Pipeline operator Kinder Morgan Inc. plans to convert some Louisiana tank and piping infrastructure to hold used cooking oil and other feedstocks for Finnish renewable-fuels giant Neste, the companies announced Monday.
The two companies plan 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 the used cooking oil it collects from more than 40,000 restaurants across the United States.
Kinder Morgan is one of North America’s largest energy infrastructure companies; Neste, one of the leading providers of renewable and circular solutions.
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 begin 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,” Neste President Jeremy Baines said in the statement. “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 U.S., building on the company’s more than 15-year head start in creating an end-to-end renewable product value chain. Renewable fuels offer an immediate way to reduce greenhouse gas emissions from aviation and heavy duty road transport. Neste’s renewable feedstock for polymers and chemicals manufacturing can also significantly reduce the carbon footprint of the end products.
As one of North America’s largest terminal operators, Kinder Morgan Terminals brings to the table 80 million barrels of storage, 266 docks, 462 truck bays and 6,800 rail car spots.
Because renewable products work with existing energy infrastructure, the U.S.’s vast network of pipelines, storage tanks, and distribution sites can be used to rapidly scale their availability, the companies contend in the announcement, enabling renewable products to replace fossil products faster and more affordably.