BY SUSAN ERLER, Times of Northwest Indiana

serler@nwitimes.com

A string of new E85 fuel pumps will dot Interstate 65 all the way from the Great Lakes to the Gulf Coast in an initiative announced Friday by Indiana Lt. Gov. Becky Skillman.

"The goal is to make it possible to drive the length of I-65 using E85," Skillman said.

Gas stations at highway exits in Gary, Hobart, Merrillville, DeMotte, Porter and Michigan City were among 17 named by Skillman as recipients of some of the funding made available for dispensing the mix of 85 percent ethanol and 15 percent petroleum.

Indiana will partner with Kentucky, Tennessee and Alabama -- states sharing I-65 -- to get biofuel pumps installed all along the highway, Skillman said.

A $1.3 million grant from the U.S. Department of Energy to Indiana's Office of Energy and Defense Development will pay for installing new pumps or converting existing pumps at stations in Indiana.

The money, made available through the Clean Cities Program, will cover the cost of one biofuel pump at each fuel station along the route.

Some of the grant money also will be used to educate retailers and consumers about E85, said Brandon Seitz, energy division manager with the Indiana Office of Energy and Defense Development.

A survey earlier this year by the Chicago-based Web site Cars.com found that 46 percent of car buyers didn't know enough about alternative fuels like ethanol to consider buying flex-fuel vehicles.

Sites proposed as locations for the E85 pumps in Indiana were chosen by fuel retailers Gas America, Family Express, Speedway and Gas City Inc., which are working with the state on the initiative, Skillman spokeswoman Christy Denault said.

Skillman made the announcement during the grand opening Friday of the new BioIsland in Reynolds, Ind., where both E85 ethanol and B20 biodiesel are available.

Biodiesel is a blend of soybean-based biofuel and petroleum-based diesel. E85 is made from corn-based ethanol and petroleum-based gasoline.

BioIsland's new E85 pump is the 41st in Indiana, which in January 2005 had no public E85 pumps, Skillman said.

E85 debuted in Northwest Indiana just over a year ago at a Gas City station in Hobart. Gas City has been the only chain so far to offer the fuel locally, at stations in Hammond, Dyer, Porter, Michigan City and DeMotte, as well as in Hobart.

Meijer Inc. has pledged to having E85 pumps at Indiana locations, including Merrillville, Highland and Michigan City, by the end of the year after announcing a join initiative in May with General Motors Corp.

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