On behalf of

G & D I N T E G R A T E D W H I T E P A P E RS E P T E M B E R 2 0 1 5

Sponsored by

BIODIESELA more sustainable and environmentally-conscious approach to freight transportation

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ith the goal of reducing their carbon footprints and running environ-mentally-sustainable

operations, a growing number of shippers are turning to alternative fuel options for their transporta-tion networks. As a renewable, clean-burning fuel that is increasing U.S. energy independence, bio-diesel is not only a viable alterna-tive for fleet owners, shippers, and third-party logistics companies, but it also presents a full array of bene-fits that no fossil fuel can touch.

“We’ve been using biodiesel in our fleet for years, mainly because of our customers’ increas-ing concerns about environmental sustainability,” says Vince Buonassi, group manager of transpor-tation programs for third-party logistics provider (3PL) G&D Integrated. “In fact, more and more of our customers are asking for it and bringing up the topic of biodiesel these days—it’s definitely a growing trend.”

With reduction of all major emissions, greater energy independence, and 10 times less toxicity than table salt as just a few of the main bene-fits of biodiesel, this sustainable, renewable fuel resource also enhances engine life and provides superior lubricity for lower engine wear.

Over the next few pages we’ll explore the value of biodiesel, the benefits of working with a sus-tainability-minded transportation partner, and how shippers can use the fuel to reduce their carbon footprints across their entire logistics operations.

Achieving sustainable innovation Touted for its renewable properties, biodiesel is produced from vegetable oil or animal fat—both of which can be re-grown and reused, unlike fos-sil fuel products that are limited in quantity. Using biodiesel is also significantly less polluting, more economical, and adheres to the performance and health effects testing requirements of the Clean Air Act. Combined, these benefits make biodiesel a preferred choice for shippers looking to achieve sustainable innovation in an environmentally-con-scious world.

For fleet owners and transportation providers, biodiesel also enhances engine life, has excellent cold weather capability, enhanced power, cleaner fuel filters, and requires no engine modifications for blends of up to B20.

The biodiesel’s “B number” indicates the per-centage of biodiesel in the fuel. So, for example, B20 biodiesel is a blend of 20 percent biodiesel and 80 percent petroleum diesel. Biodiesel can be used at any mixture, but the B20 mixture is considered a typical blend for normal use in con-ventional diesel engines.

According to the American Lung Association of the Upper Midwest, biodiesel use also helps to decrease the level of toxins, greenhouse gases (GHGs), and cancer-causing agents that circulate in our air every day. “Using biodiesel significantly reduces many different types of emissions,” says Ellen Cornelius, environmental program manager for the American Lung Association in Illinois.

“For example, it reduces carbon monoxide, hydrocarbons, and particulate matter, all of which impact air quality.” When comparing B20 to pe-troleum diesel, Cornelius says that the former has 12 percent less carbon monoxide, 20 percent fewer hydrocarbons, 12 percent less particulate matter, and 20 percent fewer sulfates.

Biodiesel also has the potential to exceed compressed natural gas (CNG) when it comes to

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An in-depth look at the growing use of biodiesel in today’s transportation and logistics networks and the ease with which shippers can tap into this valuable resource

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lowering greenhouse gas (GHG) emissions, which are a contributor to climate change. According to the Argonne National Laboratory, compared to petroleum, CNG reduces GHG emissions by 6 percent to 11 percent and pure biodiesel reduces GHG by more than 52 percent. Green-house gases include methane, a gas known to have a 25 times greater impact on climate change than carbon dioxide and is released in the extraction of natural gas (US EPA 2015).

Dispelling the myths Biodiesel production in the U.S. has increased exponentially since 2000 when the nation was making 25 million gallons of the fuel annually. In 2014, that number hit 1.7 billion gallons, ac-cording to the National Biodiesel Board (NBB), a national trade association.

The NBB says that biodiesel production represents a “small but growing component of the annual U.S. on-road diesel market of about 35 billion to 40 billion gallons. Consistent with projected feedstock availability, the industry has established a goal of producing about 10 percent of the diesel transportation market by 2022.”

By the NBB’s count, there are currently about 200 biodiesel plants across the country—from Washington State to Iowa to North Carolina—with registered capacity to produce some 3 billion gallons of fuel. The industry supports more than 62,000 jobs and generates billions of dollars in GDP, household income, and tax revenues, according to the board.

Cornelius says that the American Lung As-sociation of the Upper Midwest supports the use of biodiesel not only for the obvious health advantages, but also because switching to B20 —and then reaping the environmental and health rewards of that move—can be handled with a simple transition.

“You don’t need to do any retrofitting to your fleet to start using B20,” says Cornelius, “yet the reduction of emissions is immediate and signifi-cant. Plus, it has fulfilled the Clean Air Act testing requirements.”

At G&D Integrated, Buonassi says that the 3PL has been seeing the word “biodiesel” included in a higher number of customer requests for proposals lately. Because the 3PL has historically worked closely with Illinois’ agricultural industry, it has been using biodiesel in its trucks for years.

During that time, the company has performed controlled, biodiesel-related tests that show, for example, that the fuel has no degradation of efficiency.

“You would expect a 3 percent decrease in miles per gallon efficiency with biodiesel,” says Buonassi, “but we were actually able to show that there was no degradation with the final prod-uct that we use.”

By conducting this and other tests, G&D has been able to prove biodiesel’s value to shippers that are reluctant to use the alternative fuel. “Some fleet owners are worried that biodiesel will harm their en-gines or that it will ‘gel up’ in the winter,” says Buon-assi. “As an early adopter and proponent of biodies-el, we’ve been able to help dispel those myths.”

If it runs on diesel…Produced by a chemical process called “trans-esterification” (the separation of glycerin from fat or vegetable oil), biodiesel leaves behind two products when it is manufactured – methyl esters (the “biodiesel”) and glycerin (a byproduct used in soaps and other products).

Over the years, the chemical process behind biodiesel’s production has been continuously im-proved to get to where it is today. Through those

efforts, biodiesel producers have been able to develop a fuel alternative that meets and exceeds the standards set for both the Environmental Protection Agency (EPA) and individual fleet and vehicle owners.

“In the early years of biodiesel production, there were some quality control issues and gelling problems to work through,” recalls John DeRosa,

There are currently about 200 biodiesel plants across the country—from Washington State to Iowa to North Carolina—with registered capacity to produce some 3 billion gallons of fuel.

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environmental programs director at the American Lung Association in Illinois. “Those issues have been resolved,” says DeRosa, who adds that organizations like the B2O Club in Illinois—which G&D Integrated is involved with—have played an integral role in helping to advance the use and awareness of biodiesel. A program developed by the Illinois Soybean Association and the Amer-ican Lung Association in Illinois, the B20 Club recognizes Illinois-based fleets running on blends of B20.

“We’re about 10 years into very active biofuel use here in Illinois, where mass transit and many others are using the alternative fuel 12 months out of the year,” says DeRosa. “So while this is still a relatively young industry, an increasing number of companies and organizations are turn-ing to it as an effective and economical alterna-tive that’s healthier and environmentally friendly.”

And remember, says Cornelius, that switching trucks over to biodiesel is easier than it sounds. “If it runs on diesel, it will run on biodiesel,” she says. “There are no required engine modifications to use biodiesel, and the majority of engine man-ufacturers include the use of blends up to B20 in their owners’ manuals. It is a quick and easy modification to reduce emissions.”

The push to go “green”Whether the goal is to use more biodiesel in company-owned vehicle fleets, or to work with transportation providers that have put time and effort into using the alternative fuel source in their trucks, shippers have more options than ever to “green up” their logistics networks.

“A lot of shippers that we’re working with

want to be green, and they want to be able to show that they’re taking the steps to become more environmentally conscious,” says Mark London, G&D’s vice president of sales and marketing, who sees more growth ahead for the biodiesel market as the U.S. strives to reduce its reliance on imported oil while also contributing to a healthier, less toxic atmosphere.

“Everyone wants to do their part, but many companies just don’t know how,” adds London. “Here at G&D Integrated, we help our customers bridge that gap and operate in a very sustain-able manner. It’s definitely a win-win for everyone involved.” ■

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Whether the goal is to use more biodiesel in company-owned vehicle fleets, or to work with transportation providers that have put time and effort into using the alternative fuel source in their trucks, shippers have more options than ever to “green up” their logistics networks.

G&D Integrated is your trusted partner for smart, efficient logistics. We bring over 100 years of experience advancing innovative global supply chain solutions.

We have a rich history that dates back to the early 1880s, when freight was delivered with horse-drawn wagons. Today, G&D Integrated provides domestic transportation, contract logistics, and supply chain services to a wide variety of industries with over 1,000 employees at 20 facilities across North America.

Today’s global supply chains are complex. The ability to be flexible is the key to your competitive edge. Based on your individual business needs, G&D Integrated works collaboratively with your team to optimize supply chain solutions. We customize those solutions from a broad portfolio of logistics services that encompass strategy through execution.

You can trust G&D Integrated to get you there. Experts in identifying and developing custom, dedicated transportation services to optimize the flow of goods in global supply chains, G&D Integrated provides a broad array of solutions. We are an asset-based provider so when you work with G&D Integrated for your transportation needs, it means increased reliability, control and peace of mind. We have the ability to leverage our truck fleet with the extended reach and capacity of our full brokerage capabilities including intermodal drayage.

G&D Integrated Corporate Offices 50 Commerce Drive Morton, IL 61550 888-289-0489 www.gdintegrated.com