Storage restrictions could limit ethanol supply

New Zealand’s environmental watchdog is being asked to drop safety provisions it ordered three years ago for storage of fuel ethanol blends to make it easier for oil companies to meet the government’s recently announced biofuels targets. Consultants have told the government that the potential supply of ethanol is limited by the fact that only about 22% of service stations have the double-containment tanks needed to safeguard against ethanol leaking into groundwater. The Environmental Risk Management Authority (ERMA) has been told by the Environment Ministry that the E10 (10% ethanol/90% gasoline) is more soluble than pure petroleum-based gasoline and can travel further in groundwater, and that the presence of ethanol means that a carcinogenic contaminant, benzene, degrades more slowly. (February 15, 2007)