CONCORD, N.H. – Biodiesel fuel was about to gain another foothold in New England on Friday when an oil company planned to open the first distribution terminal in New Hampshire.

Rymes Propane and Oils recently received its first shipment of biodiesel at its storage facility in Stratford, and will sell it wholesale at five retail fueling stations in Keene, Peterborough, Antrim, Greenfield and Loudon.

A news conference was scheduled for Friday to announce the change.

The only place now believed to be selling it retail in the state is Fleming Oil Co. station in Chesterfield. However, it also is being used by Keene State College, National Guard at Pease International Tradeport, Cranmore ski area and maybe few others.

“It’s gone great, even in the cold weather,” said Stephen Russell, fleet services superintendent for Keene, which has been using about 50,000 gallons of biodiesel fuel a year since July 2002.

“It really does reduce the nasties that come out of the exhaust emissions.”

He estimated it has reduced toxic emissions by about 30 percent.

Fleming has been selling it since December.

“It’s going pretty well. We sell about 4,000 gallons a month. We’ve been pleased with the results,” President Rick Fleming said.

Biodiesel, which is used more in the Midwest, typically is a blend of 20 percent vegetable oil-based diesel fuel replacement and 80 percent regular diesel fuel. It is made from natural oils, such as soybean or canola oil, or recycled restaurant grease. It burns cleaner than gasoline or diesel fuel, and doesn’t have the odor.

In 2002, 15 million gallons of biodiesel were produced in the country, and that increased to 25 million by the end of 2003, according to Jenna Higgins of the National Biodiesel Board in Jefferson City, Mo.

About 400 major fleets across the country are using it – companies, schools, states, the federal government, national parks and municipalities, she said.

“It continues to grow almost weekly,” Higgins said of the number of users, and noted the increasing cost of fuel. “It underscores the need for domestically produced fuel.”

The cost right now generally is about 20 to 30 cents more than regular diesel.

Becky Ohler, air quality engineer with the state Department of Environmental Services and coordinator of the Granite State Clean Cities Coalition, said companies and municipalities are calling every week to ask about biodiesel, which also can be used for home heating, farm use and energy production.

“All of a sudden, we’ve had interest in New Hampshire just take off,” she said.

Until now, it could only be bought in the area from a company in Massachusetts. An alternative power company in Arundel, Maine, sells it retail to individuals, and there are a few such places in Vermont.

John Rymes, vice president of Rymes, primarily a home heating oil company, said the goal is twofold: to be profitable and to protect the environment.

“This product enables us to do both,” he said.

“We’re in the oil industry. We’re a young management team. We all have kids who live in New Hampshire, so the environment here is very dear to us.”

He said Rymes has received calls from numerous municipalities and others about the product, but he expected it would be a few years before the company can make a profit on biodiesel.

Sometimes “you have to go out and grow the market,” he said.