December 23, 2015 [OPIS] - Archer Daniels Midland (ADM) reached an agreement on plans to construct a new unit train rail facility and ethanol offloading system in Selma, N.C., with Kinder Morgan Inc. and Bailey Feed Mill, the company announced today.
According to ADM, the new facilities and system will be located at the Bailey Feed Mill, with the ability to offload up to 96 railcar-long unit trains in a 24-hour period.
Additionally, Kinder Morgan will invest in and help construct the new facilities, with plans to build a new pipeline roughly 2.6 miles long connecting the train offloading facility to the tank farm in Selma to allow for ethanol distribution at local and surrounding blending terminal 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.
The inter-terminal connections are expected by both ADM and Kinder Morgan to be operational as soon as the third-quarter of 2016. The full project is projected to be completed 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 Kinder Morgan’s Products Pipelines. “This project will reduce the ethanol delivery carbon footprint through a more efficient use of rail capacity and pipeline transportation.”
ADM currently has six U.S. ethanol plants on line and operates a handful of biodiesel plants in Germany; a facility in Rondonopolis, Mato Grosso, in Brazil; as well as plants in Velva, N.D.; Mexico, Mo.; Deerfield, Mo.; and a plant in Lloydminster, Alberta.
