AUSTIN, Texas -- Many drivers are uneducated when it comes to biofuels, according to a newly released consumer survey commissioned by Pavilion Technologies and conducted by Harris Interactive. Despite a surge in production and government support, only a fraction of adult drivers in the United States (5%) currently use biofuels such as an ethanol-blend fuel or biodiesel. Education and availability prove to be stumbling blocks on the road to making ethanol a market staple.
The survey found that not only do drivers lack awareness about biofuels, but also [image-nocss] many are misinformed on the subject; 44% of drivers agreed that they do not understand the difference between biofuels and conventional gasoline. One in four drivers who do not use a biofuel (25%) indicated that they do not know what it is.
The overall survey results suggest that many consumers are not aware thataccording to Pavilionethanol is cheaper and better for the environment than traditional gasoline and that many cars on the road today can run on ethanol blends without modification.
There has been tremendous innovation within the ethanol industry and manufacturers are using leading-edge technologies to produce more energy-efficient ethanol than ever before, said Matt Tormollen, chief marketing officer for Pavilion, Austin, Texas. The results of this survey demonstrate the critical need to make consumers aware of the benefits of ethanoland then to actually make those alternatives availablein order to ensure the new supply meets demand at the local pump.
Some 57% of drivers are not sure whether biofuels are more, less, or equally as expensive as traditional gasoline or diesel fuel. Like traditional gasoline, ethanol-blend prices fluctuate and vary from region to region; however, at the time of this release, a nonscientific sampling of fuel stations across the U.S. found E85, a blend of 85% ethanol and 15% gasoline, priced lower or the same as regular unleaded gasoline, said Pavilion. In some areas, E85 was as much as cents 30 per gallon less than regular unleaded, it added.
And 57% of drivers who do not use a biofuel say it is because they do not think their car can run on it. Ethanol-blended fuels are approved under the warranties of all auto manufacturers marketing vehicles in the United States. Any gasoline-powered car manufactured in the United States after 1982 can run on a 10% ethanol/90% gasoline blend, or E10. More than six million flexible fuel vehicles (FFVs) currently on the road in the United States can use E85. Seventeen million more FFVs are expected on the road this year. Furthermore, any diesel vehicle or diesel engine can run using biodiesel.
Nearly half (47%) of drivers who do not use biofuels say they do not know where to buy them. According to the U.S. Department of Energy, most gasoline pumps in America do not carry ethanol-blended gasoline today, making it inaccessible for most consumers. While the exact number of stations that carry some blend of ethanol is unclear, the Renewable Fuels Association indicates fewer than 1,200 retail gas stations, or 1% of U.S. gas stations, offer E85.
Of drivers who currently do not use biofuels, most (95%) indicated that they could be encouraged to make the switch. When asked what would encourage them to start using a biofuel in their vehicle, the most common response (72%) was a lower price than conventional gasoline or diesel fuel. Convenience was the second most cited response, as about six in 10 (61%) said that they would switch to biofuels if they were sold at their local station; however, proximity is critical: 63% of drivers overall indicated that they would not be willing to drive farther to a station that sells biofuels.
Drivers who do not currently use biofuels also weighed in with a variety of other responses, most notably: about six in 10 (59%) cited the desire to reduce U.S. dependence on foreign oil and nearly half (48%) would switch if they were offered a tax credit or other financial incentive from the government. In addition, despite the fact that three out of four drivers (75%) agreed that they typically opt for the cheapest solution when purchasing fuel, 47% indicated that they would pay a premium price for biofuels if they were proven to be better for the environment than conventional gasoline.
Pavilion Technologies' model-based software drives profitability for leading manufacturers like Cemex, Glacial Lakes Energy, NOVA Chemicals, Nestl a, SABIC Europe, TOTAL Petrochemicals, and VeraSun Energy.
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