Propel Fuels gets grants for 75 stations (Sacramento)

Ethanol and biodiesel retailer Propel Fuels Inc., with two partners, has received approximately $11 million in grant funding from the U.S. Department of Energy and the California Energy Commission to build and operate 75 self-serve alternative fuel stations across the state over the next two years, the company announced Tuesday.

The company also formally launched its Bay Area operations.

Propel sells B-5, which contains 5 percent biodiesel and 95 percent regular diesel fuel, and E-85, composed of 85 percent ethanol and 15 percent gasoline.

The statewide station project, or the Low Carbon Fuel Infrastructure Investment Initiative, has the potential to create more than 450 jobs, while displacing 39 million gallons of petroleum and 187,500 tons of carbon dioxide emissions each year, according to Propel.

About 7 million of funding for the project was awarded by the U.S. Department of Energy’s petroleum reduction program. Another $4 million was granted through the state of California’s Alternative and Renewable Fuel and Vehicle Technology program. California has the largest fleet of alternative fuel fleet vehicles in the country.

Propel said it will match the grant funding with $16 million in private investment to speed up the build-out of Propel’s network of fueling stations.

Read the full story in the Sacramento Business Journal.