Oilheat industry embraces Bioheat, opens door for 450 million gallon market

By | October 14, 2009
At the national oilheat industry policy summit held in mid-September in Baltimore, oilheat leadership from Maine to South Carolina set the industry on a new cleaner, greener and more sustainable course. At the event, oilheat leadership, including National Oil Heat Research Alliance, the New England Fuel Institute, and Petroleum Marketers Association of America, approved a statement formally embracing cleaner burning fuels such as Bioheat, and endorsed an ultra-low sulfur standard and solar technology.

The historic collaboration of assembled oilheat associations and stakeholders formally adopted long-term goals, which include expanding the availability of Bioheat. A resolution calls for changes to heating oil, part of which directs that all heating oil will be mixed with a bio component by July 2010 to ensure that at least 2 percent of the fuel is renewable, with goals to increase levels over time.

"It is an exciting time for the industry," said Peter Carini of Champion Energy of New York. "As an industry, we face many challenges, but most of them can be met if we embrace this exciting opportunity to create a new product that will be environmentally responsible and competitive, ensuring that our industry will be a part of the solution to the energy security and climate change challenges facing our nation."

This news means a greatly expanded market opportunity for biodiesel producers. At a 5 percent blend, the Bioheat market has the potential to increase biodiesel demand by 450 million gallons annually.
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