Kinder Morgan to Blend Biodiesel in Las Vegas, Phoenix

KinderMorgan-LogoEnergy company Kinder Morgan has announced it will soon start blending biodiesel at its Las Vegas and Phoenix terminals. This Reuters article says the company made the decision based, in part, on the upswing in Renewable Identification Numbers values:

The company is benefitting from a spike in the price of renewable credits, known as RINs. The move is “positive for us because we generate excess RINs at our transmix facilities,” said CEO Richard Kinder during a conference call.

He said Kinder Morgan generates 700,000 gal/month of excess RINs. “We are selling them on a monthly basis to a customer who wants to take all we have,” said Kinder, without specifying the types of RINs.

Biodiesel RINs have risen from 45 cents/RIN at the beginning of this year to current prices of about 80-90 cents/RIN.

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