DECATUR, Ill. -- Motor fuel made up mostly of ethanol is unlikely to catch on anytime soon, even as gasoline containing smaller amounts of the corn-derived product becomes ever more widely available, Archer Daniels Midland Co. executives said, according to a Chicago Tribune report.
The Decatur-based agribusiness companythe world's largest producer of ethanolsaid it foresees rapid growth in the market for gasoline blended with 10%, 15% or even 20% concentrations of ethanol, but slower acceptance of E85 (85% ethanol, 15% gasoline), its executives said [image-nocss] at a conference with Wall Street analysts in Chicago on Wednesday.
"Our big focus is on the blend market," said Ed Harjhausen, a senior vice president at ADM.
While acceptance of blended gasoline is improving, some 63% sold in the U.S. is unblended, which represents "enormous potential" for ADM to expand its market, he said. "We think the refining industry will just soak up the ethanol."
Still, the market for E85 motor fuel remains in its "infancy," he said. "Certain people in the petroleum industry are not going to embrace it."
The best hope for expanding its distribution to consumers lies with independent fuel retailers who see E85 as a niche product giving them a competitive advantage over rival gas stations that refuse to carry it, he added, the report said.
Click here to access the ADM webcast.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.