Strategies to Maximize Profit When Volumes Drop

Biodiesel blenders can face challenging times when biodiesel volumes drop, whether due to regulation changes, market demand, or other factors. During such times, biodiesel blenders can take several steps to maximize profits and stay competitive.

Here are some strategies that biodiesel blenders can use to maximize profits during times of reduced volumes:

  1. Diversify your product portfolio

One way to increase revenue is to expand the range of products offered to customers. This could include offering other renewable fuels, such as renewable diesel or ethanol, or diversifying into other products. By offering a broader range of products, biodiesel blenders can maintain sales volumes even if biodiesel volumes drop.

  1. Increase efficiency

During times of lower volumes, looking for ways to increase efficiency and reduce costs is important. This could involve improving supply chain management, optimizing production processes, or investing in new technologies to reduce costs and increase efficiency.

  1. Focus on quality

Biodiesel blenders should always aim to produce high-quality biodiesel that meets the required specifications. By ensuring high-quality production, biodiesel blenders can differentiate themselves from competitors and command higher prices for their products.

  1. Build strong relationships with suppliers and customers

During times of reduced volumes, it is important to maintain strong relationships with both suppliers and customers. By building solid relationships, biodiesel blenders can negotiate better pricing and terms with suppliers while also ensuring a reliable customer base for their products.

  1. Consider strategic partnerships

Biodiesel blenders can consider strategic partnerships with other companies in the industry, such as feedstock suppliers or other biodiesel producers. By pooling resources and expertise, these partnerships can help biodiesel blenders to reduce costs, increase efficiency, and maintain profitability during times of reduced volumes.

Biodiesel blenders can take several steps to maximize profits during times of reduced volumes. By diversifying their product portfolio, increasing efficiency, focusing on quality, building strong relationships with suppliers and customers, and considering strategic partnerships, biodiesel blenders can maintain competitiveness and profitability even in challenging times.

2022 NATSO’s Alternative Fuels Council Renewable Fuels Workshop

On February 21, 2022, NATSO’s Alternative Fuels Council held a Renewable Fuels Workshop at the NATSO Connect conference held at Disney in Orlando. Filling the room to code capacity and having to turn some participants away from the workshop only supported the fact that many fuel retailers and fuel partners are very interested in blending renewable fuels and reaping any benefits available. While EV and other alternative fuel technologies are emerging – biodiesel, ethanol and renewable diesel have been and are being used right now to help lower GHG emissions. All-Line Equipment also presented on their Bio-Blender equipment and technology during the workshop. Please contact Ginger Laidlaw with the Alternative Fuels Council for any questions on the slides from the conference.

24-7 Travel Stores Rolls Out Biofuels, Moves Forward With EV Vision

In the years ahead, there will be many alternative fuel funding opportunities for fuel retailers to consider. These opportunities can help minimize the capital expenditures necessary to adapt to different fuel technologies that will be commercialized in the years ahead. Mark Augustine, president of 24-7 Travel Stores by Triplett Inc., embraces alternative fuels. 

The U.S. Department of Agriculture (USDA) announced recently that it plans to award approximately $22 million in competitive grants to expand the sale and use of renewable fuels, including biodiesel. Specifically, USDA said the Higher Blends Infrastructure Incentives (HBIIP) program aims to encourage a comprehensive approach to marketing higher blends by sharing the costs relating to upgrading fuel dispensers (gas and diesel pumps), related equipment, and other infrastructure required at a location to ensure the environmentally safe availability of ethanol blends containing greater than 10 percent of biodiesel blends greater than 5 percent… 
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On September 24, the Alternative Fuels Council in tandem with Eco Engineers offered an in-depth webinar on Renewable Diesel. The webinar covered all aspects of renewable diesel, from its production to its application at the dispenser. Click below to view the slide presentation used during this webinar: 


On Friday morning, the Alternative Fuels Council is offering an in-depth workshop on the Renewable Fuels Standard (RFS) and Renewable Identification Number (RIN) credits and the IRS Biodiesel Tax Credit. The workshop will be offered by renewable fuels experts Jeff Hove and Ginger Laidlaw of NATSO’s Alternative Fuels Council. The workshop will focus on blending and selling renewable fuels such as biodiesel and ethanol…  View Full Article 

NATSO ANALYSIS: Court Sides with Biofuels Interests in Case Examining RFS Small Refinery Exemptions

A federal appeals court ruling on Friday, January 24 handed a major victory to biofuels stakeholders, casting doubt on EPA’s legal justification for its recent increase of small refinery exemptions and adding a new wrinkle of uncertainty to an already-volatile Renewable Fuel Standard (RFS) program. 

The U.S. Court of Appeals for the 10th Circuit ruled that EPA has been granting “hardship” exemptions to a larger universe of refineries than Congress intended when it developed the RFS more than a decade ago. The exemptions have resulted in lower prices for the Renewable Identification Number (RIN) trading credits used to demonstrate compliance under the RFS and have diminished demand for renewable fuels in the United States… 
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State Incentives Matter – Jeff Hove

Renewable fuel has become an integral part of the fuel marketing industry and in order to remain ultra-competitive, fuel wholesalers and retailers must be knowledgeable regarding both federal and state regulations, incentives, supply options and infrastructure. There are several key issues facing those in the fuel industry. 

Current federal administration philosophies on deregulation have been taking their toll on the biofuels industry over the past two years. The U.S. Environmental Protection Agency’s Renewable Fuels Standard (RFS1- 2007, RFS2-2010-2022+) has effectively been the driving force behind the introduction of alternative fuels that can generate higher fuel margins. RFS corresponding renewable identification numbers still hold important value for blenders but other programs are beginning to overshadow the value of the renewable identification numbers (RINs). Blenders that recognize state incentives and growing interests in state low-carbon fuel standards (LCFS) will position themselves well for future fuel marketing models… 
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Bosselman Enterprises recognized for leadership in the ethanol industry

COUNCIL BLUFFS, Iowa — Grand Island’s Bosselman Enterprises was recognized Tuesday during President Trump’s visit to a Council Bluffs ethanol plant, where he announced the year-round sale of E15 fuel.

Trump made his announcement at the Southwest Iowa Renewable Energy ethanol plant, or SIRE, which produces about 110 million gallons of ethanol each year. 

As part of the president’s address, Randy Gard, Bosselman chief operating officer, addressed the audience to talk about the company’s more than three decades of leadership in the Nebraska ethanol industry. Gard is also a member of the Nebraska Ethanol Board. 
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EPA Issues Final Rule on RFS Reform

The Environmental Protection Agency (EPA) today issued a Final RIN Market Reform rule that authorizes the sale of E-15 year-round throughout the United States and enhances disclosure requirements under the Renewable Fuel Standard. 

The Final Rule appears to have adopted a number of suggestions made by NATSO in comments filed with the agency as part of the rulemaking process. NATSO filed its comments in conjunction with the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers (SIGMA). 

NATSO continues to analyze the Final Rule and will have a more detailed analysis in the coming days. The Final Rule appears to have refrained from adopting proposed regulatory changes that would have dissuaded and prevented fuel marketers from buying, selling, and blending renewable fuels under the RFS. 
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