Alum Fuels the Debate on Ethanol

High gas prices and increased environmental awareness have caused alternative fuel sources to soar to the top of the national radar. But—many Americans wonder—can ethanol really fuel a car?

Karl Doenges, BBA ’95 and president of CleanFUEL Distribution, says yes. He spends many of his days educating energy industry leaders about ethanol and championing the production of this resource in Texas.

“In general, the awareness about ethanol is growing by leaps and bounds, but the understanding is still lagging far behind,” Doenges says.

While the idea of using ethanol may be relatively new to consumers, the alternative fuel industry has a longer history. CleanFUEL USA, which has been a part of this industry for 15 years, created Georgetown, Texas–based CleanFUEL Distribution last April as a joint venture with Florida-based Protec Fuel Management. Together, the companies access fuel, cover risk management strategy and coordinate the installation of fueling stations.

Doenges, who earned his undergraduate degree in international business, entered the industry after working at the Department of Commerce in Washington, D.C., where he helped U.S. companies export energy technologies. His interest in alternative fuel grew, and a job offer from one of the companies he assisted brought the Texas native back to his home state to run the alternative fuel and international program for an independent oil and gas firm.

Three years later, in 2006, CleanFUEL USA hired him to create its fueling division. He developed a new strategy and found a partner company to implement his business model. When CleanFUEL Distribution was formed one year later, Doenges became its president. As the company moved forward with its production projects, Doenges began educating his peers within the industry about ethanol and misconceptions about its use.

“We do a lot of public speaking, and there’s still a huge educational effort that needs to be done,” he says. “A lot of retailers want to put in fueling stations, but they don’t understand everything, so education is still a very critical piece of all this.”

His audiences usually consist of fuel distributors, fuel retailers and fleet managers, but increasing community knowledge is also important. For instance, many people think ethanol costs more and is less fuel-efficient than gasoline.

“It’s a matter of getting people in the habit, teaching them that it’s OK to put it in their car,” he says.

Another barrier to widespread usage is a lack of infrastructure; an area must have a critical mass of flex-fuel vehicles to justify installing a station.

“People simply don’t buy new cars every year, so to populate the roads with flex-fuel vehicles that use (ethanol) will take time,” he says.

While soaring gas prices often grab the attention of consumers, Doenges says the public also begins thinking about alternative fuel sources when politicians discuss the benefits of ethanol.

“When President Bush gets up at the State of the Union (Address) and starts talking about ethanol, people hear it. And then (House Speaker) Nancy Pelosi says the same thing,” Doenges says. “When you have political leaders from both sides of the aisle speak about ethanol, it really creates a lot of visibility.”

Doenges’ company sees the need to build up the U.S. market for E85, a mixture of 85 percent ethanol and 15 percent gasoline. Clean-FUEL Distribution’s E85 stations, now in nine states, have expanded from Texas to Florida and up the mid-Atlantic, and Doenges hopes Texas will become a leader in ethanol production.

“We’re really working hard to get more ethanol production in Texas, because Texas has the largest number of flex-fuel vehicles in the United States by a huge margin,” he says. “Our goal is not only to build E85, but also to bring more ethanol plants into Texas.”

Advances in the industry are rising steadily, Doenges says, and he believes higher efficiency and lower costs will coincide with refining the ethanol production process.

“Ethanol has and will continue to have a positive impact on our economy and on our national security. It is better for the environment than using petroleum-based products,” he says. “I believe that using renewable sources for energy and other products will create many new industries and businesses in the U.S. We are in for a big change, and it is truly exciting to be a part of that.”
—Ashley Warren