December 1, 2011 [OPIS] - Blue Sun Biodiesel will sell its biodiesel at the Cummins Terminal in Knoxville, Tenn., beginning in January, the Colorado biodiesel producer said.
Blue Sun is to deliver mechanically blended biodiesel from a heated 546,000-gal tank through three of the six lanes at the terminal’s truck-loading rack. The rack has helped Cummins become the fastest-loading, highest-volume diesel terminal in the region, the company said, and customers can blend at the rack to any biodiesel blend they prefer, from B1 to B100.
“The biodiesel will be SME or CME,” Steve Bond, Blue Sun’s business manager, said in an interview. “We are going to start with soy biodiesel there for our major users in the area. That is what they are going to want for certain in December and January, historically. Delivery to Knoxville is via truck or rail, with the ‘last mile’ being trucked to the terminal.”
He added that the “transload site is TBD, but the area is typically on Norfolk Southern.” Current economics allow biodiesel to be sold at prices below conventional diesel fuel, according to Blue Sun.
“Over the past year, we’ve seen prices for B2 and B5 blends below diesel,” said Randy Rutherford, business development manager for Blue Sun. With higher level blends such as B10 or B20, the discount to diesel can be even greater, the company said. Bond said he didn’t have specific pricing information since the opening is still a month away.
