Fuels

Pearson Fuels, AE Biofuels Get Altfuel Grant

Companies to build, supply 55 new E85 stations in California
CUPERTINO, Calif. -- AE Biofuels Inc., a vertically integrated biofuels company, and Pearson Fuels, an alternative fuels provider, have announced that they have been awarded a $6.9 grant from the U.S. Department of Energy (DOE), through its Clean Cities program. The award proposes that the parties build and supply 55 public E85 ethanol-fueling stations across California over the next 42 months.

The Southern California Association of Governments applied for the money through their Clean Cities Coalition, The Partnership. Since 1994, The Partnership has been facilitating the [image-nocss] creation of public/private business relationships and endeavors that serve to accelerate the deployment and market acceptance of Advanced Transportation Technologies throughout Southern California. In addition, The Partnership has received preliminary approval for a $4 million from the California Energy Commission, through its AB-118 matching grant program.

The stations will be located in areas with the highest concentration of flexible-fuel vehicles (FFVs). The DOE estimates that the initiative will help displace approximately 3.5 million gallons of petroleum annually.

This funding will be used to offset installation and permitting costs to position E85 dispensers in areas of greatest ethanol compatible vehicle population and to educate consumers regarding availability of this affordable, cleaner alternative. Under the terms of the agreement, AE Biofuels will supply Pearson Fuels with cellulosic ethanol and other biofuels for distribution through the E85 filling stations in California. Pearson Fuels will manage the construction and permitting of the new facilities.

"We are excited about the grant award, and we look forward to working with Pearson Fuels to bring our next-generation cellulosic ethanol to consumers," said Eric McAfee, chairman and CEO of AE Biofuels, Cupertino, Calif.. "California has over 300,000 flexible fuel vehicles already on the road today, but only a handful of E85 pumps at the state's 9,000 stations. This grant will allow us to bring cellulosic E85 fuel to drivers around the state and meet the demand for carbon reducing fuels."

Mike Lewis of San Diego-based Pearson Fuels added, "I am excited to see that we are now in a stronger position to bring alternative fuel infrastructure to the hundreds of thousands of flexible fuel vehicles already on the California roads while measurably reducing the state's dependence on foreign oil imports."

Pearson Fuels specializes in bringing alternative fuels to the public. With its first project in San Diego, Pearson built a fuel station offering 10 vehicle fuels. It included the first ethanol station for the state of California and the first biodiesel, dual-pressure natural gas and propane station in San Diego County. In 2007, Pearson's approach to alternative fuels enabled it to make an agreement with the California Air Resources Board (CARB) to develop an E85 fueling infrastructure throughout the state. Pearson currently has fuel dispensers in 12 different cities across California.

The Partnership administers the Clean Cities Program in the Southern California Association of Governments region and works to build up and support the public and private participants of the Coalition. The mission of the Clean Cities Program is to advance the nation's economic, environmental and energy security by supporting local decisions to adopt practices that contribute to the reduction of petroleum consumption. Clean Cities carries out this mission through a network of more than 80 volunteer coalitions, which develop public/private partnerships to promote alternative fuels and vehicles, fuel blends, fuel economy, hybrid vehicles and idle reduction.

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