HOUSTON–(BUSINESS WIRE)–USD Clean Fuels LLC (USDCF) announced its intention to build a new biofuels terminal in National City, CA 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.
About USD Group LLC
USD Group LLC (USDG), which owns the general partner of USD Partners LP (USDP), is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USDG solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USDG, along with its partner Gibson Energy, Inc., is pursuing long-term solutions to transport heavier grades of crude oil produced in Western Canada through its Diluent Recovery Unit adjacent to USDP’s Hardisty rail terminal. USDG is also currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws, including statements with respect to expectations regarding the development and permitting timeline and operational date for USDCF’s new biofuels terminal in National City, Ca, the ultimate size and scope of USDCF’s clean fuels terminal network, the ability of the new National City terminal to comply with California’s goal of reducing greenhouse gas emissions, USDCF’s ability to successfully engage regional economic development groups to support the National City terminal’s personnel needs, and USDG’s ability to develop future additional projects and expansion opportunities. Words and phrases such as “plans,” “expects,” “will,” “would,” “believes,” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to the Partnership are based on management’s expectations, estimates and projections about the Partnership, its interests and the energy industry in general on the date this press release was issued. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include construction and cost-related risks; risks associated with constructing and operating a terminals; changes in general economic conditions; the effects of competition, in particular, by pipelines and other terminalling facilities; the supply of, and demand for, rail terminalling services for biofuels, crude oil and refined products; hazards and operating risks that may not be covered fully by insurance; disruptions due to equipment interruption or failure at the Hardisty terminal or third-party facilities on which our business is dependent; natural disasters, weather-related delays, casualty losses and other matters beyond our control; and changes in laws or regulations to which we are subject, including compliance with environmental and operational safety regulations, that may increase our costs. USDG and USDCF are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, except as required by law.
Robert Copher, (316) 305-6949
Senior Vice President, USD Clean Fuels
Investor Relations Contact:
Adam Altsuler, (281) 291-3995
Executive Vice President, Chief Financial Officer