Sustainability an overriding theme for new CSX-served fuel feedstock facility
6/26/2023
By Jeff Stagl, Managing Editor
For CSX, exploring alternate ways to conduct business can help convert more truck traffic to its rail lines. That approach is why renewable aviation fuel feedstock producer Oleo-X is now a customer.
In May, Oleo-X opened a renewable diesel/sustainable aviation fuel feedstock pretreatment facility at a CSX-served site in Pascagoula, Mississippi. The facility is designed to produce up to 300 million gallons of formulated high-quality feedstocks annually for producers of renewable diesel and sustainable fuel in the aviation industry.
Oleo-X chose a brownfield site — or an unused existing facility — instead of a yet-to-be-developed greenfield site for the new plant to both meet its sustainability objectives and hasten project development. In late 2020, The Chemours Co. closed its First Chemical plant on the site, which produced chemicals for tires, dyes and building materials.
“Oleo-X could upgrade an existing facility more quickly. Speed to market is key for them,” says CSX Director of Business Development Rashard Howard.
The Class I is studying biofuels to reduce its diesel dependence and aims to use 20% of alternative fuel sources in the future. CSXOleo-X purchased the former Chemours plant in June 2022 and then spent 11 months expanding and renovating the facility. The company aims to modernize and optimize the way low-carbon fuels are manufactured.
CSX upgraded track at the plant to suit Oleo-X's needs, says Howard. The project is a prime example of how the Class I strives to employ various methods to pursue growth opportunities, he says.
“We are marketing in different ways, such as on social media and by word of mouth,” says Howard.
Now, CSX moves outbound aviation fuel feedstock from the Pascagoula plants that’s destined for various domestic markets and inbound animal fat. Oleo-X processes low-carbon and inedible oils — including poultry fat — to create the feedstock.
Although the Pascagoula plant is solely served by CSX, the Class I works with Mississippi Export Railroad to move some outbound traffic heading west and with western carriers on other westbound traffic, says Howard.
Sustainability is vital to Oleo-X, which aims to help meet the growing demand for sustainable energy by providing renewable diesel and sustainable aviation fuel. The company’s mission is to produce renewable aviation fuel feedstock without blending in unsustainable food industry oils.
Likewise, sustainability is highly important to CSX, which constantly seeks more ways to reduce its carbon footprint, says Howard.
“CSX is the most fuel-efficient Class I. We use less than 1 gallon of fuel to move 1,000 gross tons of freight,” he says.
The Class I offers shippers a carbon calculator to help determine how they can move their freight in the most sustainable way possible. In addition, the railroad is studying the use of biofuels to reduce its diesel usage.
“Our goal is to get to 20% of alternative fuel sources,” says Howard.