The Business of Alternative Fuels
Scott Zaremba stands over his work site at Ninth and Iowa streets. Zaremba owns all of the area Zarco 66 gas stations, and purchased this site to build his ninth gas station. But something will be different about this station. Unlike the eight other stations Zaremba owns in Lawrence, Olathe, Paola and Ottawa, this one will sell only fuels featuring ethanol and biodiesel. It will be the first station in the world in which any consumer can fill their car with alternative fuels regardless of engine, and the first station in Lawrence offering high blends of ethanol and biodiesel.

“I have been in the fuel business for 40 years, and I really feel like this is the time for this,” Zaremba said. “The desire for people to use alternative fuels is there.”
Zaremba’s alternative fuel station is another example in the continuing trend of consumers choosing to purchase eco-friendly fuels such as cleaner burning ethanol and biodeisel. These fuels lower the effect on the environment and help reduce the United States’ dependency on foreign oil. According to the U.S. Department of Energy, 5,634 alternative fuel stations currently operate in the United States.
Ethanol is a type of fuel that can be mixed with unleaded gasoline and put in vehicles that burn unleaded fuel. It is made from corn and other agricultural products. Any vehicle that operates on unleaded fuel can use at least e10, which is 10 percent ethanol and 90 percent unleaded fuel. However, many new vehicles being produced can run on higher percentages of ethanol. Biodiesel is a mixture of common kitchen waste and chemicals such as methanol and potassium hydroxide. Biodiesel fuel can be used in any diesel engine, and is often mixed with regular diesel fuel in blends like b2 and b20 similar to ethanol.
Zaremba’s station will offer ethanol blends from e10 to e85 and biodiesel blends from b5 to b99. According to Zaremba, the prices of the ethanol and biodiesel blended fuels will reflect the current marketplace value of regular unleaded and diesel fuels, with the exception of the e85 ethanol blend. E85 will be considerably cheaper than standard unleaded fuel. As of July 2007, the last time data was collected, the U.S. Department of Energy reported that on average e85 cost $2.63 per gallon, while standard unleaded fuel cost $3.03 per gallon.
“We wanted to give everyone an opportunity to fill up at the station, so we decided to offer blends that could be put in any vehicle,” Zaremba said. “That way, if you have an older car you can still use the station.”
But the shift is not only present at the pump. At Crown Chevrolet, located at 34th and Iowa Streets, people are rushing in to get their vehicles that can run on e85 ethanol fuel.
“More and more people are asking specifically to purchase a vehicle that can run e85,” Thomas Jacobson, sales and leasing consultant for Crown Chevrolet said. “When they ask for that, they are pretty much dead set on that. There is no getting it out of their mind.”
General Motors, Chevrolet’s parent company, calls their vehicles that are able to operate on e85 “FlexFuel Vehicles.” GM offers 15 different FlexFuel vehicles, and it plans to manufacture more than 400,000 FlexFuel vehicles in 2007. General Motors offers their FlexFuel vehicles at no additional cost over the ones that cannot run on e85 fuel. Ford, who calls their vehicles “Ethanol Vehicles,” offers five different models.
Jacobson said he expected the desire for FlexFuel vehicles to grow as more stations that sold e85 were built.
“When you’ve got one station, there is going to be some interest in buying vehicles that can run e85,” Jacobson said. “But when there start to be more, the price of e85 will start to drop due to competition. Then even more people will come and buy e85 vehicles because of the price of that fuel. We’ve already seen this in Kansas City, where there are multiple e85 stations.”
The alternative fuel wave isn’t just catching on with private consumers, either. Researchers at the University of Kansas are trying to manufacture their own biodiesel to run the campus bus system. Ilya Tabakh, researcher for the KU Transportation Research Institute, says the KUTRI is taking grease from Ekdahl Dining Commons, located on Daisy Hill, and trying to transfer it into Biodiesel fuel that can be blended with the current supply. The campus buses currently operate on b5, but according to Tabakh the KUTRI could blend the biodiesel they made with the current b5 to create b20.
“It would be both an environmental and economical gain,” Tabakh said. “We would be spending less money on a higher quality fuel. As a kicker, you also get higher emissions quality.”
Tabakh said it was not clear how much of a financial gain the program would be until the buses had successfully run an entire cycle with the manufactured biodiesel.
But despite burning cleaner and being priced similar, alternative fuels are not without their downsides. According to Jacobson, ethanol burns hotter and faster than regular gasoline, meaning a vehicle that would get 30 miles per gallon with standard gasoline will only get about 25 miles per gallon if using e85.
“You’ll have a lower price at the pump and you will not suffer on power,” Jacobson said. “But you will suffer in miles per gallon.”
This means that using e85 will cost around the same amount of money as standard fuel because e85 is on average 16 percent cheaper and 13 percent less efficient than unleaded gasoline.
Regardless of the downsides, Zaremba thinks the station has an opportunity to thrive in Lawrence because of its type of people.
“In a community like Lawrence, you’ve got a lot of open minds, which is why I decided to do this here,” Zaremba said. “We have a lot people who will be interested in using the station because of its help to the environment.”
According to Zaremba, the station will open in four weeks, meaning Lawrence residents will have to wait about a month before they can get their fix of alternative fuels in town.
