Kinder Morgan teams up with Neste for renewable fuels project in the USA

The companies, which had a strong history of collaboration, would create a domestic raw material storage and logistics hub to support the increased production of renewable diesel, sustainable aviation fuel (SAF) and renewable feedstock for polymers and chemicals, Neste said.

Upon completion, Kinder Morgan’s Harvey facility in Louisiana would become the primary hub where Neste would store a range of raw materials including the used cooking oil (UCO) it collected from more than 40,000 restaurants across the USA, according to the statement.

In the project’s initial stages, Kinder Morgan would modify existing tanks and piping for the segregated storage of a range of raw material across 30 tanks, Neste said. The project would also include a new boiler for heating tanks and railcars and infrastructure improvements for rail, truck and marine movements.

The project, which was supported by a long-term commercial commitment from Neste, was expected to become operational in the first quarter of 2023 with the possibility of expansion.

“This clearly shows the positive role America’s existing energy infrastructure can play in creating a sustainable future and fighting climate change,” Neste US president Jeremy Baines said.

Kinder Morgan owns an interest in, or operates, approximately 133,000km (83,000 miles) of pipelines and 144 terminals. The company’s pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO₂ and other products, and its terminals store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke.

Helsinki-based Neste refines waste, residues and raw materials into renewable fuels and sustainable feedstock for plastics and other materials. The company said it was also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials.