RKA Petroleum sees increased demand for biofuel

RKA Petroleum, a family-owed fuel distribution company head-quartered in Romulus, has evolved its business to meet its customers’ growing demand for biofuels. The company plans to invest $2 million into the facility over the next six months to increase the speed of its truck-filling process, install a second biodiesel storage tank and develop a new automated system to improve the biofuel blending the company does on-site. The company’s overall goal, explains its director of biofuels and information systems Jason Hittleman, is to “promote and grow this biofuel industry locally.”

RKA has been in the petroleum business for 60 years, but started to secure and distribute biodiesel only five years ago, albeit at a small scale. As demand continued to grow, the company made the decision to expand their biodiesel holding capacity.  

In March 2006, they built a heated storage tank that could hold 30,000 gallons of B100 (100% biodiesel). They also developed an at-the-rack blending process that is able to precisely mix the B100 to the desired end-fuel proportion (typically B20, B10 or B5). Previously, on-site mixing was less exacting, which made proper blending and accurate accounting and tax reporting extremely difficult. Stringent records are important because RKA receives both federal and state tax credits for the biofuel they distribute, of which Hittleman says, “We can pass all that savings onto the end user right when they purchase it.”

RKA is the only petroleum terminal—out of 40 total—in Michigan delivering pre-blended biodiesel and one of approximately 15—out of more than 400—in the entire country. Hittleman stresses the importance of the technology they are employing to the continued growth of the biodiesel industry. “We really want to make sure this fuel integrates,” because, he explains, “it’s a great fuel. It has a high cetane rating—which is the diesel equivalent of octane—and great lubricity. It cleans the engine out, there are less emissions and it is more economical than buying regular diesel.”

Although Hittleman declined to reveal the quantity of biodiesel his company has distributed in the last year, he said, “We cannot keep that tank filled, we need more storage. And we’ve probably quadrupled the demand because of the efficiency of the blending process.” He estimates  

RKA is also involved in the distribution of ethanol, which is currently seeing a resurgence in popularity as a gasoline additive due to the ban of MTBE, a chemical additive that was found to be a water-pollutant.

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Source: Jason Hittleman, RKA Petroleum

Writer: Kelli B. Kavanaugh

Image of RKA’s biodiesel storage tank courtesy of RKA Petroleum