Kinder Morgan plans to modify 30 existing tanks, and pipelines, to create segregated storage for raw material for Neste. This will include installing a new boiler to heat tanks and railcars, and infrastructure improvements for rail, truck and marine movements. The work, which is expected to be completed by Q1 2023, will be supported by the long-term commercial agreement with Neste.
Neste will store feedstocks for renewable diesel, sustainable aviation fuel (SAF), polymers and chemicals, including used cooking oil (UCO), which it already collects from more than 40,000 US restaurants. The company has an option to further expand the facility if and when required. Neste says that the project will support a ‘more resilient, flexible and sustainable supply chain’, in turn supporting its growing production capacity to meet demand. In the long-term, the partnership with Kinder Morgan could improve the climate benefits and competitiveness of Neste’s products, due to more efficient, less carbon-intensive supply chain operations.
Jeremy Baines, president of Neste US says: ‘This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change. 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.’
Kinder Morgan and Neste have previously partnered for sustainable projects, with Neste supplying SAF to San Francisco International airport through a Kinder Morgan pipeline since 2020, more than 1 million gallons so far. Kinder Morgan says that the agreement shows its commitment to offering low-carbon infrastructure solutions.
‘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,’ says John Schlosser, president of Kinder Morgan Terminals.
