Kinder Morgan Inc is partnering with Neste to create a premier domestic raw material storage and logistics hub in the US, 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 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.
The project, which is supported by a long-term commercial commitment from Neste, is expected to commence operations in 1Q23. At Neste’s option, the facility can be further expanded.
Jeremy Baines, president of Neste US, said: “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.”
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.
It enhances Neste’s leading position, building on the company’s more than 15-year head start in creating an end-to-end renewable product value chain.
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.
Kinder Morgan is a trusted partner for Neste, with a strong history of collaboration between the two companies.
John Schlosser, President of Kinder Morgan Terminals, said: “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 bbl of storage, 266 docks, 462 truck bays and 6800 rail car spots, Kinder Morgan Terminals is uniquely positioned to play a leading role in the transition to renewable fuels.”
For more information visit www.kindermorgan.com
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