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Saturday, December 3, 2022

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Heating Fuel Distributors Awarded Biofuel Grants

by Samuel Diamond


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Infrastructure improvements will boost sales by over 100 million gallons per year

On Earth Day the U.S. Department of Agriculture (USDA) announced $18.4 million in awards through the Higher Blends Infrastructure Incentive Program (HBIIP), an initiative launched to increase sales and use of higher blends of ethanol and biodiesel.

Since the HBIIP was first announced in early 2020, NEFI has advocated for wholesale and retail heating oil marketers to be included and seriously considered for grants under the program. It would appear that those efforts have paid off as the HBIIP has awarded over $5.2 million in cost-sharing grants to five heating fuel suppliers in the Northeast, all of which are NEFI members.

Sprague Operating Resources was awarded $149,187 for projects in Quincy, Massachusetts, which are expected to increase biodiesel sales by 8,320,000 gallons per year.

Townsend Oil Company was awarded $300,000 for infrastructure improvements in Manchester and Somerset, New Hampshire and Danvers, Massachusetts, which are projected to increase biodiesel sales by 8,161,903 gallons per year.

Westmore Fuel Company was awarded $227,000 for projects in Port Chester, New York, which are expected to increase biodiesel sales by 5,081,926 gallons per year.

Northville Industries Corporation was awarded $757,983 for infrastructure improvements in Holtsville, New York, which are projected to increase biodiesel sales by 38,535,222 gallons per year.

Global Companies was awarded $3,806,637 for projects in Albany and Newburgh, New York; Providence, Rhode Island; Bridgeport, Connecticut; and Revere, Massachusetts, which are expected to increase biodiesel sales by 51,260,490 gallons per year.

Altogether, these infrastructure improvements are projected to increase annual biodiesel sales in the Northeast by 111,359,541 gallons.

“The USDA is recognizing our industry’s efforts to cost-effectively reduce emissions,” said NEFI President & CEO Sean Cota. “More can be done with the right incentives and we will continue to educate the Biden administration, federal agencies, and members of Congress that our industry is a valuable part of the solution to its environmental priorities – not the problem.”

*CORRECTION: An earlier version of this article stated that the projected increases in biodiesel sales would be enough to transition more than 556 million gallons of heating oil to B20 blends. It has come to our attention that the projected increase represents sales of blended fuels, i.e., B20 and higher biodiesel blends. Therefore, the projects described above could transition approximately 111 million gallons of heating oil to B20 or higher blends, not 556 million gallons as earlier stated.


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