Company adds blending infrastructure in Minnesota

By Erin Voegele | August 23, 2011

A new fuel terminal in the Minneapolis metro area will offer biodiesel-blended fuels. The Rosemount Clean Energies facility, which sits on a 50-acre industrial site, will offer biofuel injection blending. According to information released by the company, the new site will provide local marketers and end-users increased savings and flexibility to customize products.

The terminal, which features a rail spur and 400,000 barrels of fuel storage capacity, is able to receive and ship product via rail, truck, tank and pipeline. Tim Yocum, one of the principles and chief manager of Rosemount Clean Energies, adds that the site also includes insulated, heated tanks for biodiesel.

Biodiesel mandates are one factor that made the region an attractive place to locate biodiesel blending infrastructure. "Biofuels are here to stay," Yocum said. "Canada just announced a 2 percent biodiesel requirement.  Minnesota is going to 10 percent next spring.  This new terminal will allow greater distribution of biofuels right where crops are grown and biofuels are produced.  Combine this with our refineries' ability to produce ultra-low sulfur diesel from North Dakota and Canadian crude, and we have opened a huge channel for energy independence through local supply."

Yocum noted, however, that those mandates are far from the only reason his company has chosen to establish a terminal location near Minneapolis. “The decision was [also] based off of our belief that we can drive enough economies of scale to make it cost effective,” he said. Although the biodiesel mandate might have kicked off the interest in the fuel, Yocum said that his company believes they can make it more cost effective to do so.

According to Yocum, the terminal will allow customers the ability to customize their blend.  “Now we can perfect biodiesel and additive blending in a highly efficient manner, collaborate with all parties to find an efficient medium to deliver new products to the marketplace, and offer marketers and energy users a range of high-performance products specific to their applications and market demands,” he added. While Yocum noted immediate demand for biodiesel-blended fuels leaving the terminal will be predominantly local, he said his company hopes to continue developing additional blending capacity in other regions. 

 

 
 
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