Tom Torre (pictured) is Chief Operating Officer at Metro Fuel Oil. (Photo by Brad Linder)
For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:
Transcript
For years, environmental activists have been demonstrating that you don’t need gasoline to fuel a
car. Some people have been retrofitting cars with diesel engines that can be powered by
restaurant grease. But with the price of oil soaring in recent years bio-diesel’s been getting more
popular. Brad Linder reports that it’s moving from a fuel for hobbyists to an energy alternative
that’s even getting the attention of oil companies:
From a distance, Metro Fuel Oil in Brooklyn, New York looks like an over-sized gas station. And
in a way, that’s what it is. Truckers pull up to a series of pumps, grab a hose and load their tanks
with oil. It’ll be distributed to heating oil and diesel customers throughout the area.
Tom Torre is Metro’s chief operating officer. He says starting next year, some of those trucks
will be topping off with a blend of oil and vegetable-based bio-diesel:
“Kind of like if you’ve ever seen a Sunoco gas station where they had the different octanes you
can buy, same thing with the bio. It’d be B5, B10, B20, B15s, whatever they might utilize.”
In other words, you can get a blend… For example, B20 is 80% diesel and 20% bio-diesel.
For more than six decades, Metro has provided oil to residential and commercial customers. A
few years ago, Metro began importing processed bio-diesel from nearby states to fuel its own
fleet of 40 trucks.
But next year, the oil company plans start taking in raw vegetable oil and processing it on-site.
Metro’s planned 110 million gallon bio-diesel processing facility will be one of the largest in the
country.
Torre says Metro doesn’t expect to get out of the oil business anytime soon. But the company
does see a future for domestically-produced fuels like corn-based ethanol and vegetable-based
bio-diesel:
“And it’s good for the economy as well. I mean, you know, the numbers are astounding as to
how much we spend a day, billions of dollars a day, that are being spent on foreign imported oils that are going back to the Arabs where… and
nothing against the Arabs, don’t get me wrong, but it’s money flowing out of the United States.”
When the processing plant opens, Metro will be able convert large quantities of soybean, palm,
and rapeseed oil into fuel. With a few modifications, the facility could also process restaurant
grease:
“I’ve been here, with the company, for 25, 26 years. Most exciting thing that’s happened in at
least the last 20, 25 years. We’re looking to push this thing going forward. And with our
association as well, the New York Oil Heat Association, to say, listen guys. We’d better start
thinking about this. We’d better be forward thinkers. Otherwise we’re going to be left behind.”
But as more and more facilities like Metro’s pop up around the country, what happens to the
nation’s food supply? Bill Holmberg heads the biomass division of the American Council on
Renewable Energy. As the demand for vegetable-based fuels rises, he says so could the price of
foods based on corn and soybeans.
“I think there will be an increase in price in those. But I think they’re beginning to level off now,
I think people are beginning to realize that you can find other resources to make those diesel- type
fuels.”
Holmberg says if you make bio-diesel out of soybean oil, there’ll be less soybeans available for
food processing. But that’s not the case if you use restaurant grease. And researchers are looking
at ways to cultivate algae as a fast-growing source of vegetable oil for bio-diesel.
If the economic impact of bio-diesel remains unclear, Holmberg says there’s no question it’s
more environmentally friendly than petroleum. Bio-diesel emits far less carbon monoxide, sulfur,
and particulate matter than petroleum-based diesel.
The U.S. bio-diesel industry is still young. Last year, it processed less than 300 million gallons
of fuel, which is just a drop in the 40 billion gallon transportation diesel market. Holmberg says
even large facilities like Metro’s aren’t going to change that overnight:
“We, in the world of bio-fuels, ethanol, and bio-diesel and other forms of bio-fuels, will be
making a major contribution if we just do not increase the amount of fuels used in the
transportation sector, which we’re doing now. If we can just keep that number steady for a few
more years, we’re providing a real service to the United States.”
Holmberg hopes that ten years from now, facilities will be in place to actually reduce the amount
of petroleum used. He says that could be from a combination of ethanol, bio-diesel, gas electric
hybrid vehicles, and other technologies that are just in their infancy.
Metro’s Tom Torre doesn’t think the oil industry is going away anytime soon. But he says the
company’s willing to invest 15 million dollars in its new processing plant to help the
environment and to get in on a growing industry.
It doesn’t hurt that Metro can sell bio-diesel for almost the same price as oil. The federal
government provides a tax incentive for bio-diesel producers like Metro, and the state of New
York offers a tax credit to residents who purchase bio-diesel. Currently, that means it’s cheaper
to heat your house with a bio-diesel blend than with 100% petroleum-based heating oil.
Without those incentives, Torre says Metro would still be opening a processing facility — just a
much smaller one:
“It would definitely not have been a 110 million gallon plant. You know, we could have started it
off with 5 million gallons, let’s say, and just utilize it for people that really wanted to be green.
But when we took a hard look at it and saw that it could be competitive, especially last year as
the price of petroleum just soared, is when we really started to say you know what? Instead of
doing the 5 million, let’s just go right to the 110 million.”
Metro’s new bio-diesel processing plant – one of the biggest in the country – is scheduled to open
next fall.
For the Environment Report, I’m Brad Linder.