After 60 years, Grand Rapids-based Crystal Flash switches from fossil fuel to something more sustainable.

By Dan Calabrese

FOR 65 YEARS, Grand Rapids-based Crystal Flash followed a familiar business model. The local fuel distribution company, led by three generations of the Fehsenfeld family, operated a series of gas stations and convenience stores around Michigan.

But the changing nature of the fuel industry, combined with president Tom Fehsenfeld’s interest in environmental issues, led the company to sell all but one of its 33 gas station/ convenience store operations in 2002, and then turn in an entirely new direction.

The new Crystal Flash would function primarily as an energy innovation company—with a keen eye toward alternative, environmentally friendly ventures.

The transition has been successful, but it hasn’t been easy. While the company has found niche areas in which it could generate good results, it has also found that many alternative energy initiatives are easier said than done—and that shepherding the company’s employees through such a transition is a challenge.

Crystal Flash’s initial interest in a new direction was driven by environmental regulations related to its of underground storage tanks.

“We found a lot of contamination under the surface, and that was not only disturbing, but also really costly to remediate,” Fehsenfeld says. “That got us thinking in terms of what we can do to make things better.”

Once all of the company’s gas stations and convenience stores were sold off—save for one next to the headquarters—Crystal Flash embarked upon a series of alternative energy ventures. Some proved more feasible than others.

The most successful new venture to date has been the company’s foray into soy biodiesel fuel. Because biodiesel burns much cleaner than petroleum and offers inherently better lubricity than its counterpart, Crystal Flash has found a committed and growing constituency for the product among commercial fleets, governmental units and school districts. So far, much of the interest in soy biodiesel tends to come from markets that can gain financially from the product, or from those who support the ideals behind it. One group falls into both categories.

“We’ve had a lot of support from the farming community, and it’s gained us a lot of business with people who are associated with farming and its communities,” Fehsenfeld says. “Those in farming use a lot of deliverable fuels when producing all the food we get from agriculture, so this is really something that farmers like to see—our use of products that already come out of the agriculture industry.”

Crystal Flash offers fuel that is up to 100 percent biodiesel, and at this point, all its on-road diesel is blended with at least five percent soy biodiesel.

The company’s soy biodiesel blends are benefiting from the recent mandate of the Environmental Protection Agency that diesel engines must begin using Ultra Low Sulfur Diesel (ULSD) fuel. While ULSD is more environmentally friendly than diesel fuel with higher sulfur content, it does not provide the kind of lubrication that diesel engines need. Biodiesel, particularly of the soy-based variety, is the perfect solution.

Jeremy Whiddon, a Crystal Flash product developer, says customers appreciate the company’s ability to have a lubricity solution ready for them when they pull up to the pump.

“A lot of vehicles out there really need that high level of lubricity in order to not have injector problems, fuel-pump issues and various related maintenance problems,” Whiddon says. “So biodiesel makes an outstanding, organically derived, non-sulfur-based lubricator. By adding as little as two percent biodiesel, you increase the lubricity of your fuel by more than 66 percent.”

Another green-friendly initiative for Crystal Flash has been the collection and resale of used motor oil. While Crystal Flash has been in the business for more than a decade, it took on a greater importance in the company’s larger strategic picture after the sale of the gas stations.

The company’s profit margins were tight during the transitional years, and Fehsenfeld says there was a lot of work to do bringing key people in the company on board with the changes. Salespeople in the field needed time to get used to emphasizing new products when their customers were very comfortable with the traditional ones.

“Where a lot of our competitors were really focused on efficiency and lowering their costs of operation, we had a lot of our talent tied up in looking at alternative fuels,” he says. “And that caused a lot of controversy. A couple of years ago, we had to refocus on improving our efficiency of operation.”

Today, the company’s soy biodiesel, used motor oil and wind ventures are adding to the health of the company’s bottom line, and while Crystal Flash continues to pursue new alternative ventures, it has struck a balance between these innovations and more traditional lines like servicing truck fleets and providing home heating oil.

Fehsenfeld continues to be interested in new alternatives, but he is cautious.

“One of the things that happens when you look at different alternative energy programs is that many of the opportunities are really ripe to jump into and run with,” he says. “But some of them are more hype and dreaming than realistic opportunity.”

Even so, Crystal Flash has successfully navigated its way through a major change in direction, which is no easy task for any company—especially one that operated in essentially the same way for 65 years. It looks like the next 65 years—while they will certainly be different—may be just as successful as the first.