Over 30 years ago, in a stunning display of industrial leadership, Missouri soybean farmers, through their checkoff, invested in the research and viability of a cleaner burning fuel. Their investment transformed the soybean market and created a powerful asset: biodiesel.
Now, the journey toward a greener, more sustainable future is earmarked by extraordinary partnerships between public and private industry such as those with Missouri Soybeans, MFA Oil and Magellan Midstream Partners LP. These pioneers are working to propel the industry into a future where biodiesel is the preferred premium fuel and is readily available at every pump.
BLENDING SUSTAINABILITY INTO INFRASTRUCTURE
Infrastructure continues to be a costly challenge facing the implementation of biodiesel at every level. Luckily, the Higher Blends Infrastructure Incentive Program (HBIIP) is a federal grant that funds the improvement and purchase of capital to ensure the environmentally safe availability of fuel. Terminals and retailers in Missouri may also apply for a similar state-level grant, funded by the Missouri Agricultural and Small Business Development Authority (MASBDA) and the Missouri Soybean Merchandising Council (MSMC).
“The investment of Missouri soybean farmers in the Biofuel Infrastructure Incentive Program reflects their commitment to expanding the distribution and use of biofuels,” said Matt Amick, director of market development for MSMC. “These funds paved the path for innovation and promote energy independence. Soybean oil is a vital feedstock for biodiesel production, making soybean farmers key stakeholders in the renewable energy transition.”
In 2020, Magellan was awarded both grants to add biodiesel blending capabilities in some of their facilities. The company currently offers biodiesel blends at its Kansas City and Springfield terminals.
“Updating existing systems to allow for biofuels is an incredibly large, complex and expensive project to take on,” said Garrison Haning, Magellan’s director of government and media affairs. “There are many elements that need to be accounted for including heat tracing your lines, heating your tanks and upgrading all of your loading systems across the rack.
“The grant program is a testament to government proactively offering those funds and private industry stepping in to make the product commercially available across the Midwest,” Haning said.
Magellan is proud to have been awarded the grants and to increase product availability. These improvements are part of the company’s commitment to working toward a greener future. By offering ethanol and biodiesel blending capabilities at its terminals, Magellan ensures a seamless distribution network for these renewable fuels.
SELLING THE SOLUTION
As the infrastructure continues to be built out, companies must now split their attention between logistics and advocacy. As part of his role, Haning actively participates in conversations to share insights into the company’s renewable energy initiatives. Additionally, Magellan publishes an annual Environmental, Social and Governance (ESG) report, highlighting its sustainability progress.
“This report serves as a valuable resource for investors, customers and the public to gain a deeper understanding of Magellan’s commitment to environmental responsibility,” said Haning. “As we look to the future and begin to discuss carbon intensity scores, the key is making sure that everything that we consider is commercially viable.”
MFA Oil shares that same commitment.
Founded in 1929, the cooperative has always seamlessly blended its love for agriculture with its expertise in energy, serving as a vital link between Missouri’s farmers and the fuels that power their world.
“Promoting renewable fuels like biodiesel is not just a choice,” said James Greer, senior vice president of supply. “It’s part of our DNA.”
The cooperative has been championing biodiesel since the early days. Back in 1993, they claimed to be the first retailer selling biodiesel in the region. Despite challenges and misconceptions facing the renewable fuel, MFA Oil’s commitment remains unwavering.
In the early 2000s, the production of a sub-standard product left a black eye on the reputation of the biodiesel industry. However, the producers responsible for that subpar biodiesel are no longer in existence. Today, biodiesel is a premium and dependable fuel option, often outperforming petroleum-based diesel.
James works to highlight the importance of having one-on-one or community conversations to address any concerns and educate farmers about the reliability of the Missouri-made fuel.
“The need for further education about biodiesel remains a priority,” emphasized Greer. “Many consumers are unaware that low level biodiesel blends, like B5, is a year- round policy throughout the Midwest. Policies like this dispel the misconception that biodiesel poses winter operability challenges.”
MFA Oil also consistently partners with Missouri Soybeans to highlight the product in a more visible way. One of their notable initiatives was wrapping vehicles with bio- diesel messaging and becoming one of the founding members of the Biodiesel Coalition of Missouri (BCM) to further boost the industry.
When asked why MFA Oil prioritizes leadership in the space, James replied, “We are an organization owned by farmers, and farmers should support their product. So that’s why we do it.”
FACING CHALLENGES AND EMBRACING OPPORTUNITIES
Despite their dedication to advancing biodiesel, both MFA Oil and Magellan acknowledge challenges in the renewable energy landscape. These challenges often stem from the intersection of politics and science. This is where Missouri Soybeans may step in.
“In addition to the initial research, MSMC continues to fund investments into the education about biodiesel,” said Amick. “We work with technical schools across the state to ensure that current and future diesel mechanics understand the reliability of biodiesel.”
The Missouri Soybean Association (MSA) diligently advocates on behalf of the industry as well. During the past year, MSA successfully lobbied for tax credits for biodiesel producers and retailers, helping to make the product even more commercially viable at the pump.
“Looking ahead, the future of the biodiesel industry appears promising,” said Amick. “The American and global energy landscapes are embracing a diverse mix of energy sources, with renewable fuels at the forefront. By collaborating with key partners like MFA Oil and Magellan and advocating for sustainable practices, soybean farmers are driving the industry toward a lower carbon future.”
