Oregon Pipeline Starts Moving Biodiesel

John Davis

KinderMorganBiodiesel has started moving through the 115-mile Oregon Pipeline.

The Houston (TX) Business Journal reports
that Kinder Morgan Energy Partners has shipped the first 100,000 barrels of B2 from Portland to Eugene:

“This new biodiesel shipment capability will help diesel fuel suppliers throughout Oregon meet a state biodiesel mandate that goes into effect on Oct. 1,” said KMP Products Pipeline President Tom Bannigan.

The pipeline is one of only a few in the United States that can regularly transport blended biodiesel — in this case, blended 2 percent (B2) — because it does not transport jet fuel. Though tested, biodiesel has not been approved for commercial aircraft, so Kinder Morgan (NYSE: KMP) and other pipeline companies can’t risk contaminating jet fuel shipments with biodiesel.

The pipeline joins the Southeastern United States’ Plantation Pipeline, which started commercially shipping biodiesel this past June.