USD Clean Fuels LLC (USDCF) announced its intention to build a new biofuels terminal in National City, California, that will have the capability to transload renewable diesel, biodiesel, ethanol and sustainable aviation fuel (SAF). The terminal will be served by the BNSF Railway and will provide efficient transportation of clean fuels to the area from the Midwest and US Gulf Coast. Pending receipt of all local and state permits, the terminal is expected to be operational by early 2024.
The terminal development is supported by two investment-grade rated parties that signed long-term Terminal Service Agreements. The Terminal Services Agreements provide for the inbound shipment of renewable diesel, biodiesel, ethanol and SAF on rail, self-switching of the rail rack and four truck loading spots that are equipped with in-line injection capabilities to provide quality finished products to customers.
“We are excited to announce this terminal development for USDCF. It is the second terminal of a growing network of clean fuels terminals that we anticipate will ultimately include California, Oregon, Washington, Canada and the Texas Gulf Coast based on strong customer and railroad interest. These terminals will provide needed infrastructure that will make the downstream logistics of biofuel production and feedstocks more efficient,” said Bob Copher, senior vice president of USD Clean Fuels.
With mounting political and public pressure to reduce reliance on fossil fuels, reduce and re-use waste streams, and cut greenhouse gas emissions, clean fuels are becoming popular alternatives that comply with California’s goal of reducing greenhouse gas emissions throughout the state by 2030. In addition to supporting climate change mitigation efforts through the increased distribution of cleaner, renewable energy, the National City terminal will serve several underserved areas in San Diego County using local and regional employees and resources.As previously announced, USD Clean Fuels LLC is an entity formed by USD Group LLC to focus on providing production and logistics solutions to the growing market for clean energy transportation fuels.