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KMP’s Technological Breakthrough – Analyst Blog

Zacks Market Commentaries (July 2nd, 2009) Writes:
Kinder Morgan Energy Partners, L.P. (KMP) -- the largest independent owner and operator of petroleum product pipelines in the U.S. -- completed its first commercial shipment of bio-diesel through its Plantation Pipeline Company. The process, a technological breakthrough in transporting bio-diesel through pipelines, carried the fuel to various marketing terminals across Georgia and Virginia.Until now, shipment of bio-diesel has been limited to trucks and trains due to several problems in passing bio-diesel through pipelines. Bio-diesel tends to contaminate other fuels, particularly jet fuels, flowing through the same pipeline. Kinder Morgan's breakthrough was to identify a proprietary additive that prevents this contamination. The injection of this additive -- B99 -- has enabled the pipeline transportation.We believe that the Plantation Pipeline project should go a long way toward meeting demand for bio-diesel across the Southeast. Moreover, the ability to blend and transport bio-diesel through ...

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