USDA to fund Oklahoma biofuels projects

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A project involving Oklahoma-based Magellan Pipeline company is among those in 23 states receiving $26 million from the U.S. Department of Agriculture to build infrastructure and expand the availability of higher-blend renewable biofuels by 822 million gallons a year.

Magellan will receive $4,884,077 in a Rural Development investment to expand the sales and use of renewable fuels. It will install a 10,000-barrel storage tank with piping, pumps, gauging, manways tank insertion heater and insulation and a small biodiesel mechanical building at a distribution facility in Brookline, Missouri. It is the largest of the programs funded under the special program.

Magellan will also install a 25,000 barrel storage tank and similar operation in Kansas City, Kansas. The USDA stated that the project is expected to increase the amount of biodiesel sold by 223,661,458 gallons a year.

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The Fuel Marketing Corporation will receive $87,614 from the USDA to expand the sales and use of the renewable fuels. The firm will install automation software at distribution facilities in Tulsa and two sites in Missouri. The project is expected to increase the amount of biodiesel sold by 1,212,376 gallons a year.


A $190,000 project will involve replacement of dispensers and two storage tanks at two fueling stations in Salina, Kansas and another in Gary, Indiana.

Another $117,000 will finance a Three G Energy Inc. project involving the replacement of dispensers at a fueling station in McPherson, Kansas.

The awards are made under the USDA’s Higher Blends Infrastructure Incentive Program with a goal of boosting the use of biofuels derived from agricultural products.

The 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.





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