The renewable fuels standard, which mandates the use of 500 million gallons of biodiesel in 2009, should also help drive demand for Bioheat. “If the price doesn’t improve with respect to biodiesel, it’s going to be difficult to get too far above 500 million gallons,” Milne says. “It is going to be about price.”

Wholesale and retail interest seems to be growing. “I know of approximately 180 companies that have registered to utilize the Bioheat trademark, which the NBB owns,” Nazzaro says. Nelson Driver, owner of Driver Heating Oil Inc. in Waynesboro, Va., says his company sold a B5 bioheat blend in the past, but currently lacks a biodiesel supplier. “I certainly hope to get back into it sometime this season,” he says.

Cox says his goal is to have all the fuel his company supplies be at least a B2 Bioheat blend. “[Customers] won’t have an option,” he says. “We, as a company, will only sell Bioheat.” Before that can happen, the company needs to solve its problems with storage and to secure a reliable supply of biodiesel.

Acme Fuel Co. in Olympia, Wash., was selling a B20 Bioheat blend but will likely switch to a B5 blend, says Thomas Allen, the company’s president. “Right now B20 is 50 cents more per gallon than regular heating fuel,” he says, which is more than most customers are willing to spend.

Hart Petroleum supplied a B20 Bioheat blend last year. “We had absolutely no problems, it was very successful,” Hart says. However, “to keep costs in line because of constant changes in the market, we decided this year to reduce it to a B5.” He estimates B5 Bioheat will cost between 2 and 5 cents more per gallon than straight petroleum-based home heating oil.

Many wholesalers and retailers who are adding Bioheat to their product offerings seem to be doing it quietly. In fact, many customers may not even realize they are using a B5 Bioheat product to heat their homes. In addition, many retailers are looking at Bioheat as a way to help undo some of the damage that has been done to the industry as customers have have switched to natural gas. “What Bioheat brings to the table is it’s a new fuel—it’s a green fuel,” Milne says. “It brings certain associations to consumers, and that’s a good thing.”

Erin Voegele is a Biodiesel Magazine staff writer. Reach her at evoegele@bbiinternational.com or (701) 373-8040.

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