Kinder Morgan Inc. (KMI) is partnering with Neste to create a raw material storage and logistics hub at its Harvey, LA, terminal.
The hub is to be used to help ramp up production of renewable diesel, sustainable aviation fuel (SAF) and renewable feedstock for polymers and chemicals.
Neste would store a variety of raw materials at the hub, including the used cooking oil it collects from more than 40,000 restaurants across the United States. Helsinki-based Neste transforms waste, residues and other raw materials into renewable fuels and sustainable feedstock for plastics and other materials.
As part of the initial, committed phases of the project, Kinder Morgan would modify existing tanks and piping to enable segregated storage for a variety of raw material across 30 tanks. Work is to also include the installation of a new boiler for heating tanks and railcars and infrastructure improvements for rail, truck and marine movements.
The project is expected to commence operations in the first quarter of 2023. At Neste’s option, the facility can be further expanded.
“This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change,” Neste U.S. head Jeremy Baines said. “Neste and Kinder Morgan are transforming existing terminal assets into what can be considered green infrastructure, which will ultimately enable more American businesses and cities to power their fleets and supply chains with renewable fuels and other products.”
The companies partnered previously when Neste began supplying SAF directly to San Francisco International airport via a Kinder Morgan pipeline. More than 1 million gallons of the fuel have been supplied to the airport so far.
“As North America’s largest terminal operator with existing infrastructure including 80 million barrels of storage, 266 docks, 462 truck bays and 6,800 rail car spots, Kinder Morgan Terminals is uniquely positioned to play a leading role in the transition to renewable fuels,” said John Schlosser, president of Kinder Morgan Terminals.The deal is part of KMI’s new interest in low carbon investments. In August, the company closed on its $310 million acquisition of Kinetrex Energy. The acquisition included liquefied natural gas production and fueling facilities, a 50% interest in a landfill-based renewable natural gas (RNG) facility in Indiana, and commercial agreements for three additional RNG facilities.
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