Kinder Morgan to begin biodiesel production ‘imminently’

It has been reported that US energy company Kinder Morgan (KM) is to begin biodiesel production at two terminals sometime in the second quarter.

Recent modifications at facilities in Phoenix and Las Vegas, plus the recent price spike for RINs, means KM can allow for receipt, storage and blending of biodiesel.

‘This move is positive for us because we generate excess RINs at our transmix facilities,’ KM CEO Richard Kinder was quoted as saying.

Ethanol RINs are currently valued at around $0.70 (€0.53) each and biodiesel RINS specifically are placed at $0.83.

Kinder did not say which RINs types KM was dealing in but did add: ‘We are generating 700,000 gallons a month of excess RINs and we are selling them to a customer who wants to take all we have.’