Availability of biodiesel blends to increase in Sioux Falls area

PIERRE, S.D. – Agriculture officials in South Dakota and Minnesota are applauding a decision by a petroleum distribution company to increase the availability of biodiesel in their states.

South Dakota Secretary of Agriculture Bill Even and Minnesota Agriculture Commissioner Gene Hugoson say the decision of Magellan Midstream Partners, L.P. to install biodiesel blending equipment at their Sioux Falls terminal is a win-win situation for farmers and biodiesel consumers in both states.

Secretary Even says the facility will allow diesel consumers to gain better year-round access to quality biodiesel blends. “This decision will have positive implications for smoother distribution of biodiesel blends in South Dakota, Minnesota and surrounding states,” Even said. “This facility is another step toward reducing our dependency on foreign oil.”

“Magellan has been a good partner for the state of Minnesota as we developed our biodiesel programs,” added Commissioner Hugoson. “Magellan has supported the biodiesel industry since its infancy and they have been instrumental in ensuring the safe and effective blending of ethanol and biodiesel.”

Magellan Chief Operating Officer Mike Mears noted that consumers have begun to demand greater access to biofuels. “Our multi-million dollar investment in biodiesel infrastructure at the Sioux Falls terminal comes at a time when our customers are looking for state-of-the-art systems that accurately, efficiently and safely blend biodiesel into diesel fuel,” he said.

No state funds were used for the project. Installation of the new equipment at the Magellan terminal is expected to be completed in 2010 and biodiesel product will be available by next fall.