ND ethanol industry establishes promotion fund

By DAVE KOLPACK

WEST FARGO, N.D.

North Dakota's ethanol industry is setting aside a slice of its production revenues to set up a promotional fund.

Gov. John Hoeven and a number of ethanol industry officials announced the plan Wednesday at a West Fargo service station equipped with blender pumps that enable motorists to select from traditional and renewable fuels, depending on the vehicle.

"We are the first state in the country to have a promotional fund to market ethanol in North Dakota, and it's entirely paid for by the ethanol producers in our state," Hoeven said. "So it's not an expense to the consumer or the farmer."

North Dakota's five ethanol manufacturers have volunteered to set aside three-hundredths of 1 cent for every gallon of fuel they produce. The assessment will go to the new North Dakota Ethanol Council for industry promotion and market development.

Ethanol is commonly made from corn, although other materials are also used to make the fuel.

North Dakota ethanol makers have the ability to produce about 350 million gallons of fuel each year, a tenfold increase in the last five years, said Deana Wiese, the Ethanol Council's executive director. The assessment could raise about $105,000 annually for promotional efforts.

The nickel-plated blender pumps at the service station cost about $25,000 apiece. The Legislature agreed in the last session to provide cost-share grants to retailers for up to $5,000 per pump. A federal tax credit provides about $6,000 per pump.

About 100 blender pumps are being installed in North Dakota, and as many as 400 of them could be set up in a year, said Kent Satrang, CEO of Petro Serve USA.

"We thought the blender pump program was the No. 1 answer to our industry," said Russ Newman, a vice president of Tharaldson Ethanol, whose Casselton plant is expected to produce about 100 million gallons of ethanol a year.