Business case for E85 fuel retailers
The National Renewable Energy Lab has released a technical report entitled, E85 Retail Business Case: When and Why to Sell E85. According to NREL,
The document identifies seven variables that can make E85 profitable and weighs their influence using a model NREL created based on a discounted cash flow analysis. These variables are:
- E85 equipment configuration
- E85 throughput
- Equipment costs
- Return on investment
- Maintenance and operation costs
- Base taxable income
- Annual throughput of mid-grade and premium
Knowing the relative influence of these variables helps retailers assess whether they are good candidates for an E85 project. The model also helps them estimate the minimum margin that they would need to make on each gallon of E85 in order to make their investment profitable.
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