Harris Interactive: U.S. Drivers Want Ethanol

AUSTIN, Texas - January 24, 2007: A survey of more than 2,500 drivers across the United States revealed that a majority of drivers (95%) who currently do not use biofuels could be encouraged to make the switch from conventional gasoline. The survey, commissioned by Pavilion Technologies and conducted by Harris Interactive, uncovers drivers’ perceptions and usage patterns of biofuels in America.

“Americans are ready to make the switch to ethanol. The results of this survey demonstrate that drivers want to reduce the United States’ dependence on foreign oil and some are even willing to pay a premium price to help the environment,” said Matt Tormollen, chief marketing officer, Pavilion Technologies. “With ethanol production in full swing, this is an exciting era for the fuel industry and Pavilion is proud to work with ethanol manufacturers who are bringing responsible fuel alternatives to drivers across America.”

Incentives to Drive Consumer Demand

When asked what would encourage them to start using a biofuel in their vehicle, drivers offered the following response:

Lower price than conventional gasoline (72%)
Convenience -- e.g. if biofuels were sold at my local gas station (61%)
Desire to reduce the United States’ dependence on foreign oil (59%)
Improved engine performance (58%)
Proof that biofuels are better for my car (56%)
Knowing where to buy it (50%)
A tax credit or financial incentive from the government (48%)
Desire to protect the environment (48%)
Proof that biofuels are environmentally friendly (43%)

Only 5% of drivers who do not already use a biofuel said nothing would encourage them to use a biofuel in their vehicle.

Drivers Willing to Pay More to Help the Environment

Despite the fact that three out of four drivers (75%) agreed that they typically opt for the cheapest solution when purchasing fuel, 47% indicated that they would pay a premium price for biofuels if they were proven to be better for the environment than conventional gasoline.

Drivers Just Don’t Know Enough to Buy

When asked why they do not currently use biofuels, a majority of drivers said they did not think their car could run on biofuels (57%) and they don’t know where to buy biofuels (47%). These results suggest that consumers may not know that many cars on the road today can run on ethanol blends of up to 10% without modification and some drivers may already be using gasoline with some blend of ethanol. (Note: Consumers can find a list of the nearly 1,200 gas stations that sell E85, a blend of 85% ethanol, at the National Ethanol Vehicle Coalition Web site, www.e85fuel.com.)

Motivations of Early Adopters

Of the 5% of drivers who knowingly use an ethanol-blend fuel or biodiesel in their vehicle, the top three most commonly cited reasons for using biofuels were a desire to reduce the United States’ dependence on foreign oil (53%), concern for the environment (40%), and supporting the agricultural economy (34%). Interestingly, cost was not a significant factor for choosing to use alternative fuels, as only 15% of biofuel users say they use this type of fuel because they think it is less expensive.

Survey Methodology

This survey was conducted online by Harris Interactive^® on behalf of Pavilion Technologies between December 11 and December 13, 2006 among 2,534 U.S. adults 18 years of age or older who regularly drive a car, sports utility vehicle, truck, or minivan. Figures for region, age within gender, education, household income and race/ethnicity were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

With a pure probability sample of 2,534 adults one could say with a 95% probability that the overall results have a sampling error of +/- 3 percentage points. The sampling error for the sub-samples of car drivers who use a biofuel (e.g., ethanol-blend fuel or biodiesel) (n= 128) and car drivers who do not use a biofuel (n= 2,406) may be higher and may vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About Harris Interactive

Harris Interactive is the 12^th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

To become a member of the Harris Poll Online and be invited to participate in online surveys, register at http://go.hpolsurveys.com/PR.

About Pavilion Technologies (www.pavtech.com)

Pavilion Technologies' model-based software drives profitability for leading manufacturers like Cemex, Glacial Lakes Energy, NOVA Chemicals, Nestlé, SABIC Europe, TOTAL Petrochemicals, and VeraSun Energy. Based on the most powerful predictive modeling software in the industry, Pavilion's solutions improve production processes to facilitate quick response to market demands, continuous reduction of costs, consistent achievement of quality targets, and enhanced environmental quality. Pavilion is the leading supplier of control software solutions to the U.S. ethanol industry. With a commitment to delivering the highest ROI in the industry, Pavilion's ValueFirst^® customer engagement methodology ensures Predictable Results. Guaranteed^®.

EDITOR’S NOTE: A full copy of research findings, images, and ethanol industry resources is available at www.pavtech.com/ethanolsurvey.

Pavilion, Pavilion Technologies, ValueFirst, and Predictable Results. Guaranteed, are registered U.S. trademarks of Pavilion Technologies, Inc. All other marks are property of their respective owners.