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Biodiesel Logistics

Posted in: Truckstop Business, Fuel and Trucking, Biodiesel

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/// Guest post by contributor Jon ScharingsonRenewable Energy Group

Accessibility to quality biodiesel at each level of the supply chain — producer to the retailer — has become simpler in recent years. With more high-production biorefineries and improved logistics, biodiesel producers can more readily provide product to distributors and retailers, including truckstops and travel plazas.

For truckstops and travel plazas, having their own on-site biodiesel storage tank can be a crucial component of these biodiesel logistics.

Having a tank and blending system at the truckstop will provide maximum flexibility. This will allow them to purchase biodiesel directly from the producer, helping to keep costs down, maximize margins and achieve flexibility in selecting what blends they wish to offer.

Adding the ability to adjust blend levels can be a simple yet effective way to make the most of biodiesel offerings at a truckstop and travel plaza. If an investment has been made in a blending system, operators can simply adjust the blend level based on economics.

Even if a truckstop and travel plaza does not have a blending system in place, the improved logistics in the supply chain allow for the quick delivery of product. Jobbers are becoming more efficient at providing a diverse array of blends and along with biodiesel producers, are continually elevating their efforts to provide all-around support.

We can help truckstop and travel plazas navigate through getting their blenders license and any of the state regulatory requirements that are necessary to market biodiesel. REG can help them understand the state incentives that may be available, as well as any financing that might be available for blending systems. We love to talk to people about the significant opportunity they have to enhance their gross margins per gallon.

The logistics of biodiesel — from the feedstock suppliers all the way to the end users — have seen vast development in recent years. Certified biodiesel, such as REG-9000® biodiesel, is increasingly available to retailers across the country, and the viability of selling biodiesel blends at truckstops and travel plazas has also steadily grown along with the industry. 

/// Read more guest posts on biodiesel posts here

{Guest Post} Guest post provided by NATSO Chairman's Circle member Jon Scharingson, Renewable Energy Group. Renewable Energy Group® is a leading North American biodiesel producer with a nationwide distribution and logistics system. With more than 210 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace. Learn more about Renewable Energy Group.

The opinions and advice given by guest post contributors are not necessarily those of NATSO Inc. The posts should not be considered legal advice. Qualified professionals should be sought regarding advice and questions specific to your circumstances.

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About the Author

Jon Scharingson

Jon Scharingson