Adapting terminal infrastructure to support biofuels storage

Infrastructure Services – Energy Transition

Repurposing of fuel oil tanks to biofuels use

A mineral fuels, vegetable oils and chemicals terminal operator in Europe and their oil major customer

What is the best use of the client terminal asset footprint, given the energy transition, to allow diversification in the operating model?

3 months

Provided energy transition scenarios for the client’s core products and markets, with a specific focus on biofuels demand
Matched the capabilities against the technical, operational and storage capacity required in the context of the expected throughput of bio product types
Built a customised operational design for each storage tank and connected infrastructure to allow quantitative decisions on what is fit for purpose
Identified mitigation options for declining core revenues through converting storage to products such as FAME and HVO, along with the required line segregations and heating
Built on existing operating standards, assessing the fit for diversification with the client’s business and location
Created a ‘tie-in’ program for the existing infrastructure already in bio grades service with the new assets
Supported our client in commercial negotiations regarding the converted capacity

Confirmed that client’s customer biofuels trading volumes are robust, with challenges around diesel use-case which required specific focus on capacity
Technical and commercial meetings were held with commercial, operations and projects teams
Identified more efficient and economical ways to store and handle biofuels with the existing assets available
Managed the interface between storage provider and their oil major customer to ensure that the Statement of Requirements was properly defined and understood
Assisted the client’s commercial management team in gaining investment approvals for the conversion projects from their board