Arkansas Energy Office, Clean Cities Partner to Promote Biodiesel Project

New blending and distribution capability

June 2007

Arkansas, long known as the Natural State, is getting greener, thanks to the Arkansas Energy Office and several Arkansas agencies involved with the state's transportation future.

Speaking at a recent news conference from the Arkansas Terminaling and Trading Inc. pipeline terminal in North Little Rock, Arkansas Department of Economic Development (ADED) Executive Director Larry Walther told the audience that Arkansas is now on a solid path to an alternative fuels future. He noted that the addition of the 20,000-gallon biodiesel storage unit, sequential ratio blending and metering equipment, and distribution infrastructure in place at the terminal and available to central Arkansas make the future bright. Walther "officially" pushed the "enter" button on the electronic key pad at the loading rack that then provided B20 biodiesel (20% biodiesel/petroleum diesel blend) to a Chief Seahawk 18-wheeler parked in the tanking bay.

The U.S. Department of Energy Clean Cities Special Projects grant established a storage tank and injection fueling system at a fuel terminal in North Little Rock. A conveniently located retail outlet provides biodiesel to public and private fleets through an automated card reading pump. The fuel blender allows fuel haulers to load and deliver American Standard Testing Materials (ASTM) grade biodiesel fuel throughout the region.

The biodiesel project was managed by Little Rock-based Metroplan, the transportation and long-range planning organization, through the Central Arkansas Clean Cities Coalition. Clean Cities promotes the use of alternative fuels in alternative fuel vehicles. Members include ADED, Arkansas Department of Environmental Quality, Arkansas Environmental Federation Inc., Arkansas Propane Gas Association Inc., Arkansas State Highway & Transportation Department, Arkansas Trucking Association Inc., Bryant School District, City of Benton, City of Bryant, City of Cabot, City of Jacksonville, City of Little Rock, City of Maumelle, City of Mayflower, City of North Little Rock, City of Sherwood, City of Ward, City of Wrightsville, Central Arkansas Transit Authority, Conway Corporation, Coulson Oil Company Inc., Entergy Arkansas Inc., Ferrell Gas Company Inc., The Foltz Company, LLC, Little Rock Chamber of Commerce, Metroplan, North Little Rock School District, Pulaski County, Reliant Energy-Arkla Inc., Saline County, U.S. Department of Energy, U.S. General Services Administration, and Whitey's Truck Center Inc.

The widespread use of biodiesel has been limited in Arkansas due to the absence of a blending and distribution system. The terminal is located near Interstate 40's Prothro Junction and Galloway exits, just off I-440 on Highway 70's Central Airport Road. The terminal's close proximity to Arkansas farmers means easy access to the fuel from nearby producers.

The tank was blending and pumping biodiesel fuel in July. From July through the first week of October, Arkansas Terminaling & Trading has sold 1,306,839 gallons of blended biodiesel fuels (B5, B10, and B20) and 113,703 gallons of B100.

"We believe that by putting the infrastructure in place, we can grow alternative fuels programs that will benefit Arkansans at many levels," Walther said. “In just one year, Arkansas has gone from a state with no means for producing and distributing biodiesel to a full-fledged market player. This site is for distribution and for blending. The blending capability will lead to biodiesel cost reductions that will make it a more viable alternative to standard petroleum blend fuels."

"It will positively impact many Arkansans from farmers growing the crops, to biodiesel production facility workers, to fueling site employees, to truck, bus, and service fleet owners and operators and those using farm-related equipment. In short, it touches the commercial, institutional, agricultural and retail level users as well as all of the people who are connected to those users," said Walther.

"There is no doubt that this project will positively impact Central Arkansas' transportation systems," said Metroplan Executive Director Jim McKenzie. "We are sure that in the future Arkansas will have fewer harmful exhaust emissions — thus reducing greenhouse gases that contribute to global warming and alter the ozone levels in our region."

Mike Coulson, president of Coulson Oil Company, is confident the product availability will facilitate distribution of biodiesel in a positive way.

"We know there is a demand for biodiesel and we are now capable of supplying that demand," Coulson said. "That is great progress."

This article was reprinted with permission from the Fall 2006 edition of the Arkansas Energy Connection.