What to Consider Before Making the Decision to Offer Biodiesel
by Jon Scharingson (Renewable Energy Group, Inc./Convenience Store Decisions) Whether or not to sell biodiesel can be a significant decision for a convenience store owner. Convenience store owners need to determine what will work best for their operation and how they can maximize their profitability through the use of biodiesel.
Here are a few things to consider:
Tank and pump availability
First and foremost do you have the storage tank and pump capacity to add a biodiesel blended fuel to your product offering? If you currently offer diesel fuel, then adding biodiesel blended fuel is relatively simple — just order the biodiesel blended fuel from a reliable supplier. …
Selecting a reliable supplier
When selecting a biodiesel partner it’s important to note that biodiesel must adhere to stringent quality tests by ASTM D6751 standards — including cold weather performance indicators. …
Blending
For convenience stores, having an on-site biodiesel storage tank can be a crucial biodiesel logistics component. Having a tank and blending system at the convenience store will provide maximum flexibility. This will allow you to purchase biodiesel directly from the producer, helping to keep costs down, maximize margins and achieve flexibility in selecting what blends you wish to offer. …
Blend level
In every state, biodiesel can be blended with traditional petroleum diesel up to 5%; at this B5 blend level, the fuel still meets ASTM D975 fuel specifications and does not require any additional labeling at the pump. Once retailers begin to sell blends from B6 to B20, labeling is required. …
Economic incentives
Many states offer economic incentives to retailers who offer biodiesel blended fuel. If a convenience store owner operates locations in several states, they need to be aware of each state’s laws.
In Illinois, for example, many retailers blend at B11 levels and above year-round to help take advantage of the state excise tax abatement. READ MORE
