26 • OIL
&
ENERGY
Bioheat
THIS IS THE TIME OF YEAR WHEN BULK
plant operators assess their physical assets
for structural integrity, cleanliness and
appropriate utilization. If you are in the
fuel business, how many times a day do
you walk by a tank or a group of tanks and
think nothing about them? They sit quietly
awaiting re-supply at any given time.
We know from experience that poor
operations and maintenance procedures
for water monitoring and removal from
storage systems can lead to a number of
problems from degradation of fuel quality
and subsequent vehicle or home heating
system performance issues, to microbial
contamination and damage of the entire
storage system.
And finally, we understand how contango
and backwardation creates uncertainty in the
market, ultimately dictating when the tanks
will be filled or allowed to run lean.
WHAT FUEL TO STORE?
From the consumers’ standpoint, they
pay no attention to storage tanks, nor
should they. They drive federal and state
highways everyday seeing a tank or groups
of tanks from the corner of their eye but
simply don’t give them any thought. And
if they rely on home heating oil they likely
walk by their tank on a daily basis while in
the basement, more often wishing the tank
was gone because of the space it consumes.
A tank is simply a reminder that at some
point in time the liquid stored within it will
be what powers their cars, trucks, boats or
simply heats their homes. So every minute
of every day these indispensable vessels sit
doing what they were designed to do: store
fuel. But what fuel are they storing? Can the
tanks be repurposed to help the tank owner
increase his or her bottom line? What new
liquid products are available that might be a
better alternative for the long term?
The answer, at least at this time, is ASTM
D 6751 biodiesel. Certainly there are others
on the horizon, but nevertheless at this very
moment biodiesel is the one that terminal
operators are considering to extend fuel
reserves while potentially optimizing their
profits.
Much has been written about the
Renewable Fuel Standard and the associ-
ated RINs that come with buying, blending
and selling biodiesel and biodiesel blends.
Whereas the readers of this publication
represent a broad spectrum of the Oilheat
industry, it is challenging to point out the
specific benefits biodiesel offers every level
of the supply chain while staying within the
allotted space offered by the publisher.
AN ATTRACTIVE OPPORTUNITY
For the wholesalers, terminal owners and
registered fuel blenders of record, it’s clear,
biodiesel at times can be an attractive oppor-
tunity for blending to capture economic
market advantages. For the fuel distributor
it’s a 21st century liquid fuel option.
The focus of this article is not about
water monitoring and removal. It’s not
about battling microbial growth or which
premium fuel additive provides the most
protection to tanks, pipes and all related
fuel handling elements. However, all those
issues are certainly important and an effort
to protect your systems and customers from
the wrath of challenged fuel quality should
always be a priority.
This article is to raise awareness of the
fact that the tanks that sit in your tank
farm, regardless of their size, are quite
valuable. They’re valuable because they
enable you to take control of your current
If Tanks Could Talk
By Paul Nazzaro, Nazzaro Group, LLC, Representing the National Biodiesel Board
