March 18, 2005

Owners hope to turn key on biofuel station this fall

By Matt Cooper
The Register-Guard


Look for a new soybean- and corn-powered fill-up station in Eugene-Springfield this fall.

SeQuential Biofuels, a fuel marketer and distributor in Eugene and Portland, plans to open an alternative-fuel service station in September or October at 86714 McVay Highway, north of 30th Avenue and Lane Community College.

Biofuels - typically made from grain or bean oils - can be found alongside some gasoline pumps around the nation, but the proposed SeQuential station is a pioneering effort because all the fuels it would offer would be earth-friendly to some degree, managing partner Ian Hill said.

	SeQuential Biofuels, operated by partners Tyson Keever (left) and Ian Hill, will offer drivers a choice of blends of soybean-based biodiesel and gasoline mixed with grain-based ethanol. Photo: Chris Pietsch / The Register-Guard

SeQuential's project represents a three- way partnership with Lane County and the state Department of Environmental Quality.

The site was home to Franko Oil Co., but when Franko declared bankruptcy around 1991, it was protected from having to clean up significant ground contamination, Dave Belyea of the DEQ said. The county foreclosed on the property last September.

With the land now in government ownership, the U.S. Environmental Protection Agency may grant $200,000 in May or June for cleanup, said Jeff Turk, county property management officer. If the county doesn't succeed in getting the grant, the cleanup cost would be shared by the county, SeQuential and DEQ at $50,000 each, and possibly the Oregon Economic and Community Development Department, also for $50,000. "For the money that we have under either scenario, I believe we can get the site" ready to use, Belyea said.

SeQuential's purchase cost is solely the $50,000 cleanup cost, Turk said. The 0.6-acre site could have market value of $70,000, but, given the ground contamination, currently has zero value, Turk said.

Hill said SeQuential expects to spend about $1 million starting up the station.

The station would hire up to eight employees, boost property tax revenue and be an option for motorists who want alternatives to gasoline, Turk said.

	Map: STEPHANIE BARROW / The Register-Guard

The station would offer two kinds of fuel. One, for diesel engines, would be a blend of diesel and biodiesel, he said. The biodiesel would be made from soybeans and vegetable oil waste from restaurants and the food industry. The other type of fuel, for gasoline engines, would be blends of gasoline and ethanol, which is distilled from grains such as corn, Hill said.

Consumers would be able to choose from varying blends of biodiesel or ethanol. They also could buy pure biodiesel, which runs runs 50 cents to $1 more per gallon than petroleum diesel, Hill said.

Biofuels burn more cleanly than petroleum, can help the United States shift from the use of foreign oil, and can increase the use of sustainable domestic crops, Hill said.

"We see the flowering of the sustainable business movement with organic foods at grocery stores, we see the blooming of recycled products from paper and plastic," Hill said. "But we see a real lack of that happening at the retail fuel level. We'd like to let the market make the decision on whether it's a viable business or not."

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