Written on: July 8, 2025 by Paul J. Nazzaro
This moment demands communication and unity across the value chain. From fuel dealers and wholesale distributors to terminals, associations and producers, it’s time to work together to expand the availability of domestic biodiesel—an essential ingredient for the continued growth of Bioheat® fuel. The intention of this message is to encourage greater communication with trusted supply partners and to strengthen those relationships by expanding the conversation upstream. We need to collectively signal to domestic biodiesel producers that our region is organized, ready and eager to collaborate on mutually beneficial, ratable supply agreements.
At the center of today’s market transition is the shift from the longstanding Blender’s Tax Credit to the Clean Fuel Production Credit (CFPC), effective January 2025. Unlike the previous incentive, which rewarded blending behavior, the CFPC prioritizes lifecycle carbon intensity—redirecting producer focus toward clean, traceable, high-integrity fuel pathways. Meanwhile, delays and uncertainty around Renewable Volume Obligations (RVOs) have added to the complexity, putting some producers in wait-and-see mode.
However, in every market disruption, there’s opportunity. For biodiesel producers, the West Coast has long been the primary destination, thanks to lucrative Low Carbon Fuel Standards (LCFS). Now, with demand surging across heating oil, marine, rail, fleet transportation and aviation, producers are exploring these evolving markets—ones that offer infrastructure, seasonal consistency and trusted partners.
An Opportunity is At Hand
This is where our opportunity presents itself. The heating oil sector is uniquely positioned to be the next and best dependable partner. We have the infrastructure: storage tanks, delivery trucks, terminals and blending systems. We have loyal customers, many of whom are increasingly attuned to environmental concerns. We also have a proven low-carbon solution—Bioheat® fuel—that can be scaled quickly if we align supply.
Alignment, however, starts with commitment and persistent action.
A lingering myth in our sector is that biodiesel is hard to source. Let me assure you, supply exists—and what’s needed is confidence and commitment from the market that we’re serious about becoming long-term buyers. That confidence starts with clear communication—fuel dealers working hand-in-hand with their wholesale partners to engage upstream with biodiesel producers and confirm interest, readiness and demand levels.
This means strengthening our communications and existing relationships with the entire value chain, using those relationships to expand our reach, together.
Wholesale partners know and have existing relationships with biodiesel producers. They manage rail access, storage capacity and blending logistics. Dealers know their customers. They understand usage patterns and seasonal requirements. Our success lies in connecting these two pieces—east and west, demand and supply—through coordinated, transparent conversations.
How Do We Start?
Begin by evaluating your current biodiesel usage. Whether you’re blending at B5, B10, B20 or B50, quantify your seasonal needs. Ask yourself: If you were to distribute B20 across your customer base, how many gallons would that require from November through March? Use that data to initiate the conversation—with your supply partner first, then together with potential biodiesel producers.
Ask:
1. Are your suppliers already storing biodiesel?
2. Can they blend electronically to meet your specs?
3. If not, what would it take to make that possible?
These aren’t demands—they’re dialogues. They open the door to ratable, forecastable supply planning.
From there, broaden your reach. Coordinate with other dealers in your region to amplify the message to domestic producers. Focus on those with reputations for quality and a willingness to ship to the East Coast. Biodiesel producers are actively looking for partners who are prepared, transparent and committed to year-round relationships. They need more than one-off spot orders—they need ratable demand signals that help them plan rail deliveries, scale inventory and build long-term shipping strategies.
Associations—both State and National—can be instrumental in this process. They can aggregate dealer demand across regions, advocate for favorable rail rates and serve as brokers of communication between producers and East Coast terminals. By sharing regional forecasts, they can negotiate volume commitments that make logistical and financial sense for everyone in the chain.
This is not a huge undertaking. It’s a strategic pathway that requires planning now—not in October when supply chains are already obligated. Biodiesel producers need time to make production and delivery decisions. Terminals need time to allocate space. Distributors need time to coordinate blending operations. Together, we can make it work—but it starts by getting on the same page.
The broader policy environment is also leaning in our favor. The Clean Fuel Production Credit is incentivizing cleaner, more efficient biodiesel production. Federal programs such as the U.S. Dept. of Energy’s (DOE) Decarbonizing Off-Road, Rail, Marine & Aviation (DORMA) initiative are allocating resources toward the very sectors that share our feedstocks. Meanwhile, the European Union’s maritime carbon reporting requirements are driving up global demand for clean fuels like biodiesel, adding competitive pressure.
Sustainable Aviation Fuel (SAF) may become a massive new draw on biodiesel feedstocks. If we delay signaling our demand, we risk being outbid or overlooked. We cannot expect to rely on leftovers from other markets. The heating sector must stake its claim as a preferred destination for high-quality biodiesel.
We have the infrastructure. We have the customers. Now, we have the policy tailwinds. What we need is collective will—a shared belief that working together will bring more stability, consistency and long-term opportunity to every player in the value chain.
If we can align as a community, we can unlock new volumes, new partners and a new level of operational confidence. The producers are ready. The terminals are capable. The end users—our customers—are increasingly vocal in their desire for cleaner fuel solutions.
Let’s not wait for the market to settle. Let’s be the ones who shape it.
To all the fuel dealers, wholesalers, terminal operators and producers reading this: Now is the time to connect, communicate and commit. Reach across your value chain. Don’t stop at the next link—stretch two or three links ahead and extend a hand. If you’re a dealer, lean on your wholesale partner. If you’re a wholesaler, help coordinate with terminals and producers. If you’re a producer, make yourself known to the network of heating oil leaders eager to engage.
This is a time for a collective rallying cry. Because Bioheat® fuel isn’t just a product—it’s a promise. A promise that our industry is ready to deliver cleaner energy, support U.S. agriculture and preserve the legacy of liquid fuels for the next generation.
Stronger together. Let’s secure our future, one gallon—and one relationship—at a time. ICM
Paul Nazzaro, a pioneer in transitioning home heating oil to Bioheat®, has a proven track record of elevating middle distillate fuel quality from average to high performing. Through intelligent oversight and advanced fuel additive technologies, Nazzaro has empowered the industry to adopt cleaner, more efficient solutions, redefining heating oil’s role in a sustainable, low-carbon future. Learn more at yourfuelsolution.com.
