US commodity transportation company Tidewater will soon be able to blend over 2mn USG of biodiesel per month at one of its terminals in Washington state, enabling broader use of renewable fuels in the region.
The company said the new biofuel facility at its Snake River Terminal in Pasco, Washington, will be operational "by the end of this week." The addition to the terminal will also allow for loading neat biodiesel for distribution to other blending sites in eastern Washington and in nearby Oregon.
The terminal can store 9mn USG of petroleum and renewable diesel that can now be blended with up to 20pc biodiesel depending on customer requests, Tidewater said.
The US Department of Agriculture helped fund the project through a $3.1mn grant last year as part of the agency's Higher Blends Infrastructure Incentive Program. The office of senator Maria Cantwell (D-Washington), which supported the funding request, said at the time that the plan was to make more renewable fuels available to farmers, local gas stations, and potentially to BNSF Railway.
Crucially, Washington is one of just three states in the US with a low-carbon fuel standard program, which requires yearly reductions in transportation fuel carbon intensity and helps subsidize biofuel production. Higher-carbon fuels exceeding the annual limit incur deficits that suppliers must offset with credits generated from the distribution of approved lower-carbon alternatives, including fuels like biodiesel and renewable diesel. Oregon has a similar program.
