If your building still runs on traditional heating oil, here are six facts every NYC property manager should know about Bioheat fuel — from compliance to system efficiency — to help you stay ahead of city regulations and rising energy costs.
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Bioheat is a blend of ultra-low-sulfur oil and biodiesel.
By definition, Bioheat fuel is “a low-carbon fuel made by blending ultra-low sulfur heating oil with biodiesel.” In practice it’s the same clean No. 2 heating oil (15 ppm sulfur max) used in older furnaces, mixed with 5–20% biodiesel from plant or waste oils. The biodiesel is derived from renewable resources (soybean oil, used cooking grease, etc.), so every gallon of Bioheat replaces part of the petroleum oil with a domestic, renewable feedstock. In short, Bioheat is literally “residential heating oil” turned ultra-clean – it still delivers the same BTUs as old oil, but with a greener formula.
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NYC and NY State require Bioheat blends.
Thanks to city and state compliance regulations, using Bioheat isn’t optional – it’s the law. New York State now requires at least a 5% biodiesel blend (B5) in all heating oil, increasing to 10% by July 2025 and 20% by 2030. NYC has followed suit: after mandating 2% biodiesel in 2012, it steadily raised the minimum to 5% and will reach 10% (B10) by 2025, then 20% by 2030. At the same time, the city banned dirtier fuels: all No. 2 oil is ultra-low-sulfur (15 ppm) and heavier #4/#6 oils are being phased out. In short, your next heating oil delivery is already Bioheat – the only question is how much biodiesel it contains.
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Bioheat dramatically cuts harmful emissions.
Because biodiesel contains oxygen and essentially no sulfur, burning Bioheat yields far fewer pollutants than old oil. Compared to high-sulfur fuel, Bioheat combustion produces far less sulfur dioxide (SO₂) and soot, and up to 90% lower greenhouse gases. For example, NYC data show even a B5 blend (5% biodiesel) cut emissions as much as removing 45,000 cars from the road; raising it to B20 is like removing 175,000 cars. Independent testing also confirms big gains: a B20 blend (80% oil/20% biodiesel) slashed sulfur-oxide emissions by about 80%, NOₓ by ~20%, and CO₂ by ~15%. In practice, Bioheat’s ultra-low-sulfur formula means virtually no soot or acid rain from oil heat – it’s about as clean-burning as a fossil fuel can be.
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No furnace or boiler modifications are needed.
One of the best things about Bioheat is that it’s a drop-in fuel. In nearly all cases your existing oil burner, tank and controls work exactly the same with Bioheat as with regular oil. You don’t need to buy new equipment or adjust your furnace. Heating professionals report that Bioheat even tends to lubricate fuel lines and burners. In short, switching to Bioheat is as simple as ordering it – it works seamlessly in any standard oil-fired heating system.
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Your heating system will run cleaner and more efficiently.
Because Bioheat burns cleaner, it actually helps your equipment. The virtually zero sulfur and extra oxygen in biodiesel mean your boiler or furnace stays much cleaner inside. Fuel nozzles, heat exchangers and flues accumulate far fewer carbon deposits or soot over time. This cleaner burn translates to higher efficiency (more heat per gallon) and less routine maintenance. Equipment manufacturers and studies agree: ultra-low-sulfur Bioheat can extend equipment life and increase your heating system’s efficiency compared to old high-sulfur oil. In practice most users notice no change in comfort – just lower soot and odor, and a slightly cleaner furnace operation.
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New York offers incentives for using Bioheat.
As a bonus, the state will pay you to use Bioheat. New York’s Clean Heating Fuel tax credit gives owners of residential buildings (including multi-family homes, co-ops and condos) up to 20¢/gallon back for Bioheat. The credit is $0.01 per % biodiesel in the blend (up to 20% biodiesel), so B10 earns 10¢/gal, B20 earns 20¢/gal. For example, burning 1,000 gal of B20 saves you $200 in tax credit. This incentive (in effect since 2012) effectively offsets any price premium for biodiesel blends. Plus, by choosing Bioheat you’re using a renewable fuel: the biodiesel is made from domestic plant oils and recycled fats, reducing reliance on crude oil and supporting local farmers.
In summary, Bioheat fuel is simply a cleaner, greener version of heating oil – one that New York state and city now require. It works in your existing system without hassle, cuts emissions by up to ~90%, improves your boiler’s efficiency, and even comes with tax credits. For NYC property managers relying on oil heat, Bioheat has quickly become the new normal. Switching (or continuing) to Bioheat means you heat your building with the same reliable warmth as before, but with far less pollution and more fuel efficiency
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