ADM Partnership to Establish New Ethanol Hub in North Carolina
ADM has announced that it will be establishing a new ethanol hub in Selma, North Carolina through a partnership formed with Kinder Morgan Inc. (KMI) and Bailey Feed Mill.
Kinder Morgan will invest in and build the new facilities to be located at the Baily Feed Mill, giving the mill the ability to offload 96 railcar-long trains in a 24 hour period. KMI will also construct a new 2.6 mile long pipeline that will connect the offload system to their tank system in Selma to facilitate the distribution of ethanol to blending terminals in 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. “
ADM and KMI estimate that inter-terminal connections will be operational as soon as the third quarter of 2016, while the remained of the project is expected to be completed by the end of 2016.
Kinder Morgan is the largest energy infrastructure company in North America with approximately 84,000 miles of pipelines and 165 terminals, through which it transports natural gas, gasoline, crude oil, C02, and other products.
Bailey Feed Mill is a family owned company that owns and operates a network of grain elevators in the Central North Carolina area as well as operating bulk handling and liquid transload facilities in Selma, North Carolina.
“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 in an ADM release. “This project will reduce the ethanol delivery carbon footprint through a more efficient use of rail capacity and pipeline transportation.”