Heating Oil to Contain Biofuel by 2010

These vertical bags contain algae being grown for biofuel. (image: green-fab.com)

At the recent national oilheat industry policy summit, leaders called for all heating oil to include at least 2 percent biofuel by July 2010, and aimed to increase that percentage in the future. This initiative is part of a statement approved by the leadership that would move the industry in a green and sustainable direction.

Biofuels—which can be made from soybeans, algae, and even wood chips, among many other sources—promise lower greenhouse gas emissions and provide a sustainable and domestic energy source. Biofuel blends can already be found in the northeastern United States under the trademarked name Bioheat.

Green technology can sometimes come with a heavier price tag, but there are three reasons to think biofuel blends are a smart move when it comes to the bottom line. First, this industry-wide endorsement will spur new investment to cheaply produce biofuel. Second, by adding to the supply of heating oil and reducing demand for petroleum-based heating oil, blends should work to keep down overall heating oil prices. Third, if your home heating oil comes in part from a domestic and renewable energy source, that could help free the price of heating oil from the volatility of the global oil market.

While your home heating oil may soon be 2 percent different, you probably won’t notice a thing. Biofuel blends have been thoroughly tested and work in existing heating equipment with no drawbacks compared to regular heating oil.

Biofuels have traditionally been more costly to produce than heating oil, and taken so much energy to produce that they ended up conserving little. For those reasons, many heating oil dealers do not currently offer biofuel blends. However, new technologies have made biofuels more efficient on both counts, and the recent announcement by the industry means that biofuels will become more widely available.