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SOUTH PARIS - A new facility that stores and blends biofuels in South Portland is a big step for customers who want to use alternate energy fuels - and for the businesses that supply them. "We've seen quite a demand for alternate diesel fuels from big trucking companies," said Ken Cannell, transportation manager for C.N. Brown. "The problem has been one of not enough supply." That should change with new facilities built by Sprague Energy. Cannell and Ford Reiche, president of Safe Handling Inc. in Auburn, were among the invited guests Tuesday to unveil the new facility, which stores and blends biofuels with conventional petroleum products. "We needed a big backer, someone willing to spend the time and money to handle this and make it viable," said Cannell of Sprague's investment. He said his company has meetings already slated with several large trucking companies interested in converting to biodiesel fuel now that they can be assured of quality and supply. "They've been asking about it for six months to a year now," Cannell said. Oakhurst Dairy, one of C.N. Brown's commercial customers, has already converted its fleet. Sprague's new facility at its South Portland terminal represents the first venture into the biofuel market by a major wholesaler. Some smaller energy companies have offered biofuel to power vehicles or to heat buildings, but no one so far has done it on the scale of Sprague, said Erika Morgan of Maine Energy Investment Corp., a nonprofit advocacy group that promotes biofuel use. "This is great. It allows a lot of heating oil suppliers to get biofuel," she said. The new facility stores 42,000 gallons of pure biofuel (referred to as neat or B100) that is delivered via Safe Handling from its rail facility on Rodman Road in Auburn to the South Portland terminal. The B100, a derivative of soy bean oil, arrives from producers in the Midwest. The B100 is pumped through special heated pipes into storage tanks for blending with conventional petroleum to use as diesel fuel or heating oil. Andy Lynch, spokesman for Sprague, said the energy company sees a promising future for biofuels, which motivated the investment. "We see the growth potential with biofuels, even though it's a small portion of our business now," he said. The 42,000 gallons of B100 storage compares with 46 million gallons of traditional petroleum fuels at South Portland. "But we've sold over 2 million gallons so far in our network since March." He said other states, such as New York, have already embraced biofuels in a big way. Sprague upgraded two facilities there to accommodate the increased demand. Lynch said he's beginning to see similar interest in Maine, and thinks tax incentives help. Truckers who use biodiesel fuel already get an almost 8-cent-a-gallon tax break. Cannell said the break levels the playing field between conventional and bio fuels, making the costs nearly the same. Morgan said biofuel for homes is also often on parity with conventional heating oil (a comparison of fuel prices is available at www.mainenergyinfo.com). The upside for residential and commercial customers is using cleaner fuels that produce fewer emissions and cause less pollution. "People realize it's better for the environment and try to make a difference," Cannell said. They also take some comfort from reducing reliance on foreign oil, Lynch said. "B100 is literally grown, produced, shipped, sold and used domestically," he said. "We're very proud of that."
Sprague Energy is the nation's first fuel oil terminal operator to earn BQ-9000 Certified Marketer status which ensures the highest quality standards for storage, sampling, testing, blending, shipping, distribution and fuel management. The South Portland facility has a tank that will hold up to 40,000 gallons of 100% Biofuel (B100), in addition to existing facilities holding over 60 million gallons of traditional petroleum based fuels.
Sprague Energy supplies 100% of Giroux Oil's Biofuel.
Maine Audubon in Falmouth, Maine awarded their oil contract for the 2006/2007 heating season to Giroux Oil. This is the second year that they will be using B20 blend Biofuel.
Who says nothing exciting ever happens in 04103???
The Ashley family of Deering Center received Portland's first delivery of premium Biofuel from Giroux Oil. The Ashleys and Steve Giroux all agree that Biofuel is a smart alternative to traditional heating oil. Biofuel is made from a blend of 5% soybean oil and 95% #2 heating oil. Studies show it is better for the environment and since it is produced domestically, it creates jobs for Americans. Biofuel is currently available from Giroux Oil on Warren Avenue.
Governor John Baldacci and Dale McCormick, Director of MaineHousing paid a visit to Giroux Oil last month to personally deliver the first heating assistance payment of the 2006-07 heating season. "We expect home heating costs will be more expensive this year than last, presenting a challenge to many Mainers," said Governor Baldacci. Presenting the LIHEAP check to Steve Giroux, the Governor thanked Steve and his family for their commitment to serving LIHEAP recipients.
This year, the LIHEAP program will help an estimated 50,000 Maine households with an estimated $30 million in heating assistance payments. The Governor also spoke about the new Home Energy Loan Program (HELP) that provides low interest loans to Mainers who want to make home improvements that will enhance the energy efficiency of their home.
"LIHEAP offers important relief for many of our customers," commented Steve Giroux. "Some of our long term customers are now on fixed incomes and rely solely on Social Security. We know how worrisome it is for them as winter approaches."
Recognizing the need in the Portland area, Dale McCormick stated "MaineHousing is doing everything it can to ensure that LIHEAP customers in the Deering and Riverton sections of Portland, as well as the other 50,000 households in Maine that receive LIHEAP, remain safe and warm this winter in the face of rising heating costs. Programs such as Keep ME Warm and Weatherization are making homes of LIHEAP customers more energy efficient so they need less fuel to keep warm."
Acceptance to LIHEAP or other programs is based on household income. Once a family qualifies for the LIHEAP program, funds are sent directly to the oil dealer who delivers their oil. This year, the state intends to process 90% of the LIHEAP applications before the end of December.
Steve Giroux wants to spread the word about this great program because he thinks LIHEAP could benefit more of his customers. If you would like additional information about LIHEAP, call Giroux Oil at 797-7111. To apply for LIHEAP or HELP, please call PROP Fuel Assistance at 842-2988.
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