NuStar to build ethanol storage facility and unit train

NuStar and biofuel supply chain company Eco-Energy Holdings are to build an ethanol storage facility complete with unit train infrastructure after forming a partnership.

To be located at NuStar's Dumfries site in Virginia, US, the facility will benefit the northern Virginia and Washington, DC markets. It will comprise ethanol unloading, storage and truck loading solutions.

The terminal will be able to store around 150,000 barrels of ethanol, with a 400,000 barrel-a-month distribution capacity. The unit train facility will be built to receive up to 96 rail car unit trains via CSX Transportation.

Operations at the new facility are slated to begin in the third quarter of 2013, with each company covering its own development, construction and refurbishment investments.

Gwaine Ton, Eco-Energy's CFO and COO, was reported as saying: 'This is a large and growing market and this project reflects how multiple partners (Eco-Energy, NuStar and CSX) can work together to develop a long-term supply chain solution that benefits biofuel producers and end users... The site will be open for utilisation by both producers and end users seeking to effectively distribute biofuels in the region.'