Shell Trading (US) Co. has finalized a long-term agreement for the purchase of renewable diesel from NEXT Renewable Fuels Inc.’s planned facility in Port Westward, near Clatskanie, Ore.
Representing an investment of more than $1 billion, NEXT’s Oregon renewable diesel facility will have an expected annual processing capacity of 13.3 million barrels (600 million gallons). Scheduled to open in 2021, NEXT will supply Shell and other partners with its alternative liquid fuels, satisfying end-user demand while also meeting both federal and state environmental compliance and fuel security requirements.
NEXT renewable diesel is a second-generation advanced biofuel made from 100% renewable feedstocks, including used cooking oils, animal tallows, and selected virgin seed and vegetable oils.
“As a drop-in fuel, NEXT’s renewable diesel is a perfect fit with our existing fuels business and will allow us to integrate this advanced fuel seamlessly into our supply chain,” says Kate Andresen, Shell Trading’s biodiesel trading manager for the Americas.
NEXT says it selected the Port Westward site due to its strategic location at a deep-water site on the Columbia River, access to global feedstock supplies, and close transport to North American West Coast markets.