Ethanol, biodiesel coming to area
New pumps at two gas stations expected by fall
Sutter County will soon be a stop along the alternative fuel highway.
Gas stations in Yuba City and Live Oak are in contract with alternative and renewable fuel proprietor DMC Green to install biodiesel pumps, E85 ethanol pumps and electric vehicle chargers later this year. Both sites are in the permitting process and should be in operation this fall, said Andy McCargar, director of market development and promotion.
"That's going to be a great location for us," McCargar said. "We're really focusing on the major travel corridors."
DMC is in contract with 50 additional sites, including Chico, Redding and Williams, that should begin installation within the next two months.
Availability and consistency of alternative fuel locations is important for those who depend on that fuel source, McCargar said. It dictates what travel paths they take, so the more stations in existence, the better.
L&R Gas and Food at the intersection of Highway 99 and Ash Street in Live Oak has a car wash and mini-mart along with several gas pumps.
Manager Bali Randhawa said he and his son, who also works at the station, often get inquiries about alternative fuels.
"Hopefully, we are going to have good business here," he said.
The Arco station at 1332 Bogue Road in Yuba City has several gasoline and diesel pumps in addition to an AM/ PM market. The owner was not available for comment.
Through the agreement with DMC, the dealers will eventually own the equipment. The pumps are their investment and income is based on fuel sales. McCargar would not disclose financial details about the arrangement.
"Every additional product they can offer at their location provides a mean for new customer flow," he said. "And all of us tend to be creatures of habit, so if a customer has one flex-fuel vehicle and they get in the habit of going there to fuel that, it's likely they will bring their other vehicles there as well."
DMC estimates demand and sales based on flex-fuel vehicle registration in the area, as well as sales of existing petroleum products.
The market is constantly growing as the federal government mandates more of its vehicles must be flex-fuel, which run on gasoline or a mixture of up to 85 percent ethanol, and more consumers turn to alternative fuel vehicles, McCargar said. It is also anticipated that auto vehicle manufacturers may be required to produce 100 percent of their vehicles with flex-fuel capability.
Alternative fuels are typically about 40 cents per gallon cheaper than regular unleaded gasoline, McCargar said. They also offer better performance, higher horsepower and greater octane.
