Kinder Morgan Inc. (KMI) is partnering with Neste Oyj to create a raw material storage and logistics hub in the US supporting increased production of renewable diesel, sustainable aviation fuel (SAF), and renewable feedstock for polymers and chemicals. Upon completion of the project, KMI’s Harvey, La., terminal will serve as the primary hub at which Neste will store a variety of raw materials including, for example, 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 30 existing tanks and associated piping to enable segregated storage of a variety of raw materials. The work also includes installation of a new boiler for heating tanks and railcars and infrastructure improvements for rail, truck, and marine movement. The project, supported by a long-term commercial commitment from Neste, is expected to begin operations first-quarter 2023. At Neste’s option, it can be further expanded.
The 100-acre Harvey terminal, on the Mississippi River near New Orleans, has 192 tanks totaling more than 3 million bbl of storage. It includes three ship docks, one barge dock, and a rail terminal serviced by Union Pacific Railroad and New Orleans & Gulf Coast Railway Co.
KMI and Neste have partnered in the past. In 2020, Neste began supplying SAF directly to San Francisco International (SFO) airport via a Kinder Morgan pipeline. More than 1 million gal of SAF have been supplied to SFO to date.
