Consumers to find more availability of biodiesel blends

Posted November 24, 2009

Agriculture officials in Minnesota and South Dakota are applauding a decision by a petroleum distribution company to increase the availability of winter biodiesel in their states. Minnesota Agriculture Commissioner Gene Hugoson and South Dakota Agriculture Secretary Bill Even say the decision of Magellan Midstream Partners, L.P., to install winter biodiesel blending equipment at their Sioux Falls terminal is a win-win situation for farmers and biodiesel consumers in both states.

Commissioner Hugoson says the Minnesota Biodiesel Task Force has been working to find a company that would be willing to install biodiesel blending equipment at a major fueling terminal to serve southwestern Minnesota.

"Magellan has been a good partner for the state of Minnesota as we developed our biofuels programs," said Hugoson. "Magellan has supported the biodiesel industry since its infancy and they have been instrumental in ensuring the safe and effective blending of ethanol and biodiesel."

South Dakota Agriculture Secretary Even says the facility will allow diesel consumers to gain better year-round access to quality biodiesel blends. "This decision will have positive implications for smoother distribution of biodiesel blends in South Dakota, Minnesota and surrounding states," Even said. "This facility is another step toward reducing our dependency on foreign oil."

Magellan's COO, Mike Mears said "our multi-million dollar investment in biodiesel infrastructure at the Sioux Falls terminal comes at a time when our customers are looking for state-of-the-art systems that accurately, efficiently and safely blend biodiesel into diesel fuel."

No state funds were used for the project. Magellan officials say installation of the new equipment at the Sioux Falls terminal is expected to be completed in 2010 with winter biodiesel blends available by next fall.

SOURCE: MINNESOTA DEPARTMENT OF AGRICULTURE