Most if not all of the biodiesel supply and infrastructure is already in place to support a transition to B20 Bioheat® across the entire Northeastern market. Today, regional biodiesel producers can account for roughly 20 percent of the 800 million annual gallons needed to reach a B20 blend, while remaining supply falls within the three billion gallon capacity of North American producers.
“In 2019, North American production capacity was about 3 billion gallons, and only 1.7 billion gallons were actually produced,” said Kearney manager Yuri Kopylovski. “This means that with existing plant infrastructure, we have about a 73-percent increase in production that could be made without any additional capital investment or reliance on imports from outside North America.”
In other words, the liquid heating fuel industry is ahead of the game when it comes to building out the necessary infrastructure to support an immediate transition to higher Bioheat® blends. Short term investments to increase transportation capacity from the Midwest to the Northeast will need to be supplemented by longer term investments aimed at increasing local production, upgrading bulk terminal assets, and modifying residential heating equipment, if necessary, with the introduction of higher blends.