Pact with Ames is Producer’s First with a Municipality
The Ames, Iowa-based Renewable Energy Group, a major producer of biodiesel fuel, say it’s notched its first deal with a municipality, agreeing to provide fuel for 78 CyRide buses operated by its home city of Ames and Iowa State University. updated January 9
“As REG Energy Services expands, we look forward to the opportunity to work with municipalities to provide a high-quality product that provides for energy and food security, job creation and environmental stewardship,” REG regional sales director Don Nelson said in a release.
“We want to thank CyRide for choosing REG Energy Services as its 2015 fuel partner,” he said.
More Biodiesel in the Summer
REG says that its Energy Services unit began providing 350,000 gallons of fuel with biodiesel blends of up to 20% to CyRide on January 1. That’s enough for a year, says Rich Leners, CyRide assistant director for fleet and facilities.
Under the agreement, Ames will increase its use of biodiesel from previous years, using higher blends of the advanced biofuel during the summer months.
“We typically run a 5% blend during the winter months and may drop as low as 2% if we are facing a prolonged sub-zero cold snap,” Leners told F&F. In the summer, he says, he expects to run B20.
The CyRide fleet serves an average of 40,000 riders daily and operates approximately 1.2 million miles a year, REG says, noting that “the city will see carbon dioxide emission reductions of as much as 658 metric tons in 2015 with the increased biodiesel blends.”
“Everyone benefits from this partnership,” Ames transit director Sheri Kyras says in the REG announcement.
REG has ten active biorefineries in the U.S., supplying its REG-9000 biomass-based diesel to distributors “so consumers can have cleaner burning fuels that help diversify the energy complex and increase energy security.”
Fuel for CyRide will come from the division’s Magellan terminal in Des Moines.
Separately, the Iowa Renewable Fuels Association said today that state biodiesel production was 227 million gallons in 2014, down slightly from the 2013 record of 230 million gallons. The group will hold its ninth annual summit on January 27 at the Meadows Conference Center in Altoona, Iowa.
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Source: REG, Inc. with Fleets & Fuels follow-up