Companies Plan Ethanol Hub in Selma, NC

OAKHURST, N.J. (DTN) -- Archer Daniels Midland Company announced in a news release an agreement with Kinder Morgan, Inc. and Bailey Feed Mill to construct a new unit train rail facility and ethanol offloading system in Selma, North Carolina.

KMI will invest in and construct the new facilities that will be located at the Bailey Feed Mill and have the ability to offload up to 96 railcar-long unit trains in a 24-hour period. KMI will also build a new pipeline approximately 2.6 miles in length to connect the unit train offload system to their vast tank farm in Selma, allowing ethanol to be distributed to blending terminals in Selma and the surrounding markets.

ADM and KMI anticipate having inter-terminal connections in service as early as the third quarter 2016 with the remainder of the project expected to be complete by the end of 2016.

"This project will help us improve the efficiency of our ethanol delivery in this market with added unload capacity, quick-turn time on railcars and a pipeline connection to tankage," said Craig Williams, president of ethanol for ADM. "And by working with KMI and Bailey Feed Mill on this project, we will achieve the benefits in a cost-and capital-efficient manner. ADM has been a long-time supplier in this market, and we are excited to work with KMI and Bailey Feed Mill to bring a more flexible, reliable and efficient solution to customers in the Selma area."

David Halpern, vice president of business development for KMI's Products Pipelines, expressed pleasure in working with ADM and Bailey Feed Mill "on this transportation solution for ethanol deliveries. This project will reduce the ethanol delivery carbon footprint through a more efficient use of rail capacity and pipeline transportation."