Houston-based energy infrastructure company Kinder Morgan Inc. (KMI) recently moved deeper into the implementation phase of its $88.6 million renewable expansion project, at its Harvey Terminal.
The project is being developed in partnership with Neste, a Finnish company that creates solutions for combatting climate change by refining waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics. The Harvey Terminal, located in Harvey, Louisiana, will become a primary domestic feedstock storage and logistics hub supporting additional renewable fuels production.
“Kinder Morgan and Neste have been trusted partners for several years and there are aligned goals between the two organizations,” said Michael Garthwaite, chief commercial officer with Kinder Morgan’s Terminals division. Beyond the site’s strategic location and KMI’s expertise in storage and terminal projects, the company’s shared history with Neste ultimately helped Kinder Morgan win the expansion project.
Garthwaite said Kinder Morgan is happy to have a strong collaboration with Neste on this renewable feedstock opportunity, adding that this type of project supports Kinder Morgan’s commitment to offering a solution to the country’s growing demand for renewable fuels.
“The conversion of existing tanks and piping into green infrastructure to support the growth of low carbon products will have positive impacts for years to come,” said Garthwaite. The full-phased investment includes retrofitting 30 tanks (about 15% of the facility’s existing tanks), installation of a new boiler for heating tanks and railcars and infrastructure improvements for rail, truck and marine movements. “The Harvey facility’s strategic location will allow Neste the flexibility to deliver their products to their desired end destinations whether that be domestic or for export,” said Garthwaite.
The feedstock stored at this facility can go into multiple-end uses, such as renewable diesel fuel, sustainable aviation fuel or into renewable plastics. Neste is the world’s first and only global producer and supplier of renewable products, and Garthwaite said that KMI is excited to help Neste build their main U.S. feedstock hub in the Lower River area of Louisiana.
Harvey Terminal is a part of Neste’s established growth strategy, ensuring that the company’s feedstock supply chain is able to keep pace with global demand for low emission renewable products. Neste will store a variety of renewable raw materials at the facility including used cooking oil and other feedstock collected from across the United States.
KMI’s engineering team is leading the design work for the project with Houston-based Orbital Engineering providing design support. Although the project is in its early phase of the construction process, Garthwaite said KMI has chosen Houston-based Tarsco to perform the tank modification work.
At full phase, Garthwaite said the Harvey Terminal project will create approximately 25 new full-time positions and estimates that about 100 contractor positions will be added for the construction phases, creating economic opportunity for the area.
“We’re proud of our long-standing commitment to and involvement with the community,” said Garthwaite. “I think this project is a great example of how existing infrastructure can be leveraged for the energy transition.”
At about 25% complete, Harvey Terminal is estimated to be in service at the end of the first quarter in 2023. Garthwaite was optimistic that this project could set the company up for continued growth in the renewable energy transition space, since KMI has a total capacity of 5 million barrels in the Lower River area.
In a previous statement, Neste U.S. President Jeremy Baines said “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.”
