Kinder Morgan Inc.’s (KMI) renewable diesel (RD) hub projects in California are in full commercial operation, which may be the first to transport the alternative fuel by pipeline to inland destinations.
“We are confident that the best way to serve markets during this energy evolution is through an all-of-the-above energy mix,” said KMI’s Dax Sanders, president of Products Pipeline. “Pipelines continue to be the safest and most cost-efficient mode of long-haul transportation for liquid fuels.
The hubs are designed to move the low-emissions RD fuel to markets across Northern and Southern California.
The Southern California hub has capacity to deliver up to 20,000 boe/d of RD to San Diego and Colton. The hub also connects RD marine suppliers coming into the ports of Los Angeles and Long Beach for area markets.
The Northern California hub has capacity to deliver up to 21,000 boe/d from the San Francisco Bay Area to KMI terminals in Bradshaw, Fresno and San Jose.
“These projects present a significant opportunity to participate in the transition to lower emissions energy sources of the future while continuing to provide fuels still in demand today,”
Sanders said.
RD is diesel made from fats and oils, such as canola oil, but is chemically processed like petroleum diesel. The fuel is aimed as an alternative for trains, trucks and other vehicles.
Almost all domestically produced RD is used in California because of the state’s Low Carbon Fuel Standard (LCFS), according to the U.S. Department of Energy. The LCFS rule was enacted by the California Air Resources Board to decrease carbon emissions from transportation fuel.
