Sector News

ADM announces agreement to develop new ethanol hub

December 23, 2015
Consumer Packaged Goods

Archer Daniels Midland Company (ADM) announced on Dec. 21 an agreement with Kinder Morgan, Inc. (KMI) and Bailey Feed Mill to construct a new unit train rail facility and ethanol offloading system in Selma, North Carolina, U.S.

KMI will invest in and construct the new facilities, which will be located at the Bailey Feed Mill and will have the ability to offload up to 96 railcar-long unit trains in a 24-hour period. KMI will also build a new pipeline, approximately 2.6 miles in length, to connect the unit train offload system to their vast tank farm in Selma, allowing ethanol to be distributed to blending terminals in Selma and the surrounding markets.

“This project will help us improve the efficiency of our ethanol delivery in this market with added unload capacity, quick-turn time on railcars and a pipeline connection to tankage,” said Craig Willis, president of ethanol for ADM. “And by working with KMI and Bailey Feed Mill on this project, we will achieve the benefits in a cost- and capital-efficient manner. ADM has been a long-time supplier in this market, and we are excited to work with KMI and Bailey Feed Mill to bring a more flexible, reliable and efficient solution to customers in the Selma area.”

ADM and KMI anticipate having inter-terminal connections in service as early as the third quarter of 2016, with the remainder of the project expected to be complete by the end of 2016.

“We are pleased to work with ADM and Bailey Feed Mill on this transportation solution for ethanol deliveries,” said David Halphen, vice-president of business development for KMI’s Products Pipelines. “This project will reduce the ethanol delivery carbon footprint through a more efficient use of rail capacity and pipeline transportation.”

KMI is an energy infrastructure company in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 165 terminals.

Bailey Feed Mill owns and operates a bulk handling and liquid transload facility in Selma, North Carolina as well as a network of grain elevators in the Central North Carolina area.

Source: World Grain

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