- Diversification and taking control of distribution are two ways Midlands Biofuels of South Carolina is keeping its doors open.
- My friend in the industry, Midlands Biofuels owner “Bio” Joe Renwick, recently shared with me some great news that is ultimately helping his business increase margins and keep operations going.
- “Now I’m buying my petroleum diesel from the landlord and making more per gallon,” “Bio” Joe says.
- “When you own the truck, you control the numbers.” He says he’s purchasing diesel from his landlord at cost (roughly $1.86 a gallon) plus 8 cents delivery charge on 30-day terms. After the 42-cent tax and 8-cent delivery charge, “Bio” Joe can sell the fuel for $2.65 making around 30 cents a gallon on just the petro.
- He now sells on- and off-road fuel direct to small businesses and farmers, blending in biodiesel at their requested level and adjusting the price accordingly.
- He says Midlands Biofuels just signed up Richland County library to fuel them with B50 in its book delivery trucks.
- Midlands Biofuels is still making biodiesel every day, but not as much as it could. “We have the ability to make three batches a day, but right now we’re only making one,” “Bio” Joe says.
- Midlands fuels its own fleet with bio, and sells its blended product direct to customers. The company also still sells blends to the city of Columbia and University of South Carolina, but on a bid process rather than through contract. “We usually win the bid,” he says. The difference is that now, the company makes a good margin on the diesel portion of the blend, in addition to whatever the market will allow it to fetch for the bio portion.
snippets from article: http://www.biodieselmagazine.com/blog/article/2015/07/biodiesel-producer-takes-control-of-distribution-diversifies
Biodiesel Magazine - The Latest News and Data About Biodiesel Production
Thank You for stopping by-Share and Comment below.
If additional information in needed or you have a question let me know.
Together we can make a difference and create a future that will benefit everyone.
Build a Green StLouis
Green Building Tips and Resources via: Scotty-
St Louis Renewable Energy Green Blog