Vopak repurposes 22 tanks for renewable diesel, SAF at Los Angeles terminal

Vopak's terminal in the Port of Los Angeles, California (Photo: Vopak)

Vopak announced Sept. 27 the repurposing of 22 tanks at its Los Angeles, California, terminal.

With a combined capacity of 39 million gallons, Vopak said this is “a clear example of how storage capacity used for traditional products can be repurposed to store products of the future like sustainable aviation fuel (SAF) and renewable diesel.”

Vopak Los Angeles has a long-term agreement for this storage infrastructure with Neste, a leading global producer of SAF, renewable diesel, and feedstock solutions for various renewable polymers and chemicals-industry uses.

The Vopak Los Angeles Terminal is strategically located in the Port of Los Angeles and is well-connected for logistics via various modes of transportation, including vessels, barges, trucks, pipeline and trains.

The storage capacity at the Vopak terminal significantly increases the availability and accessibility of Neste’s renewable fuels at critical hubs in the Los Angeles area, such as SAF for airlines at the Los Angeles International Airport (LAX) and surrounding airports, and renewable diesel for fueling stations serving road transportation.

“Neste is fully committed to supporting the energy transition in the U.S. as well as globally via working closely together with partners to increase the availability of our renewable fuels,” said Annika Tibbe, acting president for Neste US. “Our cooperation with Vopak shows how repurposing existing fuel-distribution infrastructure can accelerate the much-needed transition to renewable energy. California has been at the forefront of adopting and endorsing climate-friendly policies and solutions. We are glad to enable more cities, businesses and individual travelers in the state to take advantage of Neste’s renewable solutions to reduce their emissions and help fight against climate change.”

Gene Seroka, executive director of the Port of Los Angeles, added, “The Port of Los Angeles congratulates Vopak for its work here at the port converting nearly two dozen of its tanks to sustainable aviation fuel and renewable low-carbon fuel sources. The Port of Los Angeles supports the use of lower carbon-intense fuel options in the local transportation industry as we progress towards our own zero-emission goals beginning in 2030. We appreciate Vopak’s efforts and partnership in this transition.”

Maria Ciliberti, Vopak president for the U.S. and Canada, said, “We are proud to serve Neste. Repurposing Vopak’s assets from oil and traditional fossil-fuel products to low-carbon energy solutions is right on target with our strategy. We are happy that our services and infrastructure have been selected and are committed to be a part of the Los Angeles energy transition.”

Vopak has invested approximately 30 million euros (USD$31.65 million) into repurposing existing conventional oil-storage capacity over the last months into biofuels storage.

As previously announced, Vopak will accelerate its portfolio investments towards new energies and sustainable feedstocks by allocating 1 billion euros (USD$1.05 billion) in growth capital to these activities by 2030.

This is half of Vopak’s growth-capital allocation until 2030.

Vopak’s focus is on infrastructure solutions for low-carbon and renewable hydrogen, ammonia, CO2, long-duration energy storage and sustainable feedstocks.

This strategy will help shape the future of Vopak, but also contribute positively to the transition within key industrial clusters and the shaping of energy hubs of the future.