In anticipation of increased demand for low-carbon, cleaner fuels, Contanda plans to expand its facility at the Port of Grays Harbor to store a portfolio of cleaner fuels including biodiesel, renewable diesel and ultra-low sulfur diesel, according to a statement released by the company Tuesday.
Since 2009, Contanda has operated a facility to handle bulk liquid storage and shipping at the Port of Grays Harbor. The existing facility handles methanol for industrial uses. In 2013, the company sought permits to expand the facility for other liquids, including crude oil. In the face of opposition from crude oil opponents, the company has dropped its plans to store oil and amended its permit to include other materials.
“We have been doing a lot of preliminary legwork with the Department of Ecology, the Port, the chamber,” said G.R. “Jerry” Cardillo, CEO of Contanda. “We think this would really benefit the city.”
The revised application for eight new storage tanks capable of storing 1.1 million barrels of liquid is in response to customer demand and the strong future across the West Coast for biofuels and commodities such as ultra-low-sulfur diesel as low carbon fuel standards and carbon regulations continue to move forward, according to the statement.
“We heard the community, met with our customers and developed a revised strategy involving the storage of clean products,” said Cardillo. “With the highest commitment to safety, our neighbors and the environment, we look forward to this potential expansion which will bring jobs, tax revenue and other economic benefits to the community for the long term.”
Cardillo noted the biodiesel project would have less impact on the traffic in east Aberdeen than their original crude oil expansion plan. “We’re talking 200 (train) calls a year versus 230 and a lot less gallons,” he said. The company is in talks with the railroad and still guaging the potential impacts of the expansion on traffic in the region. “We’re trying to shift the commodity base to reduce traffic” in the region, and Cardillo said Contanda is prepared to work with the city of Aberdeen, the railroad and others to address traffic issues.
Grays Harbor’s location and infrastructure are attractive to Contanda and potential customers whose products originate in the Northwest and can travel by rail to the port to be transferred to deep-water marine vessels, according to the statement. The project would create as many as 100 jobs during construction and up to 20 permanent positions when operational, the company says.
“The combination of deep-water shipping terminals, rail service, experienced labor and available land for development of facilities is what first attracted Contanda to the area in 2009,” Cardillo said. “These attributes continue to provide an attractive development option for us as we look to expand our West Coast terminal presence.”
The company is working closely with the City of Hoquiam and the Washington Department of Ecology on a streamlined permitting process, but does not yet have a timeline for the revised project. The company has not yet officially rescinded its initial permit for the crude oil expansion project, but is in the process of amending the existing environmental impact statement to reflect the shift away from crude oil to renewable fuels. At this time, the company is still in discussions as to what specific types of liquids would be stored at and shipped from the facility.
Headquartered in Houston, Tex., Contanda is a provider of storage and logistics services to owners of bulk products in North America. The company has approximately 7.25 million barrels of storage capacity across 16 terminals in North America. The business is focused on growth in the petrochemical and hydrocarbon markets while maintaining a leading market position in the petroleum, chemical, agricultural and steel sectors.
