Fuel Retailers Prepare Today for the Forecourt of the Future
"Last year, we hit over 1 million electric vehicle cars sold," said Chad Bass, director of product management, EV charging for Dover Fueling Solutions, headquartered in Austin, Texas. "Retailers need to start planning now, especially with new builds."
The Future of Biofuels
Today, E10 and E15 are seeing the most adoption at the pump in the world of renewable motor fuels. The number of sites selling E85, many in the Midwest, has grown in recent years as it's a less expensive option — after the government subsidy — than E10 or E15, according to Ken Shriber, managing director of Chappaqua, N.Y.-based Petroleum Equity Group.
"California is blowing up with E85 because of the lower cost," added RFA's Mullen.
[Read more: Alternative Fuels Industry Has Mixed Reaction to EPA's Decision on Year-Round E15 Sales]
She noted that ethanol-blended fuel, in general, is most popular in the Midwest, but the association is seeing more nationwide expansion by the day. Not only is there a typical cost savings of 3 to 5 cents, but there's also grant opportunities from the U.S. Department of Agriculture that certainly help to drive adoption, she explained. There's incentives and grants available for retailers to change over to E15, biodiesel or E85 as well.
"The fact that the largest independent retailers, including Casey's, Kwik Trip, QuikTrip, Sheetz and Kum and Go, are supporting and promoting the sale of E15 has spurred demand for other retailers to consider it as well," Mullen pointed out.
For those retailers offering E10, the transition to E15 is not difficult because the equipment is largely compatible and they likely already have the infrastructure ready for it, she said. Many of the major oil companies have their own blends of it now.
To start offering ethanol-blended fuel or to prepare for the future, any new builds — or changes in equipment — can be an ideal time for retailers to set up the infrastructure so that the pumps can handle anything coming down the line, according to Steve Morris, owner and president of St. Paul, Minn.-based Retail Management Inc., which manages 20 stores.
"When we do retrogrades and retrofits, we are hedging our bets from an infrastructure standpoint to set up lines from all the tanks to all the dispensers because if there is a change or we need to put in a new product, we have the lines ready," Morris said. "It's a hedge because that is the time to build the infrastructure as it's so cost prohibitive afterwards."
The Future of EVs
Larger chains already have been installing EV chargers, and many are taking advantage of the funding offered by the National Electric Vehicle Infrastructure (NEVI) program, which pays 80% of eligible costs including acquisition, installation and network connection. The funding can offset the cost of installing chargers at new and existing locations.
"There are standards that have to be met, such as a minimum of four DC chargers, each one has to deliver at least 150 kw, the location has to be within a mile of a highway, etc.," said Dover Fueling Solutions' Bass. "Now that standards are set, each state has been providing funding."
[Read more: Coalition of Food & Fuel Retailers Oppose RECHARGE Act]
Each year, more and more convenience store retailers and travel center operators are installing EV charging stations at their stores, with many taking advantage of the grants available from the government to do so. And while electric vehicles are still a small percentage of the overall cars on the road in the U.S., the market continues to grow each year. Currently, California, Florida, Texas and Washington have the highest concentrations of EVs.
"We are starting to see more chargers in public view rather than off in a corner somewhere on the lot with poor lighting," said Bass. "There is more of a focus on how to make the charging experience better, such as awnings, trash cans nearby, air stations for tires and more."
Some retailers are installing their own network of EV chargers using grants and funds, while others are choosing to lease their space to charging companies. Bass pointed out, though, that there is little control over the experience when leasing.
"The natural progression is EV chargers will tie directly into the store point-of-sale, and there will be the ability to have ads right on the charger, place orders from in-store and more, like is seen at the gas pump," he said. "EV charging is a captive audience and if it works well for someone pumping gas for five minutes, it will work great for someone who is stuck there for 25 [minutes] while charging, whether via an app or a screen on the charger."
Just as with biofuel infrastructure, new convenience stores being built can prepare for the addition of EV charging, even if they don't offer it right away. A retailer can set it up so that they have a "conduit designed into the current specifications so when they are ready to implement, they can run the copper through and have the installation done quickly without having to tear up concrete in the parking lot," Bass explained.
This can apply to site upgrades that include repaving the parking lot, too, said Morris, who recommends working with an EV provider to understand the necessary infrastructure and other needs such as the conduit and lines that must be buried in the parking lot.
"Bury it now and then leave it so it's ready when you want to install chargers," said Morris. "You don't even have to put in a panel at this point, but just bury the lines."