Gaining an Edge with Bioheat® Blended Fuel

Hart Home Comfort has evolved many times over its history. One of its more recent changes is blending heating oil with biodiesel to take advantage of the economic and environmental benefits. 

The Biodiesel Difference

Hart Home Comfort has come a long way from operating a fledgling company in the back of a gas station. Through a blend of patience and industry expertise, Ray Hart Sr. has evolved his business into a leading heating oil company in the country’s largest metropolis — New York City.

Hart was introduced to the heating oil business through part-time COD deliveries. Purchasing a terminal on Long Island then provided an avenue for him into the transportation market.

In 2006, an employee recommended that Hart Home Comfort explore biodiesel. Capitalizing on his existing infrastructure, Hart moved ahead and has never looked back. For heating oil customers, the company began by offering Bioheat® blended fuel, which is a blend of heating oil and biodiesel. Hart Home Comfort started with a B2 blend before quickly moving up to B20. 

“When we started, we were attracted by biodiesel being an American-made fuel. We also felt we had a responsibility to future generations to be proactive in delivering a cleaner fuel for the environment,” Hart says. “Now, Bioheat® also gives us an economic advantage.” 

It also gives their customers an economic advantage in the form of a New York state tax credit. That credit returns to the customer 1 cent for every 1 percent of biodiesel per gallon blended into traditional heating oil. 

“Claiming the tax credit is a very easy process for our customers, and it gives them another reason to embrace Bioheat® blended fuel in addition to the environmental and performance benefits,” Hart says.

Hart Home Comfort only offers Bioheat® blended fuel. From April 2017 to April 2018, the company sold over 8 million gallons, with more than 2 million gallons of that being biodiesel. Its New Hyde Park terminal thru-puts approximately 13 million to 15 million gallons of heating oil annually and another 4 million to 5 million gallons of biodiesel.

“We want to market a good, reliable Bioheat® blended fuel product,” Hart says. “With the introduction of low-sulfur heating oil and the near-zero sulfur content of biodiesel, it gives us a really good marketing edge.”   

The Bottom Line

Economics

Bioheat® blended fuel gives the company a financial advantage

Business

Improved customer satisfaction thanks to:

  • The state tax credit, which puts money back in customers' pockets
  • Offering a cleaner burning fuel

REG's Fuel Services

AN INTERNATIONAL COMPANY KNOWN FOR PRODUCING FUEL NOW DELIVERS FUEL IN ITS OWN BACKYARD.

REG fuel being delivered

 

The fuel delivery service of Renewable Energy Group (REG) has a 90-year tradition, even though it’s a new part of the company.

How so?

In 2018, REG acquired Keck Energy, a Des Moines-based company that had been supplying fuel to central Iowa farmers, fleets, municipalities, convenience stores and other customers since 1927. REG, headquartered in Ames, Iowa, is North America’s largest producer of biodiesel and a provider of blended fuels.

“REG brings technology — like its technical service team, labs and R&D work — and extensive experience with biofuels. Combined with Keck’s longevity and customer service, it was a really good match,” says Joel Collinson, Manager, Fuel Operations, REG, who started working at Keck Energy in 1997.

The emphasis remains on providing outstanding customer service and delivering high-quality, cost-effective products.

“People have a choice every day on how they buy fuel, where they buy fuel,” says Adam Sander, Director, REG. “So we understand we have to service our customers in a great fashion every day and earn the business on a daily basis.”

REG'S FUEL SERVICES
  • Delivers in central Iowa
  • Offers gasoline, ethanol blends, diesel, biodiesel, biodiesel blends and additives
  • Delivers loads from 250 gallons to 8,500 gallons
  • Provides tanks and bulk fuel storage
  • Continuing a 90-year tradition

EXTENSIVE FUEL OFFERINGS

REG delivers diesel, gas, various blends of biodiesel and ethanol, and additives throughout central Iowa. Customers include farms, private fleets, public fleets, convenience stores and some smaller fuel users like golf courses.

In addition to its fleet picking up fuel at terminals, REG has a bulk plant in Des Moines for storing different grades of gasoline, diesel and biodiesel.

“This helps ensure that we have supply on hand and that our trucks can get it to our customers in a timely manner,” Sander says.

A product customers are increasingly interested in is a higher blend of biodiesel such as B20, which is 20 percent biodiesel and 80 percent petroleum diesel.

“The petroleum business has morphed,” Collinson says. “More fleets, and the general public, want to help the environment. Biodiesel helps reduce emissions and ash output, and it also has higher Cetane and lubricity than petroleum diesel.”

BESIDES FUEL DELIVERY, REG OFFERS:

Fuel tank rental — Tanks range from 500 to 2,000 gallons and are especially popular with construction companies, as well as with operations that want the efficiency of filling up at their home base but don’t want to invest in a larger tank of their own.

Inventory management — Both manual monitoring of tanks and a system by which tank levels can be tracked remotely.

Pricing options — Including fixed-price or indexed contracts.

YOUR FUEL PARTNER

Ultimately, it’s providing better customer service and forming close relationships that differentiates REG from the competition.

“We’re a smaller company for a gas and diesel supplier,” says Tim Munford, an REG truck driver. “You’re going to know the drivers’ first names, you’re going to know us as people, and we’re going to know you and help you with your tanks and make sure everything’s going well.”

That personal touch is combined with experience, expertise and quality.

“Choosing REG as a fuel supplier makes a lot of sense because we have the experience, and we have fuel solutions for all types of customers,” Sander says.

“Their businesses depend on getting high-quality fuel that will allow them to run their operations at a very cost-effective price. That’s what we’re dedicated to doing on a day-in and day-out basis. We’ll do whatever it takes to ensure our customers get what they need.”

 

 


 

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