Pipeline Company Opens New Biodiesel Facility in Colorado
Blending Facility to Help Improve Biodiesel Availability in the Region

JEFFERSON CITY, Mo.– A new biodiesel blending and storage facility officially opened today in Aurora, Colo., which will lead to increased availability of the cleaner-burning fuel for the area. Pipeline company Magellan Midstream Partners, L.P., owns the facility, which is located at a pre-existing petroleum terminal. The move demonstrates biodiesel’s increased integration into the nation’s petroleum infrastructure.

CHS Inc., a leading energy and grain-based foods company, will market and distribute the fuel from Magellan’s facility.

“Today we are witnessing a renewable energy revolution in our state and in our nation,” said U.S. Senator Ken Salazar (D-CO), who spoke at the opening ceremony. “This revolution is fueled by innovative firms like Magellan and CHS who understand that the production of clean, renewable biofuels not only strengthens America’s national and environmental security, but offers an unprecedented opportunity to spur economic growth and job creation in our rural communities as well. I commend them for their work and urge other firms to follow suit.”

The recently passed federal Energy Bill includes an expanded Renewable Fuels Standard, which for the first time will require more renewable fuel to be incorporated into the U.S. diesel market. Biodiesel and other renewable fuels depend on petroleum infrastructure such as the Magellan terminal for easy distribution.

“We are celebrating the opening of our 10th biodiesel distribution system inside one of our petroleum distribution terminals,” says Don Wellendorf, Magellan CEO. “We view renewable fuel distribution as a growth opportunity for our company and we are a trailblazer in this area. Our investment in biodiesel blending infrastructure at our Aurora facility is underpinned by our customer CHS, and the renewable fuel policies passed by Congress.”

The new biodiesel blending facility has an 84,000 gallon tank and will make biodiesel blends available to petroleum distributors, who can then supply their customers with the product. Those customers will likely include area fleets and could lead to more public pumps. Current Colorado biodiesel users include Jefferson County Public Schools, the City of Lakewood, New Belgium Brewery in Ft. Collins, Safeway and Aspen Ski Resort.

“By combining a biodiesel blending and storage facility with Magellan’s existing infrastructure, we can get blended fuel to our customers faster and more efficiently,” said Drew Combs of CHS. “Rack blending as opposed to splash blending provides more accuracy and higher quality as well as one-stop loading with a single bill-of-lading.”

Biodiesel can be made from any vegetable oil or animal fat. It can be blended with diesel fuel, usually at a blend of 20 percent (B20) or lower. Biodiesel significantly reduces emissions, and is one of the best greenhouse gas mitigation strategies available with today’s vehicle technology. Blends of B20 and below can be used in any diesel engine.

There are more than 40 terminals nationwide carrying biodiesel.

“We applaud Magellan for taking this step to include biodiesel storage and blending within this terminal,” says Joe Jobe, National Biodiesel Board CEO. “Developing blending infrastructure at the terminal level is critical to integrating biodiesel into the existing U.S. liquid fuel distribution system, which will greatly benefit our national energy security.”

The NBB is the national not-for-profit trade association representing the biodiesel industry as the coordinating body for advocacy, research and development in the United States.

Magellan Midstream Partners, L.P., owns and operates the nation’s longest pipeline for refined petroleum products. The company, headquartered in Tulsa, Okla., is in the process of constructing 145,000 barrels of biodiesel storage at its terminal in New Haven, Conn. Magellan is also exploring transportation opportunities for biodiesel blends, and is planning to transport a low-level biodiesel blend in its pipeline from Houston to Dallas early this year.

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