Wednesday, June 17, 2009

Biodiesel supplier opens hub in Midwest US



Innovation Fuels, the New York based renewable energy company that manufactures, markets, and distributes second-generation biodiesel to customers around the world has announced it has begun selling biodiesel to customers from its Midwestern renewable fuels hub / Port of Milwaukee terminal located on Lake Michigan.

The 312,000 barrel (45,000 tonnes) capacity terminal located on 10 acres is the first in the country that is totally dedicated for the sale and distribution of renewable fuels.

Originally built as Shell Oil’s Milwaukee headquarters in the 1950’s and acquired from NuStar Energy L.P. (NYSE:NS), the Innovation Fuels terminal includes a 20,000 square foot warehouse, executive offices and a garage.

John Fox, CEO for Innovation Fuels commented, “The commencement of selling biodiesel via our Milwaukee terminal will significantly lower the cost of our biodiesel to customers in the Great Lakes due to lower transportation charges.”

“We also bring along a mindset of quality at a reasonable price, which is backed by our BQ9000 credentials as a marketer and producer in the Northeast United States,” added Fox. “It is highly advantageous for us to be marketing Milwaukee based biodiesel to customers in Milwaukee and greater Wisconsin as well as to Chicago and the entire Midwestern region.”

“This signifies only the beginning of using this facility as an actual renewable fuels hub in the Midwest,” remarked Richard “Hardy” Sawall, Innovation Fuels SVP for Midwest Operations. “We expect to announce plans for additional capabilities including biodiesel blending very shortly.”

Innovation Fuels’ Milwaukee terminal features existing truck and rail loading infrastructure, with excellent highway access and is served by two Class I railways, the Union Pacific Railroad and the Canadian Pacific Railroad. In addition, the Port of Milwaukee has international shipping access via the St. Lawrence Seaway and can receive river barge cargo via the Mississippi. The facility also has an idled connection to the Westshore petroleum pipeline, which could be used to bring in diesel and gasoline to the terminal for blending with renewable fuels, such as biodiesel and ethanol.

Garland Middendorf, President of Wolf Lake Terminals, Innovation Fuels’ operations partner for the Milwaukee terminal commented, “This is indeed a momentous occasion as we begin to promote and distribute renewable fuels in Milwaukee. Our partnership with Innovation Fuels signifies our commitment to the growth of sustainable energy and to become an industry leader both in the Midwest and across the U.S.”

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