Magellan Midstream opens new biodiesel blending plant in Iowa

In Iowa, Magellan Midstream Partners opened its new biodiesel blending plant at Clear Lake, IA.

The new facility will blend B2, B5, B10 and B20, and includes a 84,000-gallon tank. Magellan’s facility for rack blending, as opposed to the splash blending technique, will provide better fuel mixing in cold weather, accuracy, and one-stop biodiesel loading.

Magellan is also constructing a 145,000-barrels of biodiesel storage facility at its New Haven, Connecticut terminal, and later this year will test transportation of a biodiesel blend via pipeline from Houston to Dallas.

Magellan is potentially one of the partners that the state of Nebraska is in discussions with over a new ethanol pipeline. Magellan owns an 8,500-mile oil pipeline system that traverses from the Gulf Coast to the Midwest.

An official at the Nebraska Ethanol Office recently confirmed that plans were under discussion by several private firms to develop an ethanol pipeline from the Midwest to fuel markets such as Chicago and California. Kinder Morgan Energy, Colonial Pipeline, NuStar Energy as well as Magellan have been mentioned as potential partners.
Costs are estimated to cost $1 million per mile of pipeline.

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