Daily news coverage.)

The Topeka site in addition to several other sites will enable NewGen Fuel to further support the infrastructure development of renewable fuels through a series of stations in Kansas,
including Coffeyville and Wichita.

Colwich, Kansas-based NewGen Fuel's goal is to provide this unique fuel retail model at more than 1,000 locations nationwide through affiliations with other energy leaders within the oil industry, including privately owned fuel stations flying the Conoco brand, among others. In addition to celebrating the grand opening of NewGen Fuel's "Renewable Fuel" retail station in Topeka, consumers who visited the Wanamaker fuel station saw a special fuel promotion offering discount pricing on all fuel products including the midlevel blends and regular unleaded fuel on January 28.

The establishment of NewGen Fuel re-affirms the commitment among industry leaders, government and other public/private institutions to advance the new energy economy by providing consumer choice, creating jobs at home and reducing dependence on foreign oil, the companies said. The formation of this collaborative joint venture recognizes the critical importance of resuscitating our nation's economy, and the companies said they hope to create hundreds of direct and indirect jobs related to the implementation of NewGen Fuel's retail station model. New jobs will be created in construction, plant maintenance, transportation and operations among others. Additionally, the "Renewable Fuel" retail station model will stimulate renewable fuels infrastructure development, and create jobs so that capabilities exist to generate tax revenue to finance essential public needs.

NewGen Fuel will provide owners of flex-fuel vehicles (FFVs) the freedom to choose domestically produced midrange ethanol blends, through Crescent Oil's fuel distributorship and POET's supply of ethanol. Commonly considered midlevel (intermediate) blends include E15 (15% ethanol, 85% gasoline) and E20 (20% ethanol, 80% gasoline). Midrange ethanol blends offer FFV owners a viable alternative to standard unleaded fuel or E85. Currently, ethanol blends above 10% ethanol are approved for use only in FFVs.

The U.S. Environmental Protection Agency (EPA), however, has recently indicated consideration of potentially approving a waiver for E15 and E20 fuel blends in order to meet the requirements mandated under the federal Renewable Fuel Standard (RFS). NewGen Fuel will also focus its efforts to support the commercialization of second generation biofuels including cellulosic ethanol and other renewable motor fuels as they become commercially viable.

"Our 'Renewable Fuel' retail station model will demonstrate our broader effort to Americanize and improve our energy production capabilities, position Kansas and the rest of the U.S. for economic growth," said Alan Goodnight, president of NewGen Fuel.

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