Complete Story
04/23/2007
Ohio Soybean Farmers Salute Biodiesel Blenders
Ohio Soybean Farmers Salute Biodiesel Blenders
Two Ohio facilities receive grant to expand alternative fuel programs
COLUMBUS (April 23, 2007) The farmer-leaders of the Ohio Soybean Council (OSC) and the Ohio Soybean Association (OSA) congratulate Circleville Oil, located in Circleville, and American Ag Fuels, located in Defiance, on the Alternative Fuel Transportation Grants they were awarded by the Department of Development's Office of Energy Efficiency (OEE). The grants will allow the companies to expand their biodiesel blending facilities and build new terminals.
"It's rewarding to see the state react so positively toward renewable fuels like soy biodiesel," said Dan Corcoran, OSC Chairman. "And it's really encouraging to see biodiesel blenders like Circleville Oil and American Ag Fuels take their businesses to the next level with these grants. It shows the support that exists behind soy biodiesel, one of the fastest-growing markets for soybean farmers."
The grants awarded by OEE were made possible through Ohio's first-ever biofuels legislation, which was supported by Ohio soybean farmers through OSA's efforts. OSA, Ohio Corn Growers Association, Ohio Farm Bureau and Clean Fuels Ohio worked in tandem to promote the state's actions and to help build a strong foundation for Ohio's biofuels industry.
"We knew how important programs like this would be to the continued success of soy biodiesel," said Jeff Sollars, OSA Chairman. "And we wanted to keep soybean farmers in at the ground level to build upon their existing work with biofuel advances."
Currently Ohio produces more than 45 million gallons of soy biodiesel a year, nearly a fifth of the nation's total soy biodiesel production. Biodiesel production has grown significantly in the past five years, and efforts like the Alternative Fuel Transportation Grant Program have helped to subsidize the development of renewable fuels.
The Alternative Fuel Transportation grants are designed to advance the commercialization of alternative fuels. The goal of the program, according to OEE, is to increase the availability and use of biofuels for motor vehicles, specifically B20, a blend of 20 percent soybean oil and 80 percent diesel, and E85, a blend of 85 percent ethanol and 15 percent unleaded gasoline. In addition to the two biodiesel blending facilities, grants were also awarded to other various companies to establish 12 E85 retail stations across the state for consumers. These new stations capitalize on growing Ohio's biofuels industry for consumers and compliment the 50 already existing soy biodiesel retail stations.
"We had to think about how the grant program fit with our ideas for expansion of our biodiesel operation and the distribution of our biodiesel," said Steve Lankenau of American Ag Fuels. "We'll be using our grant funds in a strategic partnership with Sunoco Logistics in Dayton, where we'll be converting the facility to be able to handle biodiesel and making it available to anyone who uses the fuel right at the terminal."
Both American Ag Fuels and Circleville Oil were awarded the full funding of $180,000 for the installation of alternative fuel distribution facilities and terminals.
"We plan to enhance our current biodiesel storage capabilities and install an inline blending system," said Gary Scherer of Circleville Oil. "This project will make us one of the first fully blended wholesale locations. With the inline blending, we'll eliminate the need for splash blending and going to multiple locations to get the biodiesel and petroleum. The grant will also help us market our blended products to other wholesalers."
For Ohio soybean farmers, the growth of these two companies represents the significance of both OSC and OSA in building Ohio's soy biodiesel industry. By partnering together, OSC was able to help fund the research and development of soy biodiesel, and OSA took biodiesel efforts to the next level by ensuring continued support of biofuels among Ohio's leaders.
"These new terminals are a huge benefit to soybean farmers," said Sollars. "They help expand the availability of soy biodiesel and they show how, through the efforts of both the checkoff and association, new markets for Ohio's soybeans can be built and maintained."
Corcoran agrees, "Soybean farmers, their checkoff and their association were funding soy biodiesel research and promotion efforts more than 10 years ago. Now they have a chance to see the fruit of their labors and enjoy the success that the biodiesel industry is having."
The soybean checkoff has also partnered with many of the soy biodiesel distributors and retailers to expand the promotion of alternative fuels.
"We've worked very closely with the Ohio Soybean Council and their farmer-leaders to spread the word about soy biodiesel," said Scherer. "Together we're expanding the reach of biofuels in Ohio and providing diesel users with information about using alternative fuels."
American Ag Fuels was quick to attribute some of its success to Ohio farmers as well.
"Farmers were the early adopters of soy biodiesel," said Lankenau. "When they hit the fields, we get really busy! But it's more than just an increase in business for us, it's a chance to see the cycle come full circle farmers using the products they grow to fuel their equipment."
For more information on soy biodiesel, including retail and distributing locations, please visit http://www.soybiodiesel.org/.
The Ohio Soybean Council is governed by a 17-member volunteer farmer board, which directs the Soybean Promotion and Research Program. The program's primary goal is to improve soybean profitability by targeting research and development programs through the investment of farmer-contributed funds.
The Ohio Soybean Association is governed by a 24-member volunteer farmer board dedicated to education and promotion, as well as to uniting producer interest through support of legislative activities beneficial to the Ohio soybean industry.
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