FIRST Barge/Pipeline Accessible Terminal to Provide Biodiesel and BioheatTM

Sprague Energy (Portsmouth, N.H.) and Sunoco Logistics (Philadelphia) officially opened the newest and most expansive multiproduct biodiesel/BioheatTM supply and loading terminal in New Jersey on June 20, 2011.

Sprague is excited to supply the first commercially available advanced biofuel at the easily accessible Sunoco Logistics Newark terminal.

The multi-product fuel terminal will economically provide blended biodiesel and BioheatTM fuel in New Jersey.

The availability of the biofuels will overcome supply and infrastructure hurdles to provide a convenient centralized fueling location with seamless product loading while stimulating economic activity and green jobs in the region.

‘Energy is one of America’s foremost and most complex challenges,” said David Glendon, Sprague Energy president and CEO. ‘While high prices capture most of the attention today, sustainability, product reliability and reducing pollution are critical as well. Biodiesel is produced from renewable agricultural commodities, and reduces harmful emissions. This will help provide us and generations that follow with cleaner air to breathe.” Glendon continued, ‘Sprague has chosen to take a leadership position in this critical market because it is the right thing to do ‘ for New Jersey, for America and indeed, for the global environment.”

‘Our goal is to provide the terminal and pipeline infrastructure our customers demand,” said Michael J. Hennigan, president and COO of Sunoco Logistics Partners L.P. ‘By adding biodiesel and BioheatTM blending capability at the Newark terminal, Sunoco Logistics continues to meet our customers’ needs for biofuels distribution.”

Biodiesel and BioheatTM are clean burning fuels produced from readily

available, renewable resources. They are domestic, sustainable diesel and heating fuel replacements that meet strict quality standards and are the only nationally available advanced biofuels as recognized by the U.S. EPA. This private investment in Newark will afford users a clean, ready to use drop-in fuel replacement without costly equipment modifications and end user infrastructure costs.

Sprague will have the ability to provide multiple biodiesel and BioheatTM blends at the terminal for ultra low sulfur #2 diesel fuel, heating oil, and in the future, ultra low sulfur kerosene #l diesel fuel. Blends available are B2, B5, B10 and B20. Product will be drawn from 132,000 gallons bulk heat biodiesel storage, utilizing state of the art rack injection. The rack loading equipment is essential to provide precise metered quantities for the desired blend to meet customers’ demands and equipment manufacturers’ requirements.

In the past, handling, blending, and delivering biofuel had been expensive and challenging relative to the same processes for fossil fuels. The terminal infrastructure required to bring the fuels together properly was not available and is still not in some areas. Biofuel marketers used archaic “splash blending” techniques where the biofuel and regular petroleum distillate were pumped into a tank truck, usually at two different locations, adding time and costs to the process, and also threatening the quality of the product because of inconsistent blending methods. Injecting biodiesel with the automated rack blending system saves time and money while ensuring a homogeneous blend.