NextEnergy offers biofuel incentives to gas stations

NextEnergy has received a $150,000 Biofuels Infrastructure Incentive Grant from the State of Michigan Department of Labor and Economic Growth – Energy Office. The agency will be awarding grants to gas stations for new or converted delivery systems of E85 or B20 fuel.

Funding is available at three levels, none to exceed 50% of total project cost. The incentive for the installation of a new E85—85% ethanol—pump cannot exceed $12,000, and for a new B20—20% biofuel—pump, the incentive cannot exceed $4,000. The conversion of an existing pump to either fuel blend can net an incentive of up to $3,000. NextEnergy’s Dan Radomski says that because ethanol is an alcohol, many components of E85 pumps must be made out of non-corrosive metals such as stainless steel, hence their higher installation cost.

Criteria for selection include distance from other biofuel stations, proximity to interstate highways, established fleet relationships and promotion plan. Grant applications are due December 15, 2006. More information can be found at NextEnergy’s web site.

Source: Dan Radomski, NextEnergy
Writer: Kelli B. Kavanaugh