USDA Invests over $5 Million in Biofuel Infrastructure Projects that Include Kansas

Expanding Availability and Infrastructure of Higher-Blend Renewable Fuels in Salina, McPherson and Kansas City, Kansas

TOPEKA, Aug. 19, 2021 – United States Department of Agriculture (USDA) Acting State Director for Rural Development Kansas Dan Fischer today announced that USDA is investing $5.19 million to build infrastructure to expand the availability of higher-blend renewable biofuels through three projects in Kansas.

USDA is making the awards under the Higher Blends Infrastructure Incentive Program. The funding will help significantly increase the use of biofuels derived from U.S. agricultural products and prioritize climate-smart solutions that will help rural America.

“Investments like these increase energy options for Kansas consumers,” Fischer said. “By expanding the availability of higher-blend biofuels, we’re also expanding an important market for Kansas farmers.”

Today’s announcement includes investments in California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Rhode Island, Texas and Wisconsin.

The projects involving Kansas include:

• TA Operating LLC will replace 28 dispensers and two storage tanks at two fueling stations in Salina, Kan. and Gary, Ind. This project is a $190,000 USDA investment and is expected to increase the amount of ethanol sold by 1,104,682 gallons per year. 
• Three G Energy Inc. will replace four dispensers at a fueling station in McPherson, Kan. This project is a $117,000 USDA investment and is expected to increase the amount of ethanol sold by 894,742 gallons per year. 
• Magellan Pipeline Company LP will install a 25,000-barrel storage tank, piping, pumps, gauging, manways, tank insertion heater and insulation, and small biodiesel mechanical building at a location in Kansas City, Kan. It also will install a 10,000-barrel storage tank with piping, pumps, gauging, manways tank insertion heater and insulation, and small biodiesel mechanical building at a distribution facility in Brookline, Mo. This project is a $ 4,884,077 USDA investment and is expected to increase the amount of biodiesel sold by 223,661,458 gallons per year. 

Background:

Today’s announcement marks the one-year anniversary of the Higher Blends Infrastructure Incentive Program. To date, USDA has invested $66.4 million for projects that are expected to increase biofuels sales by 1.2 billion gallons annually.

 

Through this program, USDA helps transportation fueling and biodiesel distribution facilities offer higher ethanol and biodiesel blends to customers by sharing the costs to install fuel pumps, equipment and infrastructure. For more information on the program, visit www.rd.usda.gov/hbiip. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

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