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BFJ.com Exclusive: EPIC National Survey Shows More Consumers Are Likely To Use Ethanol, Environmental Benefits Cited As Top Reason

Date Posted: September 19, 2006

EPIC senior director of marketing Reece Nanfito talks about the group’s consumer tracking survey and the organization’s effort to promote ethanol use.

M.D. Brading, Biofuels Journal Associate Editor

A study to track how consumers perceive ethanol and it’s benefits revealed positive results earlier this year.

In May 2006, the Ethanol Promotion and Information Council (EPIC) commissioned an independent research firm, Luth Research, to survey national consumer awareness and usage of ethanol.

The results were then compared to a similar study done by Hall & Partners in January 2005.

“The 2005 study was a benchmark read of the industry at large,” explains EPIC Senior Director of Marketing Reece Nanfito.

“And the results reflected how most consumers perceived ethanol, its usage and gave us a general overview.”

Nanfito said the May 2006 survey revealed a significant increase in consumer perception of ethanol-enriched fuel.

Of the 1,034 consumers surveyed, over 73% expressed intent to likely fuel-up with ethanol compared to 64% a year ago.

“That’s a nine percent increase within a year,” said Nanfito. “We are looking at a significant increase in a short period of time.”

Founded in 2005, EPIC is comprised of over 100 ethanol producers and industry leaders working together to promote consistent and positive awareness for ethanol.

Nanfito said the organization’s goal is to educate consumers on the performance and environmental benefits of using ethanol.

According to the Luth report, consumers who expressed intent to use ethanol also cited environmental benefits as a major reason for their choice.

“Consumers felt strongly about the positive impact ethanol has on the environment,” noted Nanfito.

“Ethanol is a cleaner-burning fuel with a lower emission rate than gasoline and it’s a renewable energy source.”

Ethanol-enriched fuel reduces greenhouse gas emissions by 7.8 million tons, which is comparable to removing 118 million cars from the nation’s roads each year, states EPIC citing Argonne’s GREET 1.6 Model.

In addition to the environmental factor, the survey found consumers also felt compelled to ease the country’s dependence on foreign-oil by choosing ethanol.

Surprisingly, vehicle performance and ethanol costs were not cited as top priorities over fuel choice. Nanfito said the perception of availability also played a large role in swaying consumer choice.

“Most consumers noted that signage at retail pumps promoted ethanol use,” he said.

“Over 83% percent of consumers who used ethanol said they were reminded of its availability after seeing signs of its availability at gas stations and other locations.”

Nanfito said the report assists EPIC in directing ongoing and future promotions to boost the ethanol industry.

EPIC plans to conduct these surveys every six months to monitor consumer trends.

EPIC also is working toward aggressively promoting ethanol in new markets such as Texas and the East Coast where ethanol-enriched fuels are new to the market.

“The IndyCar Series program is a great example of how we are raising ethanol awareness,” said Nanfito.

“The IndyCar Series is powered by 10% ethanol-enriched fuel, and will transition to 100% fuel-grade ethanol in 2007 as a sign of commitment to the environment and the nation’s efforts to support homegrown fuel."

Nanfito also responded to a recent test conducted by Consumer Reports magazine that raises questions about E85’s fuel efficiency.

E85 is a blend of 85% ethanol and 15% gasoline.

The magazine found E85 emits less smog-causing pollutants than gasoline, but provides fewer miles per gallon, costs more, and is hard to find outside the Midwest.

“The price of E85 is variable, and when there is a price advantage vs. gasoline, then the mileage reduction is offset. That’s the Brazilian model – run the numbers and fuel up according to market conditions,” he said.

“Buying a Flexible Fuel Vehicle now assures you can exercise your freedom of choice later. It’s like buying an HD-ready TV. It will only get better as new engine technologies to optimize E85 come on the scene, such as the SAAB BioPower 9-5 which is now only available in Europe.”

Nanfito said as the availability of E85 grows, and innovation occurs, the future will look brighter for E85 and Flexible Fuel Vehicles.

“This is just the beginning,” he added.

Nanfito also said non-profit agencies such as EPIC want to lay to rest misconceptions about ethanol and educate consumers about the latest developments in the industry.

“Through awareness and promotion, we hope to spread the advantages of using ethanol,” he added.

EPIC hosts an informational web site at www.drivingethanol.org, where both consumers and manufacturers can gain information and learn more about the organization’s ongoing programs.

The site also offers “Ask The Expert” column where commonly asked questions about ethanol are addressed.

For more information on EPIC, call Joanna Schroeder, director of communications, at 402-932-0567 or email media@drivingethanol.org.

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