2023 FMN Fuels Innovators of the Year Award

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in the Cloud

Convenience stores do it all—their tech can do

The Right Fuel Strategy is a Balanced Approach

The best fuel offering will strike a balance between conventional and new energy options.

Meet the Winners

This year’s top fuels innovators are Sheetz and OnCue.

Driving Retail Fueling and Charging Innovation

Leaders from Sheetz and OnCue discussed their approach to selling fuels.

Innovation With Insights and Interactivity

The 2023 Fuel Innovators of the Year Awards marked another outstanding success for this annual event. Held on October 4 as an educational session during the NACS Show, it featured a packed house and garnered excellent reviews from attendees.

We created this award for two primary reasons. The first was to reward companies that were going beyond their peers in the innovative use of technology and their fueling and charging offerings during a time of disruption when operational efficiency and meeting a customer’s energy needs are critical for success. The second was to offer an educational and interactive platform for these leaders to share their insights with the rest of the industry. Most of the session involved this sharing of insights, and it could clearly have continued far longer than time permitted.

FMN would like to thank both companies for not only accepting the award but agreeing to take part in the educational session. As FMN editor and the session moderator, I would like to personally thank Scott Minton from OnCue Marketing and Brian Renaud from Sheetz for being gracious with their time and knowledge.

Both discussed their experiences with the move to EV charging—both

good and bad—and a range of approaches that are being explored to serve these customers. Similar discussion involved educating customers on how a range of fuel offers might fit their specific needs (without confusing them), the role of loyalty to link the forecourt and the store and how the store itself can increasingly work with the fuel offers to drive site traffic with the prospect of fewer total gallons in the marketplace.

A quick note. We provide most of the main transcript from the session in this issue. However, for space reasons much of the Q&A from the audience is omitted. If you are going to be at the NACS Show next year, take the time to attend the session and directly participate yourself. You won’t regret it. Also, check out the recording of the session (and other education sessions) at convenience. org/store.

that fuels the Future

Thank you to our clients for consistently collaborating with us to bring innovative software solutions to the industry.

Retail in the Cloud

Convenience stores do it all—their tech can do the same.

BY MICHAEL JASZCZYK

When a consumer visits a convenience store today, their expectations are completely different than they were even just a few years ago. What once served as a quick road trip pit stop is now a multistage retail experience with elements of hospitality businesses, quick-service restaurants (QSRs) and even delivery services.

In fact, Uber Eats showcased its convenience store offerings in a 2021 Super Bowl ad and DoorDash created a virtual convenience store brand, DashMart , to keep up with growing demand for convenience store deliveries.

On the restaurant front, popular c-stores are becoming more well-known for their unique recipes. For example, Wawa has invested in its Built-to-Order menu and Sheetz describes its restaurant offerings as “a food program that rivals any quick-serve restaurant you’ve ever visited.”

As these convenience stores prioritize new formats and other unique points of differentiation, they will need technology that can keep up with their growth. Unfortunately, many c-stores are using outdated technology that stifles innovation rather than bolsters it. Businesses should consider investing in the technology that keeps the convenience in convenience store. This includes cloud-based technology, simplified payment touchpoints and AI-based personalization.

CONNECT THE BUSINESS WITH THE CLOUD

Some convenience stores have QSRs, while others may offer hospitality elements like showers and laundry services for truck drivers. Coordinating these unique features can be challenging, especially when management and front-of-house teams are not in sync. Luckily, these elements can be interconnected with cloud-based technology.

Cloud technology can ensure that problems are surfaced before they reach the customer. For instance, if a team member assigned to meal preparation sees that a key ingredient is running low, that person should be able to quickly alert management to this issue so a restocking order can be placed. Similarly, if a fuel pump breaks down, the right mechanics must be notified immediately.

Unique touchpoints like mobile POS platforms, kitchen production systems and fueling capabilities can all be automatically connected to management in one location. This creates a single source of truth and ensures that corporate teams have insight into what’s happening at every location.

The cloud empowers retailers to look at their business through a wider lens and ensure that no aspect of the shopping experience is lacking. With cloud technology in place, convenience stores can focus on their customers’ current and future needs.

HEIGHTEN CONVENIENCE WITH SIMPLIFIED PAYMENT TOUCHPOINTS

When integrating new formats or features, the more intuitive the adoption is, the more likely success is. One area

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When a c-store can readily accept diverse payment methods and simplify cross-functional transactions, the customer experience will be stronger and more convenient.

in which convenience retailers can improve the simplicity of new touchpoints is payments.

For example, if a customer wants to place a mobile order for a freshly made sandwich while she pumps gas, she should be able to pay for both the meal and the gas in the same transaction. This requires the mobile app’s payment feature to be connected to both the store and the forecourt. Additionally, store employees will need a way to check that the order was paid for before they send the customer on her way.

This scenario requires cutting-edge technology that connects the organization in a simple and secure way. It can enable the business to improve the customer experience without overcomplicating the payment operations. Without this technology, customers will experience inefficiencies that might encourage them to choose another retailer.

What’s more, these platforms must be prepared for continued innovation. The payment sector is rapidly changing as new payment methods—like cryptocurrencies and digital wallets—grow in popularity.

When a c-store can readily accept diverse payment methods and simplify cross-functional transactions, the customer experience will be stronger and more convenient.

INCREASE LOYALTY WITH PERSONALIZATION

Consumers are growing increasingly more accustomed to personalization in their retail experiences. In fact, according to McKinsey research, “71% of consumers expect companies to deliver personalized interactions. And 76% get frustrated when this doesn’t happen.”

As convenience stores incorporate more digital touchpoints like mobile apps, self-checkout kiosks and advanced fuel stations, the amount of customer data available will skyrocket. This data can be used for a variety of purposes, including personalization and loyalty programs, which can be driven by AI. With AI, convenience retailers can deliver the best benefits for loyal shoppers in real time, like promotions, product recommendations

and one-click transactions.

Similarly, if a commuter stops at the same c-store every morning for his favorite coffee, the retailer can enhance that relationship with recommendations that optimize the visit. The retailer can send the commuter mobile notifications at the same time every weekday, reminding him to pre-order his usual drink so it’s ready for pick-up when he arrives. By giving this commuter five minutes back in his day, the retailer will stand out from the competition.

The more personal a relationship is, the more value both parties receive. As retailers incorporate data and AI into their strategies, the opportunities within personalization will appear and improvements in profitability and customer loyalty will emerge.

C-STORE TECHNOLOGY MUST SCALE WITH THE BUSINESS

Technology can make or break the convenience factor of a c-store location. If the technology is not designed to help these retailers meet growing customer expectations, the retailers’ innovation will be limited and customer loyalty may falter.

By incorporating the cloud, payment technologies and AI-based personalization into the c-store experience, retailers can maximize growth as they expand into new areas like food and hospitality.

Michael Jaszczyk is the CEO of GK Americas and chief digital transformation officer of GK Software SE. Founded in 1990, GK Software is a global player in cloud services for retail. Its solutions redefine and set precedents for customer experience and drive growth and sustainability for retail clients.

The Right Fuel Strategy Is a Balanced Approach

BY SCOTT NEGLEY

With the rise in popularity of electricity, natural gas, hydrogen and ethanol as energy sources, fuel station owners are understandably questioning how or if these trends should impact their offerings. While there isn’t a simple answer, owners can start by weighing the benefits and drawbacks of incorporating these kinds of energy into their fuel strategy. More than likely, they will find that striking a balance between different fuels is the right way to go.

Standard petroleum still dominates the fuel landscape today, but ethanol is also gaining momentum due to its ease of distribution, homegrown and renewable messaging and U.S. government program support. The best fuel offering

for customers will likely combine the efficiency and power of petroleum-based fuels with a proportional offering of renewable biofuels such as ethanol or biodiesel. For site owners who are rightfully cautious about making a change, let’s evaluate some of the reasons both standard petroleum and ethanol should be considered as part of your balanced fuel portfolio.

GASOLINE DELIVERS ON HORSEPOWER AND FUEL EFFICIENCY

Many consumers still prefer engines powered by petroleum, and for a good reason—their ability to deliver more energy content. According to the U.S. Department of Energy, a gallon of standard gasoline produces about 27% more energy than a gallon of E85,

which contains up to 83% ethanol. While this may not sound significant to some, losing nearly one-third of your horsepower is quite a large difference—especially when you really need it.

For consumers looking for the best fuel economy from their vehicle, the choice is also standard gasoline. Since ethanol has less energy density, vehicles run less efficiently, delivering fewer miles per gallon for each tank of ethanol. Additionally, since ethanol is a type of alcohol, it can lead to corrosion and diminished performance in the fuel system of non-flexible fuel vehicles, causing rust and cracks over time.

ETHANOL’S ENVIRONMENTAL IMPACT

By comparison, ethanol runs cleaner than gasoline. The most recent U.S. Department of Energy study, published by Argonne National Laboratory in 2021, found that United States corn ethanol emits 44%-52% lower greenhouse gas emissions than gasoline. These findings emphasize the point that ethanol fuel blends are a highly

effective way to reduce automotive emissions.

Ethanol production is also easier on the environment than gasoline. Carbon dioxide released by an ethanol-fueled vehicle is offset by carbon dioxide captured when feedstock crops are grown to produce ethanol. The Argonne National Laboratory study concluded that manufacturing corn ethanol produced much less greenhouse gas than the same amount of gasoline. On a life cycle basis, emissions are reduced by 34% with corn-based ethanol produced from dry mills and more than 88% when cellulosic feedstocks (non-foodbased crop residue) are used.

THE ECONOMIC UPSIDE OF ETHANOL FUELS

Almost every gallon of noncommercial vehicle fuel sold in the United States consists of 10% ethanol, with other ethanol offerings ranging from 15%-83%. Updating a fuel station to include higher ethanol blends comes at a cost. So why should a station owner care? It comes back to consumer demand.

In the Simon + Kucher 2021 Global Sustainability Study, 50% of consumers ranked sustainability as a top-five value driver on average across categories, which means it is an important purchase criterion and is a key differentiator in a business’s overall value proposition. Going a step further, 34% of consumers said they are willing to pay more for sustainable products and services. Applying that insight to a fuel strategy, station owners could see growth in customer demand and total revenue by incorporating a lower-emissions fuel like ethanol into their offerings.

Now let’s look at the economic potential of ethanol blends. Everyone felt the pinch of higher gas prices in 2022. During that time, ABF Economics

found that consumers saved an average of $0.16/gallon filling up with E15 (15% ethanol) compared to E10. On a larger scale, ABF also estimates ethanol will contribute $16.7 billion to the nation’s GDP and that moving to an E15 standard would support nearly 555,000 jobs in all sectors of the economy. The combination of GDP, household and corporate income supported by E15 could increase federal and state tax revenues by $13 billion.

IS UPDATING THE RIGHT MOVE FOR SITE OWNERS?

After considering all the pros and cons of creating a balanced fuel strategy by adding ethanol blends to your fuel portfolio, it is important to know that updating a fuel station to include midrange ethanol options comes at a cost to the owner—but there is help.

In late 2022, the U.S. Department of Agriculture began accepting applications for $100 million in grants to offset infrastructure costs associated with selling biofuels from U.S. agricultural products. The USDA is making these funds available through the Higher Blends Infrastructure Incentive Program, which seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks. While there are various factors to consider in deciding what’s best for each site or region, the good news is technological developments are contributing toward making this an easier and more sustainable move.

The big takeaway is that the future of transportation energy will include a blend of conventional gasoline-based fuels and other energy options, such as electric and hydrogen. Higher ethanol blends must be part of the solution for the long-term, lower-carbon road map we have ahead of us.

Standard petroleum still dominates the fuel landscape today, but ethanol is also gaining momentum due to its ease of distribution, home-grown and renewable messaging and U.S. government program support.

Scott Negley , senior director of product management at Dover Fueling Solutions (DFS). All DFS Wayne Ovation fuel dispensers come standard with an E40/ B20 UL listing, an increase from E25.

WINNERS MEET THE

This year’s top fuels innovators are Sheetz and OnCue.

SHEETZ

Altoona, Pennsylvania-based Sheetz earned the award for a fuels retailer with 100 or more locations. The company was founded in 1952 and operates around 700 locations on the East Coast and in the Midwest. Sheetz’s stated mission is to provide fast, friendly service and quality products in clean and convenient locations.

Inside the store, Sheetz offers made-to-order (MTO) fast food. The menu covers breakfast to a family dinner to a 3 a.m. late night snack. All menu items are available all day. Each store also has a fully stocked Made-to-Go, grab-n-go, ready to eat selection boasting things like hot breakfast sandwiches, fresh fruit, cheeses, yogurt and more. Its Shweetz Bakery items are always fully stocked.

The company uses technology to allow customers to order food electronically through a touchscreen, or online from anywhere.

Sheetz offers authentic, hand-made espresso beverages created on traditional Italian espresso machines—made in the store, on the spot.

The Sheetz app allows the customer to find the closest Sheetz store, purchase Rewardz, buy a gift card, get mobile offers, view nutritional details about MTO offerings and more.

Sheetz promotes its fuel quality and the use of technology to ensure that the quality is maintained throughout the fueling infrastructure. This starts with gasoline produced by major refiners enhanced with detergent cleaning additives that contain ingredients that help prevent and remove deposits on carburetors, intake valves, fuel injectors and other engine parts. Gasoline is formulated to meet or exceed the most stringent EPA requirements.

The company ensures a controlled environment where underground storage tanks are equipped with advanced fuel-level monitors and overspill safeguards. Other sensitive electronic probes monitor tanks and automatically halt the flow of gas if water or sediment is detected.

In addition, the company markets diesel fuel, K-1 kerosene, E85 and E15 throughout its network. It has EV charging at 95 of its locations and recently passed the milestone of delivering two million EV charges.

ONCUE MARKETING

Stillwater, Oklahoma-based OnCue Marketing (operator of OnCue Express) earned the award for a fuels retailer with fewer than 100 locations. The company’s beginnings go back to a 1966 community convenience store. Today, OnCue has more than 75 locations and over 1,500 employees throughout Oklahoma and Kansas.

The OnCue mission is “to better the lives of those we serve through innovation, exceptional customer experiences and invested team members.”

In-store offers include foodservice, from savory snacks to full meals. Grill On the Go provides fast and convenient fresh food. OnCue’s Roller Grill offers cooked brats, hot dogs, sausages and Tornados.

The OnCue mobile app allows the customer to redeem offers, rewards and more.

On the rewards front, there is OnCue Rewards with Kickback, where each point is worth $.01 and 100 points equal $1.00. It provides exclusive

deals and giveaways in stores and on the OnCue app each month to get drinks and snacks for free.

OnCue promotes the quality of its Top Tier Phillips 66 gasoline. Top Tier has three times more detergent additive than the minimum required by the EPA.

On the ethanol side, OnCue offers ethanol-free (which is popular in the region) as well as ethanol-blended gasolines up to E85. It pays equal attention to its diesel product, with an emphasis on its winter performance. OnCue starts winterizing its diesel early in the season when temperatures are approaching 32°F to offer more protection.

The company operates EV charging at six locations, all Level 3 fast chargers, and has explored a range of approaches to servicing this market. OnCue continues to evaluate new locations for additional EV chargers. All OnCue EV charging stations include CHAdeMO and SAE Combo (CCS) ports.

In addition, OnCue offers compressed natural gas (CNG) at select locations.

By Keith Reid

DRIVING RETAIL FUELING AND CHARGING INNOVATION

Leaders from Sheetz and OnCue discussed their approach to selling fuels.

Fuels Market News was excited to present the 2023 Fuel Innovators of the Year awards to OnCue Marketing (OnCue Express), for a retailer with less than 100 sites, and Sheetz, for a retailer with 100 or more sites, at the NACS Show on October 4. Accepting the award were Scott Minton, director of business development for OnCue, and Brian Renaud, Sheetz director of retail fuel pricing and analytics. A lively discussion followed on how these companies achieve excellence in their fueling and charging operations. Here are some of the highlights.

DESCRIBE HOW YOUR COMPANIES APPROACH FUELING RELATIVE TO THE OTHER CATEGORIES YOU HAVE ON YOUR SITES.

Minton: Our company has always had a focus on using the forecourt to get people to come into the main store. So, we want to have a nice, open, inviting outside. We have canopies that cover our customers from the dispenser all the way to the store. We offer a lot of different fuels to get people

We’re one of the few states in the country that has an opportunity to sell 100% gasoline. It’s a great product for us.

–Scott

Minton, director of business development for OnCue

to the forecourt. We want to make sure everyone feels comfortable going in, but once they get in, you must give them a good experience there as well.

Renaud: I’ll just echo some of Scott’s comments. Fuel is the front door to our business, and customers can then take advantage of our tremendous inside offer. Our customers value both. And now with EVs coming along, it is just a diverse product mix across the space.

BEYOND JUST CONVENTIONAL FUEL DIVERSITY, BOTH OF YOUR OPERATIONS HAVE HAD AN EARLY EXPLORATION OF SOME OF THE MORE UNIQUE, ALTERNATIVE FUELS. WHAT PROMPTED THAT?

Renaud: It’s an interesting dynamic in the fuel space right now because I think most people, they want it to be very simple. A lot of grades are cost effective for their wallets. You think about Unleaded 88, you think about E85, on the other

side you think about ethanol free, but the challenge there is just educating folks. I think some of the things we’ve done in the public channel in terms of price promotions have helped with that. It’s news outlets and other folks on social media that have really helped push our Unleaded 88 and E85 offers along.

The other thing I would mention is commercial diesel. That’s a space that doesn’t see as much seasonality as gasoline. We’re headed to 1,000 stores over the next four to five years, and a big part of that is commercial diesel. It’s about education.

Minton: Part of my former job before joining OnCue was working with one of the national gas suppliers in Oklahoma City. They were trying to push CNG all over the country. And one of my jobs was going to retailers like OnCue saying, let’s build some CNG stations.

I moved over to OnCue as a part of that relationship, so my first few years were dealing with alternative fuel solutions. So, when EVs started coming out, they gave that to me and we evaluated a few sites, which have now been upgraded. Now we’re going through upgrading and evaluating which sites should be upgraded next.

Moving to other fuels, we’re one of the few states in the country that has an opportunity to sell 100% gasoline. It’s a great product for us. We’ve been in three ethanol blends of E10, E15 and E85. We still operate CNG stations at 16 locations. And now we’re in the permitting process for a hydrogen solution that will allow us to have both pure hydrogen and blended hydrogen into CNG. Drivers should get a 10% to 15% boost on efficiency when that blend is in a standard CNG vehicle.

COULD YOU DESCRIBE HOW YOU USE TECHNOLOGY TO DRIVE STORE TRAFFIC?

Minton: I think location is more important than technology—you’ve got to have the right spot. However, technology is going to be critical for this newer generation. I’ve got two iPhones with me at any given time and the kids use phones all the time. We’re a Phillips 66 marketer, so we use the Fuel Forward app, which allows people to buy gas from their app and get a discount if they’re using the right cards. That also integrates into our proprietary, internal OnCue app, which gives you

points to buy products inside the store. It gives you an opportunity to give them a discount with one app, but really bring them into our own app and understand those customers a little bit better.

And you want the kids to be engaged also. There’s a little driving game in our app that my daughter loves to play. She has won dozens of little free drinks out of my store, and the app is full of fun things that kids like to do and has all the bells and whistles for adults as well.

Renaud: At Sheetz, we obviously leverage our mobile app quite a bit. Our loyalty program is one of the best that’s out there. Our customers can redeem points for cents off fuel or discounts from the inside of our store. When I think about technology moving forward though, what is really the definition of convenience? You think about c-stores adding drive-throughs and curbside pickup. You think about delivery coming out of the c-store space. It’s figuring out what technology meets the customers, where they are in terms of convenience and what is that definition 10 or 15 years from now? You know, to Scott’s point, everyone’s on their cell phones now. Where are these customers going?

Where can we meet them with technology and our offers? What can we do to satisfy their ongoing needs?

WHAT ARE YOU LOOKING AT WHEN YOU’RE LOOKING AT REDUCED GALLONS IN GENERAL IN THE INDUSTRY AND POTENTIALLY IN YOUR OPERATIONS AS WELL?

Renaud: I think the definition of gallon just changes over time. You’re probably going to see more biofuel blends out there—E15 (Unleaded 88) will probably come in at higher gallons if those costs stay lower. Even if you look at the most aggressive EV growth curves, turning over the U.S. internal combustion fleet, that timeline’s not up to the mid-2040s into the 2050s. So, we’ve got some time. Commercial diesel is going to take even longer to turn over, whether it’s hydrogen or renewable diesel. But until then, your mix is also going to change.

California is a state that’s currently pushing renewable diesel heavily. It’s a higher cost diesel and it hasn’t spread across the nation quite yet, but that’s coming. I think renewable diesel could

stave off the impact of EVs in the heavy-duty space if those costs do come down.

Sheetz is really a destination more than an on-the-go kind of stop. We view ourselves as somewhere that folks seek out. Hopefully we can adapt and change as we move forward, and have an offer that supports or raises our visitation levels over time.

The other thing I think about is the consolidation that’s happening out in the market. I think it’s going to be harder and harder for your momand-pop shops to stay in business. You look right now at borrowing rates or trying to acquire capital to grow, and it’s a very difficult scenario for folks that aren’t cash heavy. So, I think there’s going to be gallons that are up for grabs for your bigger players out there. That’ll make you a little more optimistic than others. But I think you’re going to see continued consolidation.

I think your highway sites are going to be more successful from the standpoint of continued visits as EV comes on board. And then for those more rural markets, it’s really figuring out how to continue to make those sites that everyday stop for all your convenience needs, whether that’s pharmacy, snacks, whatever. It’s going to be an interesting world as we move through the next decade or two.

Minton: I’ll compound on what you were saying. It doesn’t necessarily have to be a big retailer that’s going to be successful over the next years. It’s going to be the better or best retailers in a market.

I think that as we move forward the industry will see fewer gallons, but the best retailers will maintain or increase their gallons. But, like what Brian was saying, it is going to be difficult for some companies to stay in business.

I think a lot of those customers will continue to come to the stations where they feel the safest, feel the cleanest, and the store’s inviting. So, operationally you must make sure your customers are saying hi to people when they walk in the door, making people want to come back to your location, giving them a good experience while they’re there.

I do believe the gallons are going to drop. There’s going to be a different mix coming. But there are other options coming down the road.

America’s best at innovating when we must, and the best retailers will continue to innovate.

BOTH OF YOUR COMPANIES ARE EXPLORING EV CHARGING. WHAT ARE SOME OF THE THINGS THAT YOU’VE BEEN PLEASED WITH AND THE MAIN CHALLENGES THAT REMAIN BEFORE YOU CAN TREAT IT THE SAME WAY YOU TREAT DIESEL OR GASOLINE?

Minton: A major challenge today is the equipment is failing, and it’s hard. My techs can’t even get into the equipment in some cases, unlike our liquid fuels where these guys can rip a thing down, rebuild it and have it back up and running in a few minutes. If a fuel dispenser doesn’t work, someone inside my store will know about it in about a minute. EV drivers seem to be used to it not working half of the time, so they just go to the next place if they can make it. Sometimes they come in and let us know. Sometimes we can reboot the charger, and it comes back up and it’s running.

With liquid fuels we can be responsible for everything. We don’t have to have a tech come for everything. On this EV stuff, a lot of times, I have someone behind a computer a thousand miles away diagnose the issue, if they can diagnose the issue, and try to help me get back up and running.

Another example is the screens on these displays crack if they face the sun. We used to have the same issues with liquid fuels, but they were worked out. We don’t have canopies over them yet. We’ve talked about it. That would probably also fix some of my screens going bad if they had some shade over them.

The chargers have already been upgraded several times from 50 kilowatts to 100 kilowatts and the latest one we brought in is 325 kilowatts to two different chargers simultaneously. I think that’s going to continue to get bigger and better and more powerful to be able to fuel the vehicle faster. No one wants to sit there for two and a half hours. I love it when they come into my store for 20 minutes, but I don’t necessarily want them in my store for two and a half hours either.

We must figure this out, and that’s one of the reasons why we only have six stations. We’re trying to figure out the right technology to bring in rather than deploy it everywhere and decide we

need something different. Every new station that we build is getting infrastructure in the ground, so it’s basically just conduit in the ground that goes out to where we would eventually install EV chargers. We’re not doing pull-through yet.

Renaud: We put our first EV charger in back in 2012. So, we’ve been in the space for a little over 10 years. I think we’re going to hit our 100th with chargers in the next month or so. All our sites are hosted, so we work with a third party, whether it’s Tesla, EVgo or Electrify America to install those chargers on our sites. That speaks to some of the issues that Scott discussed, which is if there’s an issue with those chargers, we must wait for that third party to come fix the issue. So we have no control over supporting issues with our technicians, and that can create longer wait times to fix them and frustration for our customers. Adding to that, the hosted partners that we’ve worked with are very protective of data and data sharing—Tesla in particular.

Just a general comment about the EV charging world right now. There’s a lot of players in the market that weren’t our competitors that now you could consider our competitors for visits. Everyone from utility companies to malls to shopping centers to places of employment. We’ve seen mockups of potential diners—these huge 24- to 36-charger outlets on major routes. So, everyone becomes your competitor for that visit.

I would also just make a comment about range anxiety. I think that point is a little bit overblown. I think the average driver drives something like 35 miles a day, and most of these vehicles now are 200-300 miles per full charge. So, I am worried about that local customer and what they’re going to do with those convenience visits if they can charge at home or at work.

There are just so many dynamics out there. We operate in six states—soon to be seven in Michigan. Every state has a different policy around EVs and who can play in the market and what it’s going to look like.

Uptime at the pumps as well as the EV chargers is important. I think the stat right now for EV is that one out of every five charges fail. Now, that’s not a great experience by any means. So, when I think about technology and EVs moving forward, it’s just having enough uptime and sustainability

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every single day to give your customers the confidence that they can show up and it’s all going to work well.

On the liquid fueling side, that’s not as big of an issue for anyone, really.

Minton: Something I forgot to bring up earlier is working with the Charge Ahead Partnership Group to help guide policy. We passed a bill in Oklahoma last year that essentially bars a utility from rate-basing equipment. I promise you, even if they say they’re not interested in rate-basing equipment or rate-basing the electricity itself, they are. They want to see this move forward. If you can get legislation in your states before there’s a million vehicles on the road, you’re going to have a lot more success getting that through the legislature.

ARE YOU MAKING ANY PLANS TO EXPLORE MORE AGGRESSIVE ZERO CARBON OR LOW CARBON RENEWABLE FUELS?

Minton: We’ve got a hydrogen station permitting right now, so we’re looking at that. CNG is lower carbon than diesel or gasoline, but still not net zero unless you’re using renewable landfill gas where it is carbon negative. That feedstock is significantly growing year over year. And then with this new drop in e-fuel—it looks fantastic— and we literally could use the exact same gasoline dispenser with e-fuel going through it and be carbon negative. The driver doesn’t notice any difference.

Renaud: I’m probably more bullish on renewable diesel than biodiesel. Biodiesel has some issues with low temperatures, obviously. We play in the biodiesel space up to B20 at some sites. Typically, we do B5/B6. That’s really the extent of our biofuel offer. We started to look at hydrogen a bit. We’ve played with some data on it, but we’re not quite there yet. I think renewable diesel has a real chance. California, Oregon and now Washington are sort of setting the example for the rest of the country. And again, if those costs come off, I mean, it’s not just about lowering costs today, it’s about potentially not having EV or hydrogen impact the heavy-duty space. And it’s a drop-in product. It has the same chemical makeup as petroleum diesel, and it doesn’t have those low temperatures issues that the bio has.

When I think about technology moving forward though, what is really the definition of convenience?

–Brian Renaud, director of retail fuel pricing and analytics for Sheetz

CAN YOU TALK A LITTLE BIT ABOUT THE ROLE ETHANOL FUELS SPECIFICALLY PLAY IN YOUR OPERATIONS?

Renaud: Overall demand really hasn’t jumped back since 2019. But, if we’re able to offer a lower cost product that performs well for almost everyone—I think 95% of light vehicles now can take Unleaded 88 (E15). So, there’s a big market. We have about 425 stores with unleaded 88 right now—about 60% of our sites, and we’re excited to continue to add it at every new store. It’s a great product.

Minton: I believe probably 75% of our stations have both E15 and E85. We haven’t been able to put it in some of our older stations that just don’t have a footprint for a new tank, otherwise we would add it there as well. We’re committed to it internally with our fleet as well as providing it to our customers.

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SPONSORS THANK YOU TO OUR

Fuels Market News would like to thank the sponsors who helped support the 2023 FMN Fuels Innovator of the Year Award.

Advanced Digital Data Inc. (ADD Systems) has been providing computer solutions for the petroleum, propane and convenience store industry since 1973. Today, we provide a full spectrum of “best of breed” products and services for our customers. Since its inception, ADD Systems has focused exclusively on providing turnkey software and hardware solutions for the energy distribution and related markets. With a broad suite of solutions that can accommodate any size operation, we have attracted a diverse client base that includes local, regional and national petroleum and propane distributors, fuel wholesalers, convenience store operators and gasoline jobbers.

The American Coalition for Ethanol (ACE) is a grassroots ethanol advocacy organization, uniting ethanol producers, farmers, investors, cellulosic biofuel stakeholders and businesses in support of our mission dedicated to making American ethanol the consumer fuel of choice. Since 1987, ACE has been advocating for public policies that support biofuels, developing new markets and infrastructure for ethanol and communicating the benefits of biofuels to policymakers, the media and the general public. ACE’s grassroots members put a face on the issues that matter most to the biofuels industry, and we work to proactively advance ethanol priorities through member-driven activities that include interactions with policy leaders at advocacy events in Washington, D.C., and around the country.

AutoBrite focus on providing state-of-the-art equipment, professional products, quality service and training for our clients, all for a fair price. We take pride in being a leader in the car wash and auto detail industry, and we take pride in sharing our knowledge and expertise with our partners. While we have a great history of providing our customers with high-quality car wash equipment and services, we are also looking towards the future. In 2022, AutoBrite unveiled our In-Bay Automatic (IBA) conversion. Now, IBA car washes can be updated with the ModBrite mini express tunnel to increase our customer’s throughput and profits.

Dover Fueling Solutions (DFS) is part of Dover Corporation and is a leading provider of advanced energy dispensing equipment, electronic automation and payment systems, automatic tank gauging and subscription solutions to fueling and convenience retail customers worldwide. Comprised of brands Wayne Fueling Systems, Tokheim, OPW Fuel Management Systems, ClearView, ProGauge, Fairbanks, AvaLAN Networks and LIQAL, DFS is dedicated to offering a broad range of solutions that power vehicles, including conventional fuel and clean energy products that support gasoline, diesel, biodiesel and ethanol as well as LNG, H2, LPG, CNG and EV chargers.

For over 30 years, Lock America has been an innovative market leader in a wide range of industries that demand lock and security hardware. Lock America now offers gas dispenser locks that protect against credit card skimming devices and other theft. The easy-to-retrofit Lock America High Security System replaces the “universal” locks found now on most gas dispensers. This high security system, built around a non-duplicatable key and a virtually pick-proof mechanism, provides each location or unit with its own unique key code with the option of installing a master key system. These gas pump locks, based on Lock America’s decades of performance in the gaming and vending industry, retrofit virtually every dispenser.

OPW Retail Fueling makes aboveground and belowground fuel-handling products for both conventional, vapor-recovery and clean energy applications in the retail and commercial fuel markets. OPW Retail Fueling is part of OPW, a leading equipment manufacturer in the retail fueling, clean energy, fluid handling and vehicle wash industries. OPW has manufacturing operations in North America, Europe, Latin America and Asia Pacific, with sales offices around the world. OPW is part of Dover Corporation.

Formed by the combination of three leading brands (PDQ, Belanger, ICS), OPW Vehicle Wash Solutions is inspired by the power of partnerships. From our sister brands and valued associates to our revered distributors and industry partners, we are committed to working together to create significant revenue expansion for you and unforgettable wash experiences for your customers. OPW Vehicle Wash Solutions makes numerous vehicle wash solutions— including conveyorized tunnels, touchless and soft-touch automatics and drive-thru fleet washes. We’ll advise you on the best format for your location’s success—not push a one-size-fitsall approach. OPW is part of Dover Corporation.

For over 25 years, Tank Management Services has been processing SIR data for tank owners using Simmons management software for Dover Fueling Solutions (DFS) in Kansas, Iowa and Missouri. TMS is a wholly-owned subsidiary of Fuel True Independent Energy and Convenience Association and provides a complete line of services to help tank owners with UST/AST compliance: A/B operator training, class C training, leak detection for USTs, inventory control training, risk management and loss control as well as tank audits. TMS also provides motor fuel tax filers with electronic data interchange (EDI) for filing returns with the Kansas Department of Revenue.

Titan Cloud provides a leading Fuel Asset Optimization software platform to help customers effectively manage environmental compliance risk, reduce maintenance costs and increase revenue. Entrusted by a customer base that includes the biggest names in the retail petroleum industry and commercial fleet market, Titan's software platform currently monitors 50% of all U.S. consumer gasoline throughput and covers more than 85,000 facilities. Working with this extensive network enables Titan to provide its customers with compelling data and analytics that they can use to manage risk and fuel profit.

Established in 2001, Trinium Technologies is a premier provider of enterprise software tailored for container drayage and intermodal trucking industry. Since 2009, Trinium Technologies has been recognized as a leading developer of business software for fuel marketers and distributors. With a comprehensive suite of tools and features, our enterprise system is tailored to meet the unique demands of fuel and lubricants distributors and cardlock operators. In 2018, Trinium Technologies became part of WiseTech Global group. WiseTech Global is a leading developer and provider of software solutions to the logistics industry globally. Its customers include more than 17,000 of the world’s logistics companies across 174 countries.

INNOVATION KNOWS INNOVATION

From one innovator to another, OPW Retail Fuelingwith 135 years of innovation experience - congratulates Sheetz, Inc., and OnCue for winning Fuel Market News’ 2023 “Fuels Innovator of the Year Award.” The award is well-deserved as both companies have innovatively created an optimized retail-fueling experience.