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CHS offers E15 tank program to Cenex fuel retailers

CHS will help its Cenex branded locations meet consumer demand for E15 by covering a significant portion of the costs to purchase and install E15 storage tanks. Several Cenex locations are expected to install tanks and offer E15 this fall and next spring.

CHS, the country’s leading farmer-owned cooperative, has announced a new program that will help its Cenex branded locations meet consumer demand for an E15 ethanol blend. CHS will cover a significant portion of each location’s cost to purchase and install an additional storage tank for the purpose of offering E15.

About three dozen Cenex locations already offer E15, and CHS expects that another one or two dozen locations will participate in the Cenex Tank Program this fall and next spring. These stores are primarily located in Iowa, Minnesota and North Dakota, and some will install tanks very soon, says Doug Dorfman, CHS vice president, refined fuels.

Participating Cenex locations will be advertising the E15 blend, with some stores holding promotional events and/or grand opening. The program will be offered to 1,400 Cenex retailers in 19 states, Dorfman adds.

The Cenex network was among the first in the country to offer mid-level ethanol blends and has achieved significant increases in ethanol sales over the last five years, Dorfman says. The CHS renewable fuels marketing group expects that the overall market for ethanol will be 14.2 billion gallons by the end of 2014, up significantly from 10.9 billion gallons sold in 2009. Most of this growth is attributed to E10 requirements.

Cenex locations offering E15 are paying close attention to UL-approved tanks as well as the decals and other labeling required by EPA to offer higher ethanol blends, Dorfman says.

Feedback from CHS member owners and farmers has been very positive, Dorfman says. The Cenex Tank Program shows the cooperative’s support for biofuels. “We know who our owners are and are pleased to find another home for each bushel of corn,” he adds.

A long-time, global marketer of ethanol and distillers dried grains with solubles (DDGS), CHS also produces ethanol at a recently acquired plant in Rochelle, Ill.

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