Renewable Energy Group Inc. announced a partnership between its blended fuels division and CyRide, the transit agency serving the city of Ames, Iowa, and Iowa State University, to supply biodiesel-blended fuel in 2015 for its CyRide bus fleet.

REG Energy Services LLC began providing 350,000 gallons of fuel with biodiesel blends of up to 20 percent for CyRide’s 78 buses Jan. 1. The agreement is REG’s first with a municipality.

“We want to thank CyRide for choosing REG Energy Services as its 2015 fuel partner,” said Don Nelson, REG director of regional sales. “As REG Energy Services expands, we look forward to the opportunity to work with municipalities to provide a high-quality product that provides for energy and food security, job creation and environmental stewardship.”

Ames will increase its use of biodiesel from previous years under the agreement, which provides buses with higher blends of the advanced biofuel during the summer months. The CyRide fleet serves an average of 40,000 riders daily and operates approximately 1.2 million miles a year. The city will see carbon dioxide emission reductions of as much as 658 metric tons in 2015 with the increased biodiesel blends.

REG Energy Services serves customers in the Midwest and Northeast with biodiesel-blended fuel, ultra-low sulfur diesel and heating oil. Fuel for CyRide will come from the division’s Magellan terminal in Des Moines.

“We are pleased to be able to cost effectively operate this essential community service in an environmentally sustainable manner using biodiesel fuel,” said Sheri Kyras, Ames transit director. “Everyone benefits from this partnership.”