As California plots a path to a net zero carbon future, low-carbon solutions are needed in the near to mid-term timeframe while alternative technologies are developed and made viable. Increased consumption of renewable diesel – a fuel created from renewable organic feedstocks such as used cooking oil, vegetable oils, and tallow that can be used in diesel engines without any modifications – is critical to a successful transition for California. Renewable diesel enables diesel cars and trucks, farm equipment, trains, and industrial equipment to reduce their emissions by up to 80% simply by changing the fuel they put in their existing engines. With the projects identified below, Kinder Morgan is committing to help California realize a reduced carbon emissions future today by building the infrastructure necessary to make renewable diesel supplies more readily available, now and well into the future.

 

Northern California RD Hub – Sacramento, California

Due to permitting challenges associated with rail, KMI has reconfigured the project to deliver renewable diesel by pipe to multiple locations in Northern California. Targeting the same first quarter of 2023 in-service as the rail project, KMI has identified the ability to move an aggregate of 20,000 barrels per day of renewable diesel on its northern pipeline system from Concord to the Bradshaw, San Jose, and Fresno markets. This project will capitalize on existing infrastructure to allow for a first quarter in-service, with potential capacity expandability available in subsequent phases. KMI is in the process of securing the necessary customer commitments to complete this transition.

Southern California RD Hub – Los Angeles to Inland Empire and San Diego, California

The Southern California renewable diesel hub project will enable customers to aggregate renewable diesel batches (R99) in the Los Angeles area and move them on SFPP, L.P.’s pipeline system to the high demand markets in Colton (inland Empire) and Mission Valley (San Diego), California, creating up to 20,000 bpd of blended diesel throughput capacity at its truck racks with the ability to expand in the future. San Diego is on track to be commissioned in November 2022, with Colton to follow. At Colton, the project will allow customers to deliver renewable diesel for blending with regular diesel and biodiesel for multiple concentrations of renewable fuel at our truck racks.

The buildout of the Southern California hub consists of three components. At Kinder Morgan’s Carson Terminal in the Port of Los Angeles, KMI is creating community renewable storage capacity with connectivity to both the SFPP pipeline system and the Carson Terminal truck rack. This project is on track to be in service in December 2022. At the Colton Terminal, modifications will create a new dedicated renewable diesel terminal. The renewable diesel will be delivered by the existing 16-inch SFPP pipeline segment from Watson to Colton. The terminal, designed to allow customers to blend their renewable diesel with biodiesel and CARB diesel to desired blends at the truck rack, is expected to accommodate up to 15,000 bpd of blended diesel throughput with expandability up to 20,000 bpd. Lastly, certain storage and truck rack capacity at Kinder Morgan’s Mission Valley Terminal will be transitioned to enable up to 5,000 bpd of renewable diesel throughput. This project is expected to be placed in service in the first quarter of 2023, and capacity is limited and available on a first-come, first-serve basis.