On Thursday, midstream company Zenith Energy, which operates a network of independent liquid storage terminals and handles over 32 million barrels of renewable and conventional fuels and chemicals in North America, Europe and Latin America, announced a near three-fold increase in the amount of low-carbon, renewable diesel being processed and stored at its flagship Portland, Oregon storage facility.
The company says the increase is due to “a new, long-term commitment with an existing customer who is committed to a low-carbon economy and providing renewable fuels to the greater Portland area.”
Zenith says the commitment bolsters its own vision of the Portland Terminal as a premier logistical asset in the handling of renewable fuels, which will assist the city in meeting its own goals for reduction in the use of fossil fuels in support of the Oregon Clean Fuels Program.
“We acquired this Terminal to capitalize on the growing demand for renewable fuels in Oregon and throughout the western United States. This growth is being driven by aggressive and necessary carbon reduction goals being set by municipalities, states and the private sector,” said Zenith CEO Jeff Armstrong. “The Portland Terminal can play a significant role in helping Oregon meet its carbon reduction goals by making clean, renewable fuels readily available for public and private sector fleet owners.”
Zenith took control of the Terminal in 2017, and promptly terminated the crude oil export contract held by the prior operator, shifting its focus to meeting the West Coast’s growing need for renewable fuels. Following these newest commitments, Zenith estimates that 17 percent of the fuels stored at the Portland Terminal will be renewable by the end of 2021 and predicts that renewable fuels will constitute nearly half the Portland Terminal’s capacity by 2026. Zenith is in the process of acquiring permits for the Portland Terminal to build dedicated renewable fuel infrastructure to meet anticipated market demand.
“Since transportation fuels are the world’s largest source of greenhouse gas emissions, the transition of the Portland Terminal’s capacity to an increased focus on renewable fuels demonstrates the impact Oregon can make by reshaping its existing energy infrastructure,” said Armstrong. “Because renewable diesel works with the transportation industry’s existing distribution infrastructure and engines, Oregon’s network of pipelines, storage tanks, and fueling sites can be repurposed to rapidly scale its availability. This is a major advantage that will enable renewable diesel to replace fossil fuels faster and more affordably.”
Zenith notes that renewable fuels have been shown to result in an up to 80 percent reduction in greenhouse gas emissions as compared to fossil fuels. Over the past decade, the state of California’s use of renewable diesel has prevented more than 30 million tons of CO2 from entering the atmosphere.
In addition to increasing its capacity on the U.S. West Coast and in the Pacific Northwest, Zenith has also recently boosted its presence in the country’s midsection. In February, Zenith acquired the assets of Bulk Terminal Storage (BTS), comprised of three storage terminals with a combined storage capacity of 560,000 barrels in Ohio, Pennsylvania and West Virginia, strengthening its infrastructure presence in the Midwest, Marcellus and Utica Shale regions and supporting clients with conventional and alternative fuel storage needs.
