Sprague, Sunoco add biodiesel blending to Newark terminal

By Erin Voegele | June 21, 2011

New Jersey is home to a new biodiesel terminal location. Sprague Energy and Sunoco Logistics held a grand opening ceremony for the terminal, located at Sunoco Logistics Newark Terminal, on June 20. The multi-product fuel terminal will provided biodiesel-blended transportation fuel and heating oil.

Sprague will have the ability to provide multiple biodiesel and Bioheat blends at the terminal for ultra low sulfur #2 diesel fuel, heating oil, and in the future, ultra low sulfur kerosene #1 diesel fuel. Blends available are B2, B5, B10 and B20.

Steven Levy, Sprague Energy’s managing director, said the location features a 132,000 gallons of bulk storage and utilizes state-of-the-art rack injection. According to information released by the company, the rack loading equipment is essential to overcoming the issues associated with splash blending. “Injecting biodiesel with the automated rack blending system saves time and money while ensuring a homogeneous blend,” Levy said.

While many areas of the Northeast, such as Pennsylvania and New York, have been actively working to establish biodiesel terminal infrastructure, Levy noted that New Jersey had been lagging behind. That’s no longer the case. “What the opening of this blending facility does is secure distribution for northern and central New Jersey,” he said. “[The location] provides a geographically desirable terminal where you can automatically blend B2, B5, B10, and B20 for heating fuel as well as diesel fuel.”

According to Levy, biodiesel blended at the location will be sourced from a variety of producers. In addition, the location will be capable of providing biodiesel sourced from whatever feedstock customers require, from virgin vegetable oils to recycled cooking oil or animal fats. Levy also noted that Sprague expects government and private fleets to initially make up a significant portion of the demand for biodiesel blended fuels sourced from terminal. “We also feel the supply location will be a big player in the residential heating oil market, and also open the opportunity for power generation facilities as well as the marine industry,” Levy continued.

“Our goal is to provide the terminal and pipeline infrastructure our customers demand,” said Michael Hennigan, president and CEO of Sunoco Logistics Partners L.P. “By adding biodiesel and Bioheat blending capability at the Newark terminal, Sunoco Logistics continues to meet our customers’ needs for biofuels distribution.”

Those on hand for the grand opening ceremony included Levy; Wayne Staub, director of economic growth and sustainability with the New Jersey Department of Environmental Protection; National Biodiesel Board CEO Joe Jobe; David Chalson, general management product movements for Sunoco Logistics Partners L, David Glendon, President and CEO of Sprague Energy; and Chuck Feinberg, executive director of New Jersey Clean Cities Coalition.

“From coast to coast we are seeing a resurgence of biodiesel use and infrastructure development as our industry gears up for what is expected to be a record-breaking production year,” Jobe said. “The National Biodiesel Board applauds Sprague’s and Sunoco’s investment in biodiesel, America’s advanced biofuel.”


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