California Renewable Diesel Hub Projects
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

The Northern California renewable diesel hub project at Kinder Morgan’s Bradshaw Terminal near Sacramento will accommodate up to 15,000 barrels per day (bpd) of blended diesel throughput at the truck rack. Renewable diesel (R99) and biodiesel supplies will be railed to the terminal by customers (space for 22 rail cars), offloaded into storage, and then blended at the truck rack for distribution to surrounding markets via truck. This project will increase the biodiesel blending capabilities from the existing up to 5% limit to up to 20%. 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.

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.

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. 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.