How to Make Money on Renewables

NACS Show education session highlights opportunities for retailers to diversify their fuel offer.

October 17, 2016

ATLANTA – The Renewable Fuel Standard (RFS), enacted by Congress in 2007 to expand the biofuels market to 36 billion gallons by 2022, has significantly contributed to a larger market for biofuels and created opportunities and challenges for fuel retailers. As retailers figure out how to leverage the renewable fuels market to benefit their bottom line, more are entering the biofuels market with advanced strategies. Panelists at the NACS Show will discuss strategies to enable biofuels to benefit the retailer’s business.

In May, EPA released its draft proposal for the 2017 renewable volume obligations for the RFS. The proposed 2017 conventional biofuel (grain-based ethanol) volume of 14.8 billion gallons is higher than the 2016 amount of 14.5 billion gallons, but lower than the 15 billion gallons set by statute for the Renewable Fuel Standard. EPA has until November 30 to release the final rule. The schedule and volumetric requirements of the RFS are designed to increase the use of biofuels beyond the 10% ethanol and 2%–5% biodiesel blends commonly found in the market. Although there remain some equipment and vehicle compatibility hurdles to overcome, more retailers are finding profitable business models associated with such blends and have overcome these challenges. In addition, participation in the RFS RINs (renewable identification number) trading program can provide additional incentive for retailers to engage more fully in the biofuels market.

So how can fuel retailers make money on renewables? Find out at a NACS Show education session tomorrow afternoon, Tuesday, October 18, where speakers from convenience retail companies and renewable fuels groups will talk about opportunities for retailers to diversify their fuel offer and turn a profit. Attendees will hear from those who are living and breathing the renewable fuels market.

Education sessions are one of the top reasons the convenience store industry attends the NACS Show every year. This year’s event takes place this week, October 18-21, at the Georgia World Congress Center in Atlanta. Visit nacsshow.com to see the entire line-up of speakers.

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