Eco-Energy to add Virginia to its ethanol facilities in the East

By Susanne Retka Schill | August 01, 2012

Eco-Energy Holdings Inc. continues to expand its facilities in the East, announcing a partnership with NuStar Terminals Operations Partnership LP to jointing develop and ethanol unit train and storage facility, including outbound truck loading, at NuStar’s Dumfries, Va., facility. Each party will bear their own development and refurbishment costs in the facility that will serve the northern Virginia and Washington, D.C., area.

Expected to open in fall, 2013, the ethanol unit train terminal will have approximately 155,000 barrels (6.5 million gallons) of ethanol storage capacity and will be capable of distributing more than 400,000 barrels (16.8 million gallons) per month. The facility will offer product access 24 hours a day, seven days a week, and will be equipped to receive up to 96 rail car unit trains via CSX Transportation with a 24 to 36 hour turnaround time.

“We are very excited about the joint development of this facility. This is a large and growing market and this project reflects how multiple partners (Eco-Energy, NuStar and CSX) can work together to develop a long-term supply chain solution that benefits biofuel producers and end users. We continue to execute on our terminal strategy and the site will be open for utilization by both producers and end users seeking to effectively distribute biofuels in the region,” said Gwaine Ton, Eco-Energy’s chief financial, chief operating officer.

“This is a great project for the partners, the biofuel producers and the end users,” said Danny Oliver, NuStar’s senior vice president of marketing and business development. “We are excited that we’ll be able to deliver ethanol more quickly and cost-effectively to this growing market.”

Eco-Energy opened an ethanol unit train and storage facility in Denton, N.C., earlier this year, and announced plans to develop another facility to serve the Atlanta, Ga., area of an equal size to the northern Virginia plans just announced.

In addition to its distribution services, Eco-Energy procures ethanol using marketing partnerships with ethanol producers. Earlier in July, the company announced it was extending partnerships with South Dakota producer, Redfield Energy LLC and Western New York Energy, Medina, N.Y.