NBF and Industry Partners Displace Nearly 10 Millions of Gallons of Petroleum-based Diesel

May 29, 2015

2009 National Biodiesel Foundation Biodiesel Infrastructure Project

Report Date: December 22, 2014

Period of Performance: 10/01/2009 through 09/30/2014

The National Biodiesel Foundation (NBF) worked with industry partners to displace nearly 10 millions of gallons of petroleum-based diesel with biodiesel by installing or modifying terminals throughout the United States (US). The original grant was to install seven terminals, but with DOE’s approval and using existing grant funds, the project provided funds for an additional terminal.  Partners included:

1.            Amerigreen (New York)

2.            Buckeye Terminals, LLC (Pennsylvania)

3.            Crimson Renewable Energy/Altitude Fuel (California)

4.            GrowMark (Iowa)

5.            Harms Oil Company (South Dakota)

6.            Renewable Energy Group, Inc. (REG) (Iowa)

7.            Westmore Fuel Company, Inc (New York)

8.            Western States Oil (California)

 The attractive aspect to automated blending terminals was, and still is, the ability to offer a variety of blend stocks.  NBF’s partners marketed and promoted biodiesel through press events, working with local Clean Cities Coordinators and at local events when possible. Biodiesel was marketed using the same methods as other petroleum products, and was viewed by marketing teams as an economic strategy in low level blends. Biodiesel at blends up to 5% do not require labeling and are seen as transparent to end users. Partners sought to sell a 20% blend whenever possible and contract with local government and school bus fleets, among others.  By offering a variety of blend stocks, NBF and its partners had the ability to displace petroleum in the market.

The primary goal of this project was to displace 86 million gallons of petroleum based diesel with biodiesel by installing seven terminals. Although the project installed eight terminals, it only resulted in displacing approximately 9.7 million gallon.  However, the project (through the Harms Oil installation) enabled the state of Minnesota to increase its biodiesel mandate from 5% to 10%, increase biodiesel demand at other MN terminals by an addition 25 million.  Further, this state mandate will grow demand to 120 million gallons annually by 2018, if the state’s biodiesel mandate is fully enforced.  None of this would have been possible without the Harm’s Oil terminal funded under this grant. 

The total estimated cost of this project was $2,518,897.  The costs shared by project partners were $1,789,136 (71%).  DOE funded $729,761 (29%).