Vermont Biofuels Initiative: Demand Side
Concerns about climate change future availability of a reliable liquid fuel supply, coupled with a desire to promote more sustainable development activities, led to the formation of the Vermont Biodiesel Project (VBP) in 2004. The goal of the Project is to develop a market for biodiesel and Bioheat ® in the state through an integrated set of pilot programs and educational activities and is funded by the U.S. Department of Energy and the VSJF.
The Vermont Biodiesel Project’s market building activities were designed to inform parties interested in the use and/or production of biodiesel. VBP's two large scale pilot projects tested the use of biodiesel for heating when blended with No. 6 heating oil at the Waterbury facility of the Vermont Department of Buildings and General Services (BGS); and biodiesel in snowmaking operations at Smugglers’ Notch Resort. A report on the outcomes of these pilot projects was released in October, 2006.
VBP partners also leveraged their resources to develop an additional set of pilot projects for residential heating called the Vermont Bioheat Program. A report on the outcome of these pilot projects was released in August, 2006.
Over a two year period, the Vermont Biofuels Association and the Vermont Fuel Dealers Association collaborated on a range of workshops that helped fuel dealers, fuel users, agricultural producers and state leaders to learn more about biodiesel. Attendance at these events totaled more than 1,000 individuals including Governor Douglas, fuel dealers, farmers, institutional purchasers, investors, regulators, advocacy organizations, students and citizens.
During the past two years, biodiesel market building activities expanded dramatically from small individual-scale on-farm production to small and large scale commercial ventures that are emerging as part of the state’s energy sector. Consumption of biodiesel in Vermont reached one million gallons in 2006 and projections for upwards of five million gallons to be used by the end of 2007. As anticipated, VBP related activities generated growing demand for this renewable fuel (VBP related pilot projects alone used more than 78,500 gallons of blended biodiesel, leading to an estimated 179 tons of avoided greenhouse gas emissions). Several prominent companies such as Green Mountain Power and Green Mountain Coffee Roasters have converted their fleets to biodiesel and a number of Towns have switched to Bioheat in their municipal buildings.
As a result of the strong market signal being generated in the Green Mountain state, Biocardel Vermont — a newly formed Canadian company — announced their plans in August, 2006 to locate their new 4 million gallon per year biodiesel production facility in Swanton, Vermont. State funding support for this new venture was provided by the Vermont Economic Development Authority in the form of low interest loans and by Vermont Economic Progress Council tax credits.
The VBP provides a good example of how the VSJF leverages its state dollars to access federal and private funds. The project also offers an opportunity for economic pioneers in the state to foster stronger connections between the economy and natural environment which creates new sources of fuel that increases local economic opportunity, reduces dependence on foreign oil, and minimizes environmental harm.
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