Wal-Mart May Start Selling Ethanol
Thursday June 1, 2006
Wondering where you can fill up on ethanol? How about Wal-Mart? The world’s largest retailer is exploring the idea of selling ethanol made from corn at the 383 gas stations it operates in the United States, according to a company spokesperson.
The news surfaced after a meeting in Washington, DC, last week, where Wal-Mart brought together a group of alternative fuel experts from industry, government and academia to discuss how the company could develop a network to supply ethanol to gas stations located at its Wal-Mart and Sam’s Clubs stores.
Rising gasoline prices have made ethanol a hot topic as consumers and the federal government alike look for cost-effective alternatives to petroleum-based fuels, so Wal-Mart’s sudden interest in ethanol could be both a savvy marketing move and an extension of the environmental plan the retailer launched in 2005.
After being slammed repeatedly by critics over the past few years for its environmental and labor practices, Wal-Mart unveiled an environmental plan last October designed to increase energy efficiency, reduce waste, and cut greenhouse gas emissions across all of its operations.
“As one of the largest companies in the world, with an expanding global presence, environmental problems are our problems,” said Wal-Mart CEO Lee Scott in a speech he gave to employees. Scott said Wal-Mart wants to be a “good steward for the environment” and eventually to achieve the goals of producing zero waste and using only renewable energy.
Back to the ethanol issue, Wal-Mart stopped short of making an announcement about its plans, but the possibility that Wal-Mart may start selling ethanol energized corn farmers, who said the retailer’s entry into the ethanol market would provide a huge boost to the industry.
Wal-Mart is exploring the viability of selling E85, a blend of 85 percent ethanol and 15 percent unleaded gasoline, but it costs about $100,000 to install each E85 pump. Those costs are only partially offset by tax credits--up to $30,000 for each filling station.
According to an article in The Wall Street Journal, there are currently about 600 filling stations in the United States that are equipped to dispense ethanol, out of a total of roughly 170,000 filling stations nationwide. So far, automobile manufacturers have been unwilling to increase production of so-called flex-fuel vehicles that can run on either E85 or gasoline, because there are not enough filling stations to supply them with ethanol.
If Wal-Mart begins to offer E85 ethanol at all of its facilities, automakers may decide to put more flex-fuel vehicles on the road, which could be a win for the economy and the environment.
The news surfaced after a meeting in Washington, DC, last week, where Wal-Mart brought together a group of alternative fuel experts from industry, government and academia to discuss how the company could develop a network to supply ethanol to gas stations located at its Wal-Mart and Sam’s Clubs stores.
Rising gasoline prices have made ethanol a hot topic as consumers and the federal government alike look for cost-effective alternatives to petroleum-based fuels, so Wal-Mart’s sudden interest in ethanol could be both a savvy marketing move and an extension of the environmental plan the retailer launched in 2005.
After being slammed repeatedly by critics over the past few years for its environmental and labor practices, Wal-Mart unveiled an environmental plan last October designed to increase energy efficiency, reduce waste, and cut greenhouse gas emissions across all of its operations.
“As one of the largest companies in the world, with an expanding global presence, environmental problems are our problems,” said Wal-Mart CEO Lee Scott in a speech he gave to employees. Scott said Wal-Mart wants to be a “good steward for the environment” and eventually to achieve the goals of producing zero waste and using only renewable energy.
Back to the ethanol issue, Wal-Mart stopped short of making an announcement about its plans, but the possibility that Wal-Mart may start selling ethanol energized corn farmers, who said the retailer’s entry into the ethanol market would provide a huge boost to the industry.
Wal-Mart is exploring the viability of selling E85, a blend of 85 percent ethanol and 15 percent unleaded gasoline, but it costs about $100,000 to install each E85 pump. Those costs are only partially offset by tax credits--up to $30,000 for each filling station.
According to an article in The Wall Street Journal, there are currently about 600 filling stations in the United States that are equipped to dispense ethanol, out of a total of roughly 170,000 filling stations nationwide. So far, automobile manufacturers have been unwilling to increase production of so-called flex-fuel vehicles that can run on either E85 or gasoline, because there are not enough filling stations to supply them with ethanol.
If Wal-Mart begins to offer E85 ethanol at all of its facilities, automakers may decide to put more flex-fuel vehicles on the road, which could be a win for the economy and the environment.
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