The biofuels sector experienced a plant construction boom prior to the recession, but it stopped short of providing enough infrastructure needed to market the fuels. Now, downstream distribution is catching up to fulfill requirements of the federal Renewable Fuel Standard, which requires about 14 billion gallons of ethanol and 800 million gallons of biodiesel blended into U.S. fuels this year.
RFS forces the traditional oil industry to introduce biofuels into the retail market. Sinclair Oil, Marathon Oil, Magellan Midstream Partners and others have announced plans this year to upgrade terminals to increase biofuel capabilities. The construction industry is both a supplier and consumer: While producers look to construction firms to help with the upgrades, construction equipment increasingly runs on biofuels.