Although EV expansion is getting a lot of the attention right now, there are other future fuels that merit consideration. Here are three of them.
Federal and state funding for ethanol is plentiful and rising.
The U.S. Department of Agriculture has made $100 million in funding available to help transportation fueling and fuel distribution facilities make their equipment compatible with biofuels. According to Energy Marketers of America, $75 million of the funding is earmarked for fuel retailers, and 40% of that will be made available to businesses with less than 10 stations. Applications for grants are due Nov. 21, 2022.
States are also offering incentives. For example, Nebraska will allow a credit of 5 cents on each gallon of E15 sold and 8 cents per gallon of E25 or higher blends sold. Iowa’s cost-share grants help facilities upgrade or install new E85 or dual E15 and biodiesel infrastructure. In Kansas, an income tax credit is available for 40% of the total cost to install alternative fueling infrastructure.
According to a Convenience Matters podcast, global diesel supplies are low due to a drop in refining capacity. Demand is volatile and unpredictable for 2022-2023.
The economy depends on diesel trucks to transport goods, so high diesel prices will be passed on to customers. Additionally, the volatility is creating a market for renewable diesel, which is chemically identical to petroleum diesel and can be used to create biodiesel blends.
Hydrogen utilization also appears to be expanding. Werner Enterprises has signed a letter of intent to secure 500 hydrogen engines from Cummins. Gemini Motor Co. is planning to launch a fleet of autonomous hydrogen fuel cell trucks by 2025. And it’s worth noting that Dover Fueling Solutions has introduced a hydrogen dispenser designed to meet the needs of retail fuel operations.