Kinder Morgan Energy Partners LP is moving B2 through its 115-mile Oregon Pipeline that runs from Portland to Eugene, as of late September, following successful test runs. Kinder Morgan's Oregon line is one of only a few pipelines in the U.S. able to regularly transport blended biodiesel, according to the company, as this pipeline does not transport jet fuel, eliminating the potential for "trailback" of product into subsequent jet fuel batches.

"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 Tom Bannigan, KMP Products Pipeline president. "We are transporting B2 in a way that's operationally efficient, quality controlled and cost effective."

The first commercial batch of approximately 100,000 barrels of B2 was created using a new blending system to inject B99 into ultra-low sulfur diesel at the company's Willbridge terminal in Portland. Other area terminals also are expected to deliver B2 to the Kinder Morgan pipeline.

Other improvements to Kinder Morgan's Pacific Northwest facilities include biodiesel blending capabilities at the truck-loading rack at the Willbridge terminal and for barge loading at the Linnton terminal in Portland. In the company's Southeast operations, Plantation Pipe Line Company (operated by Kinder Morgan), became the first pipeline in the country to transport biodiesel for commercial purposes in June.