A New Chapter for Portland’s Fuel Terminal: Transition to Renewable Energy
A significant change is on the horizon for the Zenith Energy fuel terminal located on the Willamette River in Northwest Portland. A Miami-based private equity firm, I Squared Capital, has officially announced its plans to acquire the facility, marking a new era in its operations.
I Squared Capital, known for its expertise in global infrastructure investments, has signed a contract to purchase the entirety of the Portland terminal. This acquisition aligns with the firm’s extensive portfolio, which spans across various sectors, including natural gas, solar, wind, and fiber-optic networks.
Although the financial specifics of the deal remain undisclosed due to both companies being privately held, the transaction is anticipated to finalize in the upcoming months. I Squared Capital has committed to maintaining the terminal’s current obligations, which include a complete transition from fossil fuels to renewable energy sources such as biodiesel and sustainable aviation fuel by October 2027.
Gautam Bhandari, the global chief investment officer and managing partner at I Squared, expressed optimism about the future of the Portland facility, stating, “We see significant opportunity for the Portland facility. We believe the terminal is uniquely positioned to become one of the West Coast’s leading renewable fuel hubs, supported by strong structural demand for low-carbon fuels and a broad shift toward sustainable transportation solutions.”
The acquisition coincides with Portland’s policy to shift towards renewable fuels, aiming to reduce greenhouse gas emissions and enhance air quality. This policy transition supports the city’s long-term commitment to electrifying transportation, although full implementation may take decades.
Zenith Energy, the current owner of the terminal, recently secured a regulatory victory by obtaining a new air quality permit from Oregon’s Department of Environmental Quality (DEQ). This permit, despite environmental opposition, mandates a full transition to renewable fuels within two years, enabling Zenith to expand its storage capacity for these cleaner fuels.
Michael Loch, a spokesperson for DEQ, emphasized that the air quality permit conditions will remain unchanged regardless of the ownership transition, stating, “The permit applies to the facility and its operations, and any new owner would be responsible for complying with all permit conditions.”
While the transition to new ownership is underway, opposition from environmental groups persists. Nick Caleb, an attorney from the Breach Collective, a climate justice advocacy organization, voiced continued resistance, saying, “No matter who owns this facility, Portlanders will continue to fight the expansion of dangerous liquid fuel storage on this site.”
Further scrutiny surrounds Zenith with ongoing investigations by Portland city officials into potential violations of franchise agreements related to unreported infrastructure changes. Environmental groups have also contested the city’s land-use approval, with the Oregon Court of Appeals recently remanding the case for further review.
Original Story at www.oregonlive.com