By Andi Anderson
The U.S. Department of Agriculture (USDA) has recently allocated $8.8 million in grants to 22 states under the Higher Blends Infrastructure Incentive Program. This initiative aims to expand the sales and infrastructure of biodiesel, a renewable fuel derived from sources such as vegetable oil, animal fats, or used cooking oil. The grants are particularly focused on advancing biofuel infrastructure for ethanol blends like E15 and E85, as well as biodiesel's B20 blend, which is compatible with diesel vehicles.
The funds will support various projects, including the installation of new biodiesel dispensers and storage tanks, upgrading existing infrastructure to accommodate biodiesel, and educating consumers about biodiesel benefits. Bulk Petroleum Corp., a fueling station owner, secured the largest grant of $5 million. This funding will be utilized to install 33 B20 dispensers and 22 biodiesel storage tanks across 24 fueling stations in Indiana, Iowa, Kentucky, Michigan, and Wisconsin. The comprehensive project, which also involves ethanol dispensers and storage tanks, is anticipated to increase Bulk Petroleum's biofuel sales by 7.84 million gallons annually.
Tristar FLC Inc., based in Fontana, California, secured the second-largest grant of $3.5 million. The company plans to use the funds to establish infrastructure for expanding renewable fuel use and sales, with a focus on increasing biodiesel sales by 24 million gallons per year. Their project involves constructing a high-efficiency transload facility capable of receiving, storing, and distributing biodiesel.
The grants are expected to have positive effects on rural communities by creating jobs, stimulating the economy, reducing greenhouse gas emissions, and enhancing air quality. Biodiesel is considered a cleaner-burning alternative to traditional diesel, emitting fewer greenhouse gases. The USDA's Higher Blends Infrastructure Incentive Program, a $100 million initiative established by the 2020 farm bill, underscores the commitment to increasing the availability of higher blends of ethanol and biodiesel in the United States.
This investment in biodiesel aligns with the broader goal of promoting clean, renewable fuels to diminish reliance on fossil fuels. The grants signify a positive step forward for the renewable fuel industry, contributing to job creation, economic growth, and environmental benefits.
Photo Credit: vista-mipan
Categories: Iowa, General