Minnesota consumers of biodiesel will have more options after Renewable Energy Group Inc. (REG) announced Oct. 31, 2014, plans to expand its biodiesel blends offering in the Midwest.
REG will offer ultra-low sulfur diesel blended with biodiesel at Minnesota terminals in Alexandria, Mankato, Roseville and Rochester and Iowa terminals in Mason City and Des Moines. This adds ULSD to REG’s existing biodiesel offerings at those locations.
Mike Youngerberg, Minnesota Soybean senior field director, says REG’s announcement throws another option into the mix when it comes to buying biodiesel.
“I think it is great for competition,” Youngerberg said. “It keeps people pricing biodiesel competitively in the market.”
This is the first time REG Energy Services will offer biodiesel fuel blends along the Magellan Midstream Partners terminal system in Iowa and Minnesota. Iowa has a 4.5 cent per gallon incentive for retailers utilizing blends of 5 percent and above. Minnesota has a B5 requirement in the winter when using ULSD and B10 during the summer months.
“This just adds another level of opportunity to purchase biodiesel at the local level at the best prices possible,” Youngerberg said.