APP ALTERNATIVE ENERGY

The world needs all the energy we can develop,
in every potential form. While finding new ways,
to maximize the use of traditional resources such
as oil and natural gas, we also depend on br> technology to produce emerging sources of energy.





ETHANOL

Ethanol is a clean-burning, high-octane motor fuel that is produced from renewable sources, i.e., grain alcohol (corn). Because it is domestically produced, ethanol helps reduce America's dependence upon foreign sources of energy. As a motor fuel, a percentage of ethanol is combined with unleaded gasoline, i.e.; E10 and E85. This is beneficial because the ethanol decreases the fuel's cost, increases the fuel's octane rating, and decreases gasoline's harmful emissions.

In the State of Washington, there is a mandate that all unleaded gasoline consumed be an aggregate of 2% ethanol by December 1, 2008. Rather than an E2 blend, Washington will be providing an E10 blend. Conventional unleaded gasoline will no longer be available after December 1st. Ethanol E10 blend is already being phased in at retail stations across the State prior to the due date. At the pump, dispenser labels will inform customers that the fuel they are purchasing may contain up to 10% Ethanol.

Any amount of ethanol can be combined with gasoline, but the most common blends are:

E10 - 10% ethanol and 90% unleaded gasoline
E10 is approved for use in any make or model of vehicle sold in the U.S. Many automakers recommend its use because of its high performance, clean-burning characteristics.

E85 - 85% ethanol and 15% unleaded gasoline
E85 is an alternative fuel for use in flexible fuel vehicles (FFVs). There are currently more than 6 million FFVs on America's roads today, and automakers are rolling out more each year. In conjunction with more flexible fuel vehicles, more E85 pumps are being installed across the country. When E85 is not available, these FFVs can operate on straight gasoline or any ethanol blend up to 85%. As demand increases in our marketplace, APP will investigate in investing in E85 retail locations.

It is important to note that all vehicles are "ethanol vehicles" and can use up to 10% ethanol with no modifications to the engine. Often people confuse E85 for "ethanol", believing incorrectly that not all vehicles are ethanol-compatible.



For more information on ethanol and its benefits, please visit the American Coalition for Ethanol website. www.ethanol.org



Associated Petroleum Products, Inc.
2320 Milwaukee Way
Tacoma, WA 98421
Telephone: (253) 627-6179 or (800) 929-5243
Facsimile: (253) 627-3637


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