In my post of September 1^st, Car dealer runs moonshine?, I noted that locally owned Pearson Fuels was teamed with AE Biofuels of Cupertino to build and supply 55 public E85 ethanol-fueling stations across California over the next 42 months backed by a $6.9 million Federal grant.  The State of California has upped the ante with an additional award of $4.0 million. 

The Pearson Fuels’ business model can be explained in a dozen words.  A massive government mandate flows through the pipes.  Spigot owners win.  The Renewable Fuel Standard mandates a blending of transportation fuels from renewable sources increasing annually to a target of 36 billion gallons in 2022.  California could account for 20% of the mandated amount.  Obviously, renewable fuels represent a longer list (more…)

Not really. Pearson Fuels opened in 2003 as the nation’s first Alternative Fuel Station. You know their owners as the folks who operate Pearson Ford on El Cajon Blvd. in San Diego. Their menu offers flavors you don’t usually see at your corner gas station, including ethanol, biodiesel, CNG, propane, ultra low sulphur diesel and even electricity.

The boom and bust that represents the ethanol business in our nation’s corn belt is being challenged by alternatives which are not disruptive to the food chain. Today, AE Biofuels Inc. of Cupertino and Pearson Fuels said they have been awarded a $6.9 million grant from the U.S. Department of Energy through its Clean Cities program. The two companies will build and supply 55 public E85 ethanol-fueling stations across California over the next 42 months.

Pearson Fuels will establish the stations. AE Biofuels Inc. will supply the product. The technological focus of the project will be the production of cellulosic ethanol from crop wastes such as corn stover and wheat straw, or energy crops such as switchgrass, sugar cane bagasse and miscanthus. The fuel produced will be identical to the ethanol derived from corn. It’s a win-win. Drivers get their fuel and bourbon distillers get their corn. As near as I can determine, nobody is making whiskey out of switchgrass.

Link to Pearson Fuels

Link to AE Biofuels Inc.