What is Bioheat® fuel?

If you heat with oil, it's already in your tank!

The evolution of oil heat, Bioheat® fuel is Connecticut’s forward-thinking, new heating fuel. Bioheat blends ultra-low sulfur home heating fuel with 100% renewable, domestically-grown crops such as soybean, sunflower, linseed and sesame.

Bioheat® Fuel Is Making Waves

More and more people are tuning in to understand the true value of Bioheat® fuel.

Federal Tax Credits for Bio-fuel Powered Heating Appliances

With the implementation of the Inflation Reduction Act of 2022, Congress has created a $600 consumer income tax credit for the installation of renewable fuels compatible liquid fuel appliances. With this act, low-carbon liquid fuel heating appliances have been identified as a viable path for GHG reductions.

The heating appliance qualifies by meeting three conditions:
  1. Placed into service after December 31, 2022
  2. Meets or exceeds Energy Star 2021 (boilers and furnaces) efficiency criteria
  3. Rated by the manufacturer for use with fuel blends at least 20% of the volume of which consists of an eligible fuel (eligible fuel: biodiesel or renewable diesel)

If your liquid fuel fired appliances meet these qualifications, homeowners can claim the credit using IRS Form 5695 Residential Energy Credits. Form 5926 is being updated by the IRS and should be available early in 2023.

About the tax credits, Michael Devine, NORA President said. "The Inflation Reduction Act of 2022 is perhaps the most important environmental legislation since the Clean Air Act more than fifty years ago. The inclusion of biofuel powered liquid fuel appliances for homeowner Federal tax credits,displays validation by Congress for the inclusion of these appliances in our pursuit to eliminate carbon emissions from homes. This industry took up the quest many years ago with the introduction of the Advanced Biofuel -biodiesel, into home heating fuel. Today, millions of homes are using biodiesel in ever increasing blends."

Of course, the homeowner needs to be made aware of the credit’s availability. NORA suggests that manufacturers include this information to their supply chain, installers and the homeowner via product marketing, installation manuals and perhaps consumer literature. Retail installers also need to inform their customers of this opportunity to reduce their carbon impact while saving money.

The inclusion of this credit in the tax code is the result of a coordinated effort by many in the liquid fuel heating industry, particularly the National Energy & Fuels Institute with consultation from the Oilheat Manufacturers Association.

Control Your Environmental Future With Bioheat® fuel
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The NBB reperesents the biodiesel industry as the unifying and coordinating body for research and development in the United States. To learn more, click the PDF's below.

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It's energy efficient and saves you money.

Bioheat® fuel blends are cleaner and more energy efficient. Besides helping save the environment, Bioheat® fuel saves you money. It’s formulated to clean and lubricate your heating system, which means it can help to extend its life. With Bioheat® fuel, you pay nothing extra. You don’t need to buy new equipment or make modifications to your existing heating system and tank. Per year, the typical household using 800 gallons of Bioheat fuel blended with ultra-low sulfur heating oil could conserve 16 gallons annually.

Beyond saving you money,
Bioheat® fuel is just better.

Made with renewable resources

Connecticut’s Bioheat® home heating fuel contains up to 20% biodiesel. It is a safe, renewable energy resource made domestically from agricultural products that don’t disrupt food supplies. Bioheat® fuel is non-toxic, biodegradable and promotes better air quality by reducing greenhouse gas emissions. It also provides a cleaner, more energy efficient burn. The more renewable energy we use, the less impact there is on our planet.

American grown

The overwhelming majority of heating fuel comes from North America. The domestic production of Bioheat® fuel supports $16.8 billion in total economic impact, more than 62,000 jobs and $2.6 billion in wages paid.1


Connecticut delivered

Bioheat® fuel is delivered by the same family-owned businesses people have trusted for decades. Beyond just providing warmth, Bioheat® fuel retailers help their communities in so many ways – with everything from energy assessments to heating equipment tune-ups. You’re off to a great start heating with Bioheat® fuel.