Kinder Morgan, Neste Partner on renewable fuels logistics in USA

14 Sep 2021, 01:16

  DF Report

Neste's storage facility in Rotterdam, Netherlands. Photo: for illustrative purposes by Neste.

Kinder Morgan, Inc. (NYSE: KMI), one of North America’s largest energy infrastructure companies, is partnering with Neste, one of the leading providers of renewable and circular solutions, 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.

Upon completion of the project, 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 United States, said Neste in a press release on Monday.

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.

The project, which is supported by a long-term commercial commitment from Neste, 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,” said Jeremy Baines, President of Neste U.S.

“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.”

With this project, Kinder Morgan is further demonstrating its commitment to offer low-carbon infrastructure solutions to the country's fast growing renewable fuels industry.

“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.