Sprague Energy Biofuel Facility in Oceanside, NY Now Open

First Long Island Terminal to Offer Ratio-blended Bioheat® and Biodiesel Fuels

OCEANSIDE, NY, Oct. 26, 2006 - Sprague Energy, an energy wholesaler at the forefront of clean fuels development and marketing, will be celebrating the opening of the company's newest Biofuel facility at its Oceanside, New York terminal on Thursday, October 26, 2006.  The event will begin at 11:30am.  Directions to the facility can be found at www.spragueenergy.com. 

Scheduled to speak at this event are John McClellan, President and CEO of Sprague Energy, Michael Seilback, Senior Director of Coalitions and Policy for the American Lung Association of New York State, Inc., Tom Lindberg, First Deputy Commissioner of New York State Department of Agriculture and Markets and the Town of Hempstead's Town Supervisor Kate Murray.

Sprague's expansion of their line of Biofuels will enable home heating and diesel fuel retailers on Long Island and surrounding areas to supply a precisely blended Biofuel product to their customers.  Sprague has a strong history of clean fuels marketing; Biofuel is the latest addition to a product line that includes Ultra Low Sulfur Diesel and Ethanol fuels.

"The opening of this latest Biofuel facility for Sprague Energy keeps us at the forefront of clean fuels distribution in the Northeast," said John McClellan, Sprague Energy President and CEO.  "By supplying BQ-9000 certified Biofuel, and utilizing our rack-blending truck injection system, we are ensuring that our customers receive the highest quality product, precisely blended to maximize the fuel's performance."  McClellan continued, "Sprague has chosen to take a leadership position in this important developing market because it is the right thing to do - for New York, for America and indeed, for the global environment."

Sprague Energy is the nation's first fuel oil terminal operator to earn BQ-9000 Certified Marketer status. The National Biodiesel Board's BQ-9000 auditing process is designed to ensure the highest quality standards across a fuel program.  Storage, sampling, testing, blending, shipping, distribution, and fuel management are all factored into earning BQ-9000 status.  This distinction illustrates Sprague's commitment to providing the highest quality Biofuels to its customers.

This latest addition to Sprague's product offering will further help New York State grow as a "green leader" in environmentally friendly fuels. New York has been the northeast's most aggressive proponent of Biofuels through various legislative initiatives. Through an executive order issued last year by Governor George Pataki, all state agencies and public authorities will be required to increase their purchase and use of Biofuels for heating their facilities and fueling their vehicles.

This past summer, the state put in place incentives that allow homeowners and small businesses to take an income tax credit when they use Biofuel as a heating fuel. In September, the house passed legislation reducing NY state diesel fuel taxes on B20 blends.

Sprague's Oceanside Biofuel facility, in addition to the Albany, NY Biofuel facility that opened this past March, will enable the state agencies to meet the executive order and allow New York residents to make the transition to using Biofuel in their diesel powered vehicles and home heating systems. 

The Oceanside facility has a tank that will house 13,200 gallons of 100% (or B-100) Biofuel for blending.  This facility houses a total of about 4,620,000 gallons of traditional petroleum based fuels.

In the past, handling, blending, and delivering Biofuel had been expensive and challenging relative to the same processes for fossil fuels. The terminal infrastructure required to bring the fuels together properly was not available.  Biofuel marketers used archaic "splash blending" techniques where the Biofuel and regular petroleum distillate were pumped into a tank truck, usually at two different locations, adding time and costs to the process, and also threatening the quality of the product because of the inconsistent blending efficiency.

Injecting Biofuel with Sprague's automated Biofuel rack blending system saves time and money as the Biofuel is mixed precisely with the fuel oil as the truck fills. "Our controlled storage environment keeps the Biofuel at the precise temperature," said Tim Keaveney, Marketing Manager at Sprague Energy, "enabling it to blend in perfect unison with fuel oil, resulting in a Biofuel product that meets our customers' usage standards."

Every gallon of Sprague Biofuel meets ASTM D 6751, the quality assurance standard enacted by The American Society of Testing and Manufacturing and endorsed by the National Biodiesel Board (NBB).  Sprague Energy will continue working with the NBB as it opens a similar facility in Portland, ME later this year.  Sprague also has plans to extend its Biofuel product elsewhere in its geographic footprint.