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Building the Biodiesel Infrastructure

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Building the Biodiesel Infrastructure

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    1. Building the Biodiesel Infrastructure Jess Hewitt President, Gulf Hydrocarbon jess.hewitt@gulfhydrocarbon.com Phone: +1 713-523-7755 www.gulfhydrocarbon.com

    2. Gulf Hydrocarbon: Biodiesel Marketing Company Private Company Started 1997 4 Biodiesel Terminals: Houston, Texas Amarillo, Texas Dallas, Texas Hammond, Indiana (Chicago)

    3. Brazil: Biodiesel and the USA Both Countries Love “BIODIESEL”

    4. Brazil: Biodiesel and the USA Neither Country Can Win the Italian Grand Prix in 2007 At least there are 2 Brazilian Drivers in Formula One. “How much is a Brazilian?”

    6. US Biodiesel Demand

    7. Biodiesel Production 65 additional biodiesel production facilities, Adding 1.46 billion gallons/year of biodiesel production Almost 600% increase in Production

    8. Biodiesel Demand Drivers Tax Credit $1/gallon Renewed Export of Tax Credit Denied Imports of Biodiesel Continue to Qualify for $1/gallon Blender’s Credit RINS: Trading Biased on Biodiesel 1.5 credits for every gallons Biodiesel

    9. Current Infrastructure About 1,800 petroleum distributors now offer biodiesel More than 1,000 retail locations Half are truck stops or truck accessible locations (biotrucker.com) 37 terminals

    10. Infrastructure Must Expand Must add more than 150 biodiesel terminals: 8.0 Million Gallons/Yr per Terminal Investment $350,000+ per Terminal Minimum Investment is $50 Million

    11. Gulf Hydrocarbon Focus Petroleum Terminals: Add Biodiesel and Ethanol to boost utilization and encourage more demand of petroleum products. Terminal value increases dramatically

    12. Boost Demand with Biodiesel? Biodiesel is only 5-20% of sales Diesel Demand increases as terminal is local source of Biodiesel Blends Diesel fuel sales increase with every Biodiesel Blend Biodiesel Creates Diesel Demand

    13. Case Study: Shut Down Terminal Petroleum Terminal Houston, Texas 160,000 Barrels Jet/Diesel Storage Teppco and Magellan Pipelines 3 Bay Truck Rack

    14. Petroleum Terminal

    15. Gulf Hydrocarbon Solution Add Biodiesel to Terminal 10 MB Tank, Dispense at the Rack Add Biodiesel Blend Customers Add Municipal Customer (B10) Add Petroleum Distributor (LSD) Total Cost: Greater than $300,000

    16. Results Terminal Sales Increase: Biodiesel Deliveries: 4-8 MGY Diesel Fuel Deliveries: 20-25 MGY

    17. Case Study: Underutilized Terminal Vegetable/Chemical Terminal Hammond, Indiana Excess Capacity Available No truck rack No Petroleum on Site

    18. Vegetable Oil Terminal

    19. Gulf Hydrocarbon Solution Add Metered Loading System Petroleum Style Loading System Add 24/7 Personnel Total Cost Less Than $100,000

    20. Tank 126,000 Gallons

    21. Petroleum-Style Loading System

    22. Results Terminal Sales Increase: Biodiesel Deliveries: 8 MGY

    23. Gulf Hydrocarbon Locate Petroleum and other Terminals for Biodiesel Expansion Locations in Major Metropolitan Areas Proximity to Pipelines/Barge In need of Sales Boost

    24. Building the Biodiesel Infrastructure Direct the nearly 2 billion gallons per year into terminals for distribution Utilize governmental assistance for adding biofuel infrastructure Creates a new “green” distribution system that can accommodate future growth of renewable fuels

    25. For More Information Jess Hewitt Gulf Hydrocarbon www.gulfhydrocarbon.com jess.hewitt@gulfhydrocarbon.com Phone: +1 713 523-7755

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