Ethanol
Kempstar is an independent commodity trading firm focused on the distribution, supply and trading of liquid fuel throughout the United States.
We trade energy: we create markets for fuel products; we deliver railcars, safely, on-specification and on-time; and we engineer innovative financing structures to the benefit of our customers.
Our wholesale fuel ethanol marketing operations primarily sell ethanol to major multi-state retailers, independent retailers and other end-users. Our ethanol supply primarily originates from both our long term ethanol refinery/producer supply contracts and our other spot and forward physical market purchases. We generally sell ethanol at a fixed or indexed price at the time of delivery.
Fuel ethanol in the United States must be anhydrous (less than 1 percent water). Fuel ethanol is denatured (made unfit for human consumption), usually prior to transport from the ethanol production facility, by adding 2 to 5 volume percent petroleum, typically pentanes plus or conventional motor gasoline. Fuel ethanol is used principally for blending in low concentrations with motor gasoline as an oxygenate or octane enhancer. In high concentrations, it is used to fuel alternative-fuel vehicles specially designed for its use. See www.eig.gov