The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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www.fueloilnews.com | FUEL OIL NEWS | NOVEMBER 2016 15 tically produced and renewable. Being made from byproducts—whether they be agricultural byproducts or other feedstocks—speaks to biodiesel's sus- tainability and growing acceptance, Devine says. "Its environmental benefits are sig- nificantly better than that of heating oil or diesel fuel," Devine says. "And because of the advent of the Renewable Fuel Standard and the blender's tax credit, there have been many moments when the price of biodiesel has been less than the cost of the heating oil or diesel that it is blended into. These are some of the top reasons why we've seen entities within the supply chain integrate and embrace biodiesel as a fuel." The Renewable Fuel Standard was passed in 2005, and took effect in 2006. The standard made it mandatory for producers and suppliers of motor trans- portation fuels to include a percentage of renewable fuel in their products. The RFS has created an opportunity for marketers to take advantage of subsidies that are associated with using renewable fuels. There are equipment performance advantages to be gained from burning bio- diesel blends, Devine says. Biodiesel acts as a solvent, helping to clean heating systems, he says. That means the cost of service-related calls can be mitigated by a biodiesel blend, Devine says. "Most of today's full service dealers are offering service contracts," he notes. "If you can reduce the number of fuel oil service calls, you are providing some real value-added benefits to the company and to the consumer." Biodiesel is not without its challenges, the biggest being that its cold-flow prop- erties aren't as strong as fuels that it is blended into. Higher-level blends tend to gel or freeze at higher temperatures than conventional diesel. The actual tem- perature at which biodiesel is affected depends on the type of oil or fat from which it is made. "We always recommend companies use a 'crawl before you walk' mental- ity when it comes to biodiesel blended fuels," Devine says. "Clearly a heating oil marketer in Long Island isn't going to face the same challenges as a heating oil marketer in Maine. That said, if you are utilizing good fuel practices—monitor- ing your cold flow, etc.—you shouldn't have any issues. But people need to be mindful of blending too aggressively." Another common mistake is mis- placed confidence in biodiesel that meets 'ITS ENVIRONMENTAL BENEFITS ARE SIGNIFICANTLY BETTER THAN THAT OF HEATING OIL OR DIESEL FUEL.' —Michael Devine, Amerigreen Energy, Lancaster, Pa.