Pipeline operator Kinder Morgan Inc. is converting some of Louisiana’s oil and gas infrastructure to hold used cooking oil and other feedstocks for Finnish renewable-fuels giant Neste, the companies announced Monday.
The two companies also plan to develop a raw material storage facility to support the production of renewable fuels and feedstock for polymers and chemicals at Kinder Morgan’s plant in Harvey, just south of New Orleans. The facility will store the cooking oil Neste collects from more than 40,000 American restaurants.
This latest project along with the possible renewable diesel complex under consideration at PBF Chalmette Refinery and the planned Grön Fuels renewable energy complex in West Baton Rouge Parish could put the state on the path to becoming a hub for alternative fuels.
As part of the initial, committed phases of the project, Kinder Morgan will modify its existing tanks and piping to enable segregated storage for a variety of raw materials. The project, which is supported by a long-term commercial commitment from Neste, is expected to begin operations in early 2023.
“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 says in a prepared 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.”
Because renewable products work with existing energy infrastructure, the nation’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. Read the full announcement.