Neste and Kinder Morgan partner on renewable fuels logistics hub in U.S.

Finnish renewable fuels producer Neste Oyj and U.S. energy infrastructure company Kinder Morgan Inc. have announced a partnership to establish a major renewable fuel feedstock storage and logistics hub in the United States. The project will center on Kinder Morgan's existing terminal in Harvey, Louisiana.

The new hub will facilitate the storage and distribution of raw materials used by Neste for producing renewable diesel, sustainable aviation fuel (SAF), and renewable feedstocks for polymers and chemicals. The facility will handle various materials, including used cooking oil collected by Neste from over 40,000 restaurants across the U.S.

Kinder Morgan will modify 30 existing storage tanks and associated piping to enable segregated storage for different raw materials. Infrastructure improvements will also include a new boiler for heating tanks and railcars, along with enhanced capabilities for rail, truck, and marine transport. Neste has committed to a long-term commercial agreement for the facility, which is expected to begin operations in the first quarter of 2023, with an option for future expansion.

Jeremy Baines, President of Neste U.S., stated that the project demonstrates how existing energy infrastructure can support a sustainable future and the fight against climate change. He highlighted the collaboration as a transformation of terminal assets into green infrastructure, enabling more businesses to utilize renewable fuels and products.