Biodiesel Pays Off for Company's Travel Center and Wholesale Businesses
Sapp Bros., Inc. sees economic advantage in offering biodiesel at its travel centers and as a wholesaler.
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 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.
“Chevron Renewable Energy Group 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.”
Sapp Bros., Inc.
- Headquartered in Omaha, Nebraska
- Operates 17 travel centers
- Also runs a fuel wholesale business
- Has sold biodiesel at its travel centers since 2005
- Offers up to a B20 blend
LIKE WHAT YOU READ?
Chevron Renewable Energy Group delivers insightful content like this to your inbox in our e-newsletters. Sign up today.