Alternative Fuel Distributors, of Wilmington, Del., said that it plans to construct and operate 1,000 convenience stores on the East Coast that will strictly provide E-85 and other alternative automotive fuels.

The company plans to have the stores up and running within the next three years, with the first 100 stores opening by the first quarter of 2009 in Pennsylvania, New Jersey, Maryland and Delaware.

The stores, according to the plan, would all be company owned and would be marketed under the “Go Green Station” retail brand. It estimates that E-85 gasoline is expected to sell for $2.25 to $2.50 per gallon, as opposed to the projected $4 per gallon for regular gas.

Alternative Fuel Distributors will create an IPO to fund the venture. The company was organized in June 2007 to “develop, construct own and operate convenience stores dedicated to supplying alternative fuels to retail customers,” it said in a news release.

Current plans call for the ownership and operation of alternative fuel terminals in New Jersey, Pennsylvania and Maryland to supply fuels to company-owned convenience stores and wholesale customers from Washington, D.C. to New York.

Today, there are approximately 1,500 E-85 fueling stations located throughout the United States compared to the approximately 150,000 gas stations. There are less than 20 E-85 stations located between New York and Richmond, Va.

With the opening of the 1,000 "Go Green Station" convenience stores, Alternative Fuel Distributors will provide a competitive automotive fueling alternative to regular gasoline for the millions of flex fuel vehicles currently on the road. The company expects to be one of the largest wholesale distributors of biodiesel products in the U.S.

The company said it will focus on selling reduced-priced biodiesel products to fleet operators, school districts, municipalities and home heating companies.