Magellan opens Colorado biodiesel blending at Aurora terminal

January 17, 2008

BY Susanne Retka Schill

Web exclusive posted Jan. 21, 2008, at 2:42 p.m. CST

Pipeline company Magellan Midstream Partners LP officially opened a new biodiesel blending and 84,000-gallon storage facility Jan. 18 at its petroleum terminal in Aurora, Colo.

"We are celebrating the opening of our 10th biodiesel distribution system inside one of our petroleum distribution terminals," said Don Wellendorf, Magellan chief executive officer. "We view renewable fuel distribution as a growth opportunity for our company. Our investment in biodiesel blending infrastructure at our Aurora facility is underpinned by our customer CHS [Inc.] and the renewable fuel policies passed by Congress." Wellendorf said CHS underwrote the biodiesel blending infrastructure that will allow transport drivers to select a B2, B5, B10 or B20 blend.

This the fourth biodiesel blending system investment by CHS, said Drew Combs, vice president of commercial supply. CHS will be the exclusive marketer of biodiesel from this terminal, he added.

The National Biodiesel Board lauded Magellan for making biodiesel blends more available in the region. The NBB reported current biodiesel users in Colorado include Jefferson County Public School, the city of Lakewood, New Belgium Brewery Co. in Ft. Collins, Safeway Inc. and Aspen ski resorts. The organization said the increased availability could lead to more public pumps. "We applaud Magellan for taking this step to include biodiesel storage and blending within this terminal," said Joe Jobe, NBB CEO. "Developing blending infrastructure at the terminal level is critical to integrating biodiesel in the existing U.S. liquid fuel distribution system, which will greatly benefit our national energy security."

Magellan owns and operates the nation's longest pipeline for refined petroleum. The Tulsa, Okla.-based company is constructing 145,000 barrels of biodiesel storage at its terminal in New Haven, Conn., and is planning to transport a low-level biodiesel blend in its pipeline from Houston to Dallas early this year.

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