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Biodiesel blending and storage comes to Colorado

10th April, 2008

A new biodiesel blending and storage facility has opened in Aurora, Colorado, increasing the availability of the cleaner-burning fuel for the area.

Pipeline company Magellan Midstream Partners owns the facility, which is located at an existing petroleum terminal.

Minnesota-based energy and grain-based foods cooperative CHS will market and distribute the fuel.

'By combining a biodiesel blending and storage facility with Magellan's existing infrastructure, we can get blended fuel to our customers faster and more efficiently,' Drew Combs of CHS announces. 'Rack blending as opposed to splash blending provides more accuracy and higher quality as well as one-stop loading with a single bill-of-lading.'

The recently passed federal Energy Bill includes an expanded Renewable Fuels Standard, which for the first time will require more renewable fuel to be incorporated into the US diesel market. Biodiesel and other renewable fuels depend on petroleum infrastructure, such as the Magellan terminal, for easy distribution.

The new biodiesel-blending facility has an 84,000 gallon tank and will make biodiesel blends available to petroleum distributors. Those customers will likely include area truck and car fleets and could lead to more public pumps.