New partnership forged as NYC prepares for Oct. 1 Bioheat mandate
September 13, 2012
BY Ron Kotrba
Bioheat veteran Michael Devine and his company Earth Energy Alliance Inc. struck an agreement with Amerigreen Energy to help New York metropolitan fuel dealers thrive as New York City’s biodiesel-blended heating oil mandate goes into effect in just weeks.
The companies say the new relationship will help support fuel dealers with Amerigreen’s brand offering throughout the metro New York City marketplace. Not only will Amerigreen be able to supply biodiesel and Bioheat blends to the city’s fuel dealers, but now it can support marketing and advertising efforts to use Bioheat so those dealers can revitalize and grow.
Earth Energy Alliance CEO Michael Devine said as dealers prepare to distribute biodiesel-blended heating oil come October, some will simply move B2 or B5 and carry on with business as usual; but others look to this as an opportunity to rebrand their images. “It’s about changing from their grandfather’s heating oil to a new product”—one that’s cleaner and has a domestic, soy-based component, he said.
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Amerigreen sales and marketing director Steve McCracken told Biodiesel Magazine that Amerigreen moves between 15 and 20 million gallons of neat biodiesel a year from distribution points in Pennsylvania, New Jersey and New York, blended in concentrations of 2 to 20 percent, depending on demand.
The state of New York offers a personal tax credit on biodiesel-blended heating oil, a penny per percentage point (up to B20) for every gallon bought. Devine said legislation is being considered in Albany to expand the city’s 2 percent biodiesel mandate to the entire state.
“Amerigreen represents an opportunity for retail dealers to do things they can’t do on their own,” McCracken said. “The distributors’ success is our success.”
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The partnership, which pulls together two early adopters of Bioheat and biodiesel, will match Devine’s biofuel knowledge and his company’s best practices with Amerigreen’s physical fuel supply industry experience and custom marketing strategies.
“Michael’s been a key player in the expansion and use of Bioheat,” McCracken said. “The relationship complements what fuel dealers are looking for—fuel supply, marketing support and the knowledge of how to develop a successful strategy.”
The companies say New York City fuel dealers will now have a single source for supply, marketing and business development.
“The Amerigreen business model believes that building a renewable energy brand requires more than simply supplying biodiesel,” said Devine. “The Amerigreen Bioheat distribution strategy provides the petroleum marketer with the highest quality biodiesel, insuring for operation peace of mind, plus an in-house marketing team that can customize a sustainable and profitable consumer sales strategy. Earth Energy Alliance is extremely proud to join forces with Amerigreen in developing the New York City biodiesel market.”
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