Kinder Morgan, Neste partner renewable fuels logistics hub in US

Kinder Morgan, Neste partner for renewable fuels logistics hub in US

5:08 AM, 15th September 2021
Neste-storage-facility-Rotterdam-Netherlands
Neste's storage facility in Rotterdam, Netherlands. (Representative Image/File Photo)

ESPOO, FINLAND: Kinder Morgan Inc, one of North America’s largest energy infrastructure companies, is partnering with Neste, to create a premier domestic raw material storage and logistics hub in the United States, supporting increased production of renewable diesel, sustainable aviation fuel and renewable feedstock for polymers and chemicals.

The project is expected to commence operations in the first quarter of 2023. At Neste’s option, the facility can be further expanded.

Kinder Morgan’s Harvey, Louisiana facility will serve as the primary hub where Neste will store a variety of raw materials including, for example, the used cooking oil it collects from more than 40,000 restaurants across the US.

As part of the initial, committed phases of the project, Kinder Morgan will modify existing tanks and piping to enable segregated storage for a variety of raw material across 30 tanks. The scope of work also includes the installation of a new boiler for heating tanks and railcars and infrastructure improvements for rail, truck and marine movements.

“This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change,” said Jeremy Baines, president of Neste US. “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 commitment is one of Neste’s largest to date in the US, supporting a more resilient, flexible and sustainable supply chain that can keep pace with the company's growing production capacity and increasing global demand for lower-emission products.

In the long term, the project could also help improve the lifecycle climate benefits and competitiveness of Neste’s renewable products through more efficient and less carbon intensive supply chain operations. Renewable fuels offer an immediate way to reduce greenhouse gas emissions from aviation and heavy duty road transport in the US. Neste’s renewable feedstock for polymers and chemicals manufacturing can also significantly reduce the carbon footprint of the end products.

Kinder Morgan is a trusted partner for Neste, with a strong history of collaboration between the two companies. In 2020, Neste began supplying sustainable aviation fuel (SAF) directly to San

Francisco International (SFO) airport via a Kinder Morgan pipeline. More than 1 million gallons of SAF have been supplied into SFO to date.

“We are thrilled to partner with Neste, a global leader in renewable fuels, on this important logistics project. 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.
Because renewable products work with existing energy infrastructure, the US’s vast network of pipelines, storage tanks, and distribution sites can be used to rapidly scale their availability.

This is a major advantage, enabling renewable products to replace fossil products faster and more affordably.

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