“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.
Navigating the Trucking Industry Landscape With Biodiesel
Published on: Feb 26, 2019
As sustainability grows in importance, Ruan finds that biodiesel helps reduce emissions and protect the bottom line.
Ruan Transportation Management Systems has never stopped innovating, which is fitting for one of America’s most storied trucking companies.
John Ruan started the company in Des Moines, Iowa, in 1932 with one truck. Today, it is an asset-based 3PL with a diverse offering of services, over 300 locations nationwide and a fleet that travels 350 million miles a year.
As the company continues to evolve, Ruan recognizes the importance of environmental sustainability to the trucking industry's future.
“Ruan wants to help reduce emissions,” says Steve Larsen, the company’s Director of Procurement and Fuel. “We are also very customer-focused, and a lot of our customers have sustainability goals, and we want to support them by being a cleaner supplier.”
To that end, Ruan started running its fleet on biodiesel blends in large volumes in 2016. It has found biodiesel to be a drop-in solution that can help the environment and fleet performance while also being a lower-cost option compared with petroleum diesel and other alternative fuels. "With biodiesel, you can start being cleaner and saving money right away without having to do any equipment or infrastructure changes," Larsen says.
Ruan’s use of cleaner fuels also makes a strong impression on customers and prospective customers that are increasingly asking about sustainability initiatives, including in RFPs. So, too, does its ability to offer specifics with the reports Renewable Energy Group (REG) provides that show how much Ruan has reduced greenhouse gas emissions by using REG fuel.
“As of fall 2018, Ruan has reduced greenhouse gas emissions by over 2,100 metric tons since starting to do business with REG,” Larsen says. “It’s a real advantage to have that kind of information calculated for us and available to share with our customers.”
Larsen says REG also stands out for product quality, reliability and competitive pricing. Ruan buys fuel that has already been blended, rather than doing the blending itself.
A mainstream fuel
Ruan’s history with biodiesel may only be a few years old, but Larsen says the benefits are obvious — and thinks that goes for the entire trucking industry.
“At this point, I’m going to be more surprised if I hear somebody is running vehicles that don’t have biodiesel, especially Class 8 trucks,” Larsen says. “For Ruan, it simply comes down to emissions reductions, strong performance and cost savings.”
Headquartered in Des Moines, Iowa
Operates in 48 states
Has approximately 4,000 tractors and 9,500 trailers