ATC FLEET SEMINAR

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ATC FLEET SEMINAR

• Presentation by
• Jill Hamilton, President
• Sustainable Energy Strategies, Inc.
• Jill.sesi_at_cox.net
• 703-322-4484

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Overview

• National Ethanol Issues RFS
• Regional E10 Situation
• Regional E85 Program
• Contact Info

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What is RFS?

• Energy bill eliminated Oxygenate requirement
• Replaced it with a RFS
• Program to displace 10 of US petroleum use with
  renewables by 2014
• Congress did not include an MTBE liability
  waiver, creating a demand for ethanol and
  biodiesel

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What do that mean for

• Production
• Yield of Corn
• Economic Impact
• Energy Security

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Production

• What Impact will RFS mean in terms of production
  needs?
• RFS requires 8 billion gallons of ethanol
  annually by 2012.
• Our current capacity is 3.6 billion gal/day
• In 2004, ethanol industry produced 3.4 billion
  gal/day
• This was up 100 from 2002

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Corn Yield

• We will need 5.5 billion bu of corn by 2014 based
  on 2005 yields
• Yields are projected to increased from 2.9
  gal/bu3.36 by 2014
• Corn for ethanol is expected to increase from 15
  to 40 of market share

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Economic Impact of RFS

• 6 billion to build 4.3 billion gal. capacity
• 70 billion on goods and services to get to 8
  million gallons of capacity
• 200 billion in indirect
• 43 billion in household income
• Create 234,840 new jobs

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Energy Security

• Will displace 2.13 billion bbl of crude oil by
  2012
• Will reduce US dollars to foreign producers by
  64.1 billion between 2005-2012
• Foreign oil sales to be reduced by an estimated
  62-67

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DC Baltimore Area
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E10 Has Arrived

• MD, VA and DC blend 100 E10
• Ethanol can be railed and barged into Baltimore
• All being used for the E10 market
• Being shipped to Virginia and DC

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Public E85 Stations

• Pentagon Citgo on Joyce Street
• Ft. Meade Chevron in Laurel
• Montgomery County in Gaithersburg
• Annapolis Citgo on West Street
• DC Fleet Maintenance on New Jersey Avenue

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E85 Increased Sales

• Tri-State Area 400,000 gallons of E85,
• 42 percent increase in E85 fuel sales from last
  year
• 06 to be over 500,000

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Promotion of E85

• Dispenser Signage
• Highway Road Signs
• Targeted Coupon Program
• Radio Advertising

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Characteristics

• Octane E85 100-plus octane (as high as 105)
• Lower heating value (27 less energy)
• Non-toxic, pleasant smell
• Handling treat same as gasoline (blended with
  gasoline)
• Dispensing Aluminum replace with stainless
  steel, nickel plated components, 1 micron filter

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Highway Road Signs
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Before and After Dispenser
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Coupon

• We had targeted 6600 vehicle drivers
• Mailed a sample to 2200
• Poor response to coupon
• But, incredible response to lower price of E85
  vs. gasoline so the promotion did impact
  consumers!

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WRNR

• Two months of tag lines (250 promos)
• Ethanol Minutes (66)
• Gas give-aways (60)
• On-site radio spot
• Two hours of gas sold at 1.03

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WRNR Advertising

• Picture of 103.1 day.

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Customers that heard the E85 AD
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E85 Sign
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WHATS AHEAD IN 2006

• Baltimore Station Opening
• UMD - College Park Contract Signed
• Continued Marketing and Advertising
• GM Live Green Go Yellow Trailer
• Looking for partner to do another radio ad
• Continue to support OEMs
• Seeking potential E85 locations

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Resources

• MD Grain Producers marylandgrain.com
• National Ethanol Vehicle Coalition
• 573-635-8590/ E85fuel.com
• National Corn Growers Association
  202-628-7001
• Sustainable Energy Strategies, Inc
  703-322-4484