Gulf Hydrocarbon, a provider of biodiesel to the petroleum industry, announced Friday, May 4, the addition of dyed red biodiesel to its product line at IFL terminal in Houston. The dye red is blended automatically into biodiesel at the loading rack in the terminal, mixed according to IRS protocol using a mechanical injection system to insert the dye red into the biodiesel.
The dye red biodiesel is used off-road by construction companies, ranchers and farmers, and the marine and drilling industries because of its nontaxable incentive provided by the U.S. government. The cost of dye red biodiesel is comparable to diesel, and current pricing can be found through OPIS or DTN.
“Dye red presents a wonderful nontaxable option for farmers, ranchers and off-road equipment haulers to better manage their logistics costs,” says Scott Hughes, director of governmental affairs for the National Biodiesel Board. “The tax incentives will continue to help develop the biodiesel industry and preserve our natural resources. Gulf Hydrocarbon is truly a pioneer in the industry by providing this product at the pump in their terminals.”
Gulf Hydrocarbon currently is offering dye red biodiesel to Louisiana and Texas distributors that sell the product to farmers. Distributors in the Louisiana and Texas area include O’Roarke Petroleum Products, Talen’s Marine and Temple Oil Co.