Houston Refiner Begins Biodiesel Blending

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etroleum refiner Motiva Enterprises has begun blending biodiesel with traditional motor fuel at a Dallas terminal, the Associated Press reported.

Advocates of the fuel said terminal blending is a critical step in bringing the fuel to more drivers, AP said.

Earth Biofuels Chief Executive Officer CEO Dennis McLaughlin, one of the partners in the $120,000 pilot program, said Motiva's move will help boost the fledgling biodiesel industry, AP reported.

Motiva said it has no immediate plans to provide blending at other terminals, though a company official said the program will allow the refiner to build business relationships with biodiesel distributors and customers.

Houston-based Motiva refines, distributes, and markets oil products and markets gasoline to about 8,900 Shell and Texaco gas stations, AP said.

Biodiesel sold in the United States has grown from 500,000 gallons in 1999 to about 75 million gallons last year.

By comparison, the U.S. burns roughly 140 billion gallons of gasoline and 4 billion gallons of ethanol each year, AP reported.