BBI International...
 Consulting the Biofuels
   Industry Worldwide 

 ARCHIVED NEWS 

 June 17, 2002

 SHELL DECISION TO SWITCH FROM MTBE TO ETHANOL
 IN CALIFORNIA WILL PROTECT AIR, WATER AND CONSUMERS
 http://www.bbiethanol.com/news/view.cgi?article=535

 WASHINGTON, DC -Shell Oil Products US announced
 today it will discontinue the use of MTBE in its gasoline
 supplied to California consumers by the end of 2002. The
 company will replace MTBE with ethanol, which does not
 pose a threat to the stateâs drinking water supply. Shell,
 the stateâs second largest gasoline marketer, joins
 Californiaâs largest gasoline marketer, BP, in committing
 to be MTBE free by the end of this year. Phillips Petroleum
 already blends more than 80 percent of its gasoline in
 California with ethanol. 

 ãWe applaud Shell for their commitment to protecting
 Californiaâs drinking water by ending the use of MTBE and
 embracing clean, renewable ethanol as the alternative,ä
 said Bob Dinneen, president of the Renewable Fuels
 Association. ãI believe California consumers will reward
 oil companies like Shell that make an early switch away
 from MTBE.ä 

 By switching from MTBE to ethanol by the end of 2002,
 Shell will beat Californiaâs official MTBE ban deadline by
 one year. Although originally scheduled for December 31,
 2002, Governor Gray Davis earlier this year delayed the
 ban deadline until the end of 2003. 

 ãShell is obviously as confident about the ethanol
 industryâs ability to supply their needs as we are,ä said
 Dinneen. ãIn addition to being a refiner and marketer in
 California, Shell also operates a major pipeline and
 terminal operation. In a presentation to the National
 Ethanol Conference in March, Shell outlined how ethanol
 could be supplied to California this year and now theyâre
 proving it. This is further evidence that any oil company
 that wants to stop using MTBE this year can - all it takes is
 real commitment.ä 

 Shell accounts for roughly 18 percent of all gasoline in
 California, making them the second largest marketer.
 Their switch will create a market for an estimated 150 to
 200 million gallons of ethanol. According to California
 State Board of Equalization figures, BP, Shell and Phillips
 together account for approximately 55 percent of total
 gasoline sales in California. 

 ãThis is great news for farmers across the country who
 invested in ethanol plants to service California,ä
 concluded Dinneen. ãImportantly, as more California
 gasoline marketers switch to ethanol it will encourage
 ethanol production in the state as well.ä 


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