Kinder Morgan is partnering with Neste to create a 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.
Headquartered in Espoo, Finland, Neste is a global producer of renewable diesel and sustainable aviation fuel refined from waste and residues, introducing renewable solutions to the polymers and chemicals industries. With operations in 14 countries, it produces, refines, and markets oil products, provides engineering services, and licenses production technologies.
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. The project, which is supported by a long-term commercial commitment from Neste, is expected to commence operations in Q1 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 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.”
“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 6800 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.