are ambivalent about the industry’s
commitment to move towards
B20, never mind Net Zero by 2050,
continuing to covertly blend while
keeping the industry’s best-kept
secret to themselves.
Some maintain the reason doubt
hangs overhead like a raincloud
is because the blended fuel is still
not widely available. Although
blended fuel is often quietly spoken
about, many times the commentary
remains negative. Change is only
going to accelerate from this point
forward; 2023 is a few years away
and policy leaders are showing no
signs of retreating from their desire
to move your customers to electric
heat pumps or anything other than
a liquid fuel.
Natural gas and propane are not
safe havens because neither can
alter their carbon score favorably.
This leaves market development
opportunities for, yes, low carbon
liquid fuel, which will for the next
decade be B20—80% ultra-low
sulfur heating oil, 20% biodiesel. By
accurately anticipating the future,
you can see more than enough reason
to make this market disruption
your biggest competitive and personal
advantage. Now is the time to
circle the wagons, align with your
industry leaders and get working
on establishing the baseline for this
transition from carbon to fuels that
will stand the test of time.
Addressing concerns
For those who continue to doubt the
industry’s desire to transition to a
better, cleaner and more marketable
fuel, you should be aware that
any perceived technical challenges
associated with blends up to B20
have been successfully addressed.
The National Oilheat Research Alliance
(NORA) and other industry
groups have exhaustively studied
and written about their efforts and
have declared that there are no
technical impediments that prohibit
broad-based deployment of B20
today. None!
If you’re in doubt, contact NORA
(noraweb.org) and ask for copies
of these studies, which address its
wide-ranging studies of pumps,
yellow metals contamination, tank
sedimentation, cad cell performance,
microbial contamination and pour
point performance, all of which indicate
no increase in operational issues
other than those already being
endured with conventional ultra-low
sulfur fuel use.
While NEFI continues to build
industry-wide consensus to align the
goals of the Providence Resolution,
the upstream has been carefully
evaluating supply strategies that
can make B20 a reality. Moving
an industry, which is still not
adequately prepared logistically to
deliver B20 efficiently and ratably
by 2023, takes careful planning by
biodiesel producers, fuel wholesalers,
marine, rail logistic experts and
hedging strategists. At the present
time, many of these groups have
been entertaining the question: How
will 700 million gallons of biodiesel
be moved throughout New England
and the Mid-Atlantic States from
both domestic and foreign production
sources? The preliminary discussions
have clearly revealed the challenges.
Interested parties are now working
to address and overcome potential
supply roadblocks. The good news is,
nothing was viewed impossible, but
planning was a prerequisite for our
collective success.
Just in time
For the past decade, the regional
supply chain has managed supply in
a just-in-time methodology, bringing
in product to satisfy the Massachusetts’
Alternative Energy Portfolio
Standard (APS) program, as well as
pure arbitrage strategists seeking
to reduce tank product costs. This
works for intermittent opportunities
but not as a system-wide pull.
To blend 20% system-wide, the
rules of the road changed when we
made the Net Zero by 2050 commitment
last September in Providence.
When it comes to supply, storage,
blending and distribution preparation,
I would compare this planning
with a baseball pre-game meeting—
when the managers stand at home
plate and speak with the umpires to
go over the rules and regulations for
the day. It’s a work-in-progress, but
it is progressing rapidly.
With the industry’s technical
analyses successfully completed for
20% and higher blends now under
review to meet Stage II commitments
under the Providence Resolution,
supply discussions are in
full swing. As mentioned earlier,
sharing knowledge helps to reduce
the potential anxiety of a customer
worried that their fuel is changing.
They worry not only about the
performance, but also the price. Will
my price be higher?
The simple answer is: It’s evolving
to meet rapidly changing governmental
policy directives nationally
and in the neighborhoods where
you live. A fuel dealer adopting B20
today is a fuel dealer preparing for
the future. Adopting B20 sends a
strong message that you are looking
out for your customers and helping
them maintain the same equipment,
with no additional capital
outlay. Meanwhile, policy leaders
are anxiously trying to get those
same homeowners to spend $20K+
to retrofit a 1700 sq ft home. Really,
is that necessary?
We have Step No. 1 of three in our
pockets. We need you to step in and
deliver both the product and message
to your customers: We are here
to stay. Why? Because our product
is the intelligent choice today and
for the long-term to provide families
with clean, efficient and environmentally
acceptable home comfort.
For more information, marketing
tools, guidance or just to share an
observation please contact Paul
Nazzaro, 978-880-5338 or:
paulsr@yourfuelsolution.com. ICM
The Providence Resolution made by
NEFI last September sets the pace for
the industry to convert to biofuels.
ICM/July/August 9