New terminal to serve San Diego area with biodiesel, renewable diesel and SAF

A new USD Clean Fuels biofuels terminal in Southern California will be served by BNSF. (Photo: BNSF Railway)

USD Clean Fuels LLC announced Jan. 17 its intention to build a new biofuels terminal in National City, California, that will have the capability to transload renewable diesel, biodiesel, ethanol and sustainable aviation fuel (SAF).

The terminal will be served by the BNSF Railway and will provide efficient transportation of clean fuels to the San Diego area from the Midwest and U.S. Gulf Coast.

Pending receipt of all local and state permits, the terminal is expected to be operational by early 2024.

The terminal development is supported by two investment-grade rated parties that signed long-term terminal-service agreements.

The agreements provide for the inbound shipment of renewable diesel, biodiesel, ethanol and SAF on rail, self-switching of the rail rack and four truck-loading spots that are equipped with inline-injection capabilities to provide quality finished products to customers.

“We are excited to announce this terminal development for USD Clean Fuels,” said Bob Copher, senior vice president of USD Clean Fuels. “It is the second terminal of a growing network of clean-fuels terminals that we anticipate will ultimately include California, Oregon, Washington, Canada and the Texas Gulf Coast based on strong customer and railroad interest. These terminals will provide needed infrastructure that will make the downstream logistics of biofuel production and feedstocks more efficient.”

With mounting political and public pressure to reduce reliance on fossil fuels, reduce and reuse waste streams, and cut greenhouse-gas (GHG) emissions, clean fuels are becoming popular alternatives that comply with California’s goal of reducing GHG emissions throughout the state by 2030.

In addition to supporting climate-change mitigation efforts through the increased distribution of cleaner, renewable energy, the National City terminal will serve several underserved areas in San Diego County using local and regional employees and resources.

USD Clean Fuels is an entity formed by USD Group LLC to focus on providing production and logistics solutions to the growing market for clean-energy transportation fuels.