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Oklahoma Included in $26 Million Biofuel Infrastructure Investment

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Oklahoma Included in $26 Million Biofuel Infrastructure Investment

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Deputy Under Secretary for Rural Development Justin Maxson last week announced that the U.S. Department of Agriculture (USDA) is investing $26 million to build infrastructure to expand the availability of higher-blend renewable biofuels by 822 million gallons annually in 23 states, including Oklahoma.

USDA is making the awards under the Higher Blends Infrastructure Incentive Program. The funding will help significantly increase the use of biofuels derived from U.S. agricultural products and prioritize climate-smart solutions that will help rural America build back better.

“Investments like these increase opportunities for American consumers to make climate-smart decisions and move the country closer to President Biden’s goal of net-zero carbon emissions by 2050,” Maxson said. “By expanding the availability of higher-blend biofuels, we’re giving consumers more environmentally-friendly fuel choices when they fill up at the pump and stimulating an important market for U.S. farmers and ranchers.”

The announcement includes investments in California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Texas and Wisconsin.

In Oklahoma projects include:

• Magellan Pipeline Company L.P. will use a $4,884,077 grant to install storage tanks with piping, pumps, gauging, manways, tank insertion heaters and insulation, and small biodiesel mechanical buildings. This project is expected to increase the amount of biodiesel sold by 223,661,458 gallons per year.

• Fuel Marketing Corporation will use a $87,614 grant to install automation software at distribution facilities in Missouri and Oklahoma. It also will install management software at a facility in Missouri. This project is expected to increase the amount of biodiesel sold by 1,212,376 gallons per year.

Background: Last week’s announcement marks the one-year anniversary of the Higher Blends Infrastructure Incentive Program. To date, USDA has invested $66.4 million for projects that are expected to increase biofuels sales by 1.2 billion gallons annually.

Through this program, USDA helps transportation fueling and biodiesel distribution facilities offer higher ethanol and biodiesel blends to customers by sharing the costs to install fuel pumps, equipment and infrastructure. For more information on the program, visit www.rd.usda.gov/hbiip.