“Biodiesel has opened a lot of doors for us.” That’s what the vice president of Sapp Bros., Inc. says of the renewable fuel’s effect on his company’s travel center and fuel wholesale businesses.
The Economic Advantage of Biodiesel
Sapp Bros., Inc. has experienced the benefits of biodiesel with two different businesses.
One is Sapp Bros. Travel Centers, which operates 17 travel centers stretching from Salt Lake City to Pennsylvania, many of them along Interstate 80. The other is a fuel wholesale business, Sapp Bros. Petroleum, which sells petroleum diesel, biodiesel, biodiesel blends, and other fuels and lubricants.
“Economically, biodiesel is a good thing to do,” says Kevin Cassidy, Vice President of both the petroleum and travel center businesses. “It’s also a sustainable fuel. It’s made us more competitive.”
Biodiesel economics spur interest
The company’s travel center in Peru, Illinois, offers a case study in these benefits. Located 100 miles west of Chicago on I-80, Sapp Bros. Peru is a full-service travel center that sees 750,000 customers a year.
It was one of the first travel centers in the state to offer biodiesel blends when it introduced the alternative fuel in 2005, according to Cassidy.
“The state of Illinois established a sales tax exemption on blends of B11 and higher that still stands, and it made sense to do it,” he says. “The B100 was priced attractively, below what our petroleum diesel cost. And we were able to offer a B11 blend at 8 cents per gallon below our No. 2 ultra-low sulfur diesel (ULSD). It went over very well with our customers.”
The infrastructure changes needed to introduce biodiesel were relatively simple. Sapp Bros. Peru converted a 12,000-gallon underground storage tank to hold straight biodiesel, or B100. Then as now, biodiesel is piped over to a loading station where petroleum fuel trucks come in, and Sapp Bros. uses splash blending by loading the B100 into the top of a truck’s tank. The truck then unloads the blended fuel into tanks that feed the diesel islands.
“To get started with biodiesel, our infrastructure upgrades were minimal,” Cassidy says. “It was around an eight-month payback on the cost.”
Cassidy is able to easily adjust the blend level and frequently goes up to a B20 blend.
“The blending economics make B20 a smart choice for us,” Cassidy says. “And I’ve had drivers say it’s cleaned up their fuel systems, cleaned their fuel injectors, and they actually get better mileage with biodiesel blends versus a regular No. 2 ULSD because of the clean injectors.”
The Peru travel center and the wholesale business run out of the location use B11 throughout the winter, and on milder winter days will move up to B20. Cassidy says by using a good cold weather additive, they’ve had no issues in storage tanks, at dispensers or with customers.
No matter the weather, he advises other travel centers to do their homework on producers and to purchase quality fuel.
“REG produces a quality product, they stand behind it, and they have the supply to meet our demand,” Cassidy says.
Biodiesel has made Sapp Bros. more competitive both against other travel centers and as a fuel distributor.
“Because we took the step and handled biodiesel, it opened up a lot of doors for us as a wholesaler,” Cassidy says. “And at our travel centers, having a diverse lineup of fuels attracts a bigger customer base. Besides filling up with fuel, they’re inside your stores. They’re shopping, maybe getting something to eat. There are benefits to bringing in new faces.”
The Bottom Line
Sapp Bros. pays less for biodiesel. They can price biodiesel blends lower at the pump than ULSD, making them more competitive. Helps drive in-store sales.
Quick ROI on blending system. Easy to switch blend level.
Watch: Sapp Bros. Explains Biodiesel Benefits
Biodiesel has made Sapp Bros. more competitive in the crowded travel center market. See the results.
Sustainability Trend Driving Business to Carrier
Published on: Feb 10, 2019
Biodiesel helps G&D Integrated attract customers as more companies adopt environmental goals.
G&D Integrated has found that sustainability is not only about its own goals but also what it can do to meet its customers’ goals to be environmentally friendly.
“We’ve noticed that there are more and more customers asking us to participate in their sustainability efforts,” says Vince Buonassi, group manager of transportation programs at the for-hire carrier. “We’ve actually been awarded freight based on our biodiesel usage.”
Those customers are found worldwide and do business in heavy equipment manufacturing and parts fulfillment, agricultural machinery, automotive parts and components, food containers and food packaging.
Located in central Illinois, G&D Integrated’s services include transportation, warehousing, and distribution and logistics. On the transportation side, it offers point-to-point hauling, dedicated contract carriage, ocean container drayage and freight brokerage.
Its fleet of 430 vehicles travels up to 26 million miles annually. The diesel-powered units run year-round on a blend of 20 percent biodiesel and 80 percent petroleum diesel, which is known as B20.
Biodiesel has been key not only in the company’s sustainability efforts but also in growing its business. For instance, biodiesel usage is showing up in some RFPs and, Buonassi says, has been “directly related” to the company winning bids. It also has helped G&D Integrated strengthen its relationship with East Coast ports that want to reduce their carbon footprint.
“Many of our customers analyze their entire supply chain for environmental impact, and some have even gone as far as incorporating sustainability into their purchasing departments,” he says.
Significant carbon reduction.
The reduction in carbon dioxide emissions from G&D’s use of biodiesel is equal to nearly 230,000 fewer gallons of gasoline consumed each year. Particulate matter is reduced 2,854 pounds annually. The numbers come from the B20 Club, a program from the Illinois Soybean Association and the American Lung Association.
“We’re talking a material difference here,” Buonassi says.
G&D Integrated started using biodiesel several years ago after its fuel supplier, Ag-Land FS Inc., introduced the company to the fuel.
“They were claiming that this product would not only cost us less money but would not result in any efficiency losses,” Buonassi says.
He has found that to be true and says biodiesel has not caused G&D Integrated to increase its rates.
Fuel that performs.
G&D Integrated started with a B11 blend before quickly moving up to B20. Each time, it rigorously tested the fuel.
“What we observed was there was absolutely zero degradation in performance,” Buonassi says.
In fact, biodiesel added lubricity. It’s also performed well in cold weather.
Buonassi credits partnering with a quality vendor like Ag-Land FS to getting a good product. The fuel comes from REG.
“A company like REG has production facilities that make top-of-the-line, quality-controlled biodiesel,” he says. “And they’re sourcing different forms of feedstock that go through testing before being converted to the end product.” It’s an end product that Buonassi credits with helping G&D Integrated stay ahead of the curve.
“There’s really no sense in fighting the tide of sustainability,” he says. “A lot of other truck carriers will. At G&D, we feel it is our duty to be good environmental custodians, and it makes business sense for us.”
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