Kinder Morgan and Neste partner on major US renewable fuels logistics project
Kinder Morgan, Inc. (KMI), one of North America’s largest energy infrastructure companies, is partnering with Finland-headed Neste Oyj, 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 (US), supporting increased production of renewable diesel, sustainable aviation fuel (SAF), and renewable feedstock for polymers and chemicals.
Upon completion of the project, Kinder Morgan’s Harvey, Louisiana (LA) facility will serve as the primary hub where Neste will store a variety of raw materials including, for example, the used cooking oil (UCO) it collects from more than 40 000 restaurants across the United States.
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 materials 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.
Large and long-term commitment
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. 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, said Jeremy Baines, President of Neste US.
The commitment is one of Neste’s largest to date in the country, 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. Renewable fuels offer an immediate way to reduce greenhouse gas (GHG) 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.
Utilize existing infrastructure
Because renewable products work with existing energy infrastructure, the vast network of pipelines, storage tanks, and distribution sites in North America can be used to rapidly scale their availability. This is a major advantage, enabling renewable products to replace fossil products faster and more affordably.
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 (US) gallons (≈ 3.78 million litres) of SAF have been supplied into SFO to date.
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.