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  1. Portside

Fueling environmental change

May 31, 2022
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How the Port is using renewable diesel to make a cleaner community  

Imagine a fuel that could be made from just about any biological material: cooking oil, animal fats, even invasive weeds. A fuel that would drastically cut harmful pollution. A fuel that’s just as efficient as petroleum-based fuels.   

It exists: It’s called renewable diesel, or RD. And the Port of Portland is using it to fuel many of its operations at the Port and PDX — benefitting climate, air quality and the health of employees and surrounding communities along the way.  

Supporting environmental justice and community

Diesel particulate matter is one of the most harmful air pollutants. Due to their proximity to construction sites, industrial facilities, rail lines, transportation and freight hubs and corridors, marginalized neighborhoods in North Portland are disproportionately exposed to diesel pollution.

The Port of Portland has long-established emissions reductions goals and projects to minimize the impact on the people who work at, travel through and live near Port facilities. Applying an equity lens to the Port’s work increased the urgency to find comprehensive solutions to tackle the problem, and further solidified the Port’s priorities around environmental justice and air quality.

Renewable diesel is a near-term, high impact strategy that reduces diesel particulate matter by up to 30 percent and lifecycle greenhouse gas emissions by up to 80 percent.  

“Our health is obviously impacted by air quality,” said Andrea Caudill, Senior Air Quality and Energy Specialist at the Port. “The air toxins in our region affect workers at PDX, marine and the surrounding communities who are often marginalized. By implementing a non-petroleum-based fuel, we are no longer introducing new fossil fuels into our atmosphere through extraction, refining, and emissions.”

What is renewable diesel, anyway?

Although RD is sometimes confused with biodiesel, the two fuels are not the same. They’re both produced from agricultural waste products, like used cooking oil and grease. But RD and biodiesel have two different production processes that create two different types of products: While biodiesel is commonly blended with petroleum diesel at a 5% to 20% ratio, RD is almost chemically identical to petroleum-based diesel.

Fuel the fire

In 1995, PDX began running its buses on compressed natural gas, which still produces emissions but is cleaner-burning than petroleum-based diesel. In July 2021, PDX began procuring renewable natural gas (RNG) for the bus fleet. RNG is biogas captured from organic waste breakdown processes such as landfills, wastewater treatment and agricultural processes.

In February 2022, the Port expanded RD use to its Marine business and is now using it in every piece of container-handling equipment at Terminal 6 that runs on diesel fuel. It’s an average of about 300 gallons of RD a day.

While the cost of RD is slightly higher than petroleum-based diesel, the big savings are in what’s not produced.

“Using RD reduces lifecycle greenhouse gas emissions up to 80 percent,” said Caudill. “It’s also odorless. The scent of diesel is so intense that if even a drop gets on your clothing, you’ll smell like diesel for the rest of the day. But with RD, you won’t smell a thing.”

Because RD burns cleaner than petroleum-based diesel, it reduces equipment maintenance and operating costs. For example, fuel filters, which trap impurities and particulates in fuel, don’t need to be changed or cleaned as often.

Todd Staple, Senior Manager of Marine Maintenance at the Port, agreed. “The transition to R99 is a win-win change for Marine. We will see a significant improvement in carbon reduction at a minimal cost increase to the business line. In addition, we should experience lower maintenance costs overall because of a cleaner-burning fuel and cleaner-burning engine using R99 from previous petroleum-based fuels.”

Leading by example

The Port isn’t the only local organization using RD to fuel up its business. TriMet uses RD for its buses, and the City of Portland and Metro use it as well. Slightly farther afield, Eugene Water and Electric has used RD since 2015.

But one of the crucial ways the Port is leading in this area is not only by example but by its partnerships: By supporting the use of RD, the Port creates demand.

“We have many business partners who also have the need for this type of fuel,” Caudill said. So, we want to help those in the private sector make their way toward using RD.”

Skanska USA and the Port have been in conversation about how Skanska has used RD at the Port’s Terminal Core Redevelopment (TCORE) project, said Joe Schneider, Senior Vice President and Account Manager at Skanska USA. “TCORE started using RD in the summer of 2021, and continues to use RD. The transition has gone well, and Skanska is looking for other large-scale projects to potentially use RD.” 

The future is right now

Essentially, RD serves as a bridge strategy. Although many Port vehicles and equipment currently using diesel will convert to electric over time, it won’t happen overnight.

Caudill said, “RD is a strategy we are acting on today to make an impact while also doing the complicated work to plan for future strategies. We are trying very hard to move as quickly as we can: We have a narrow window of time to mitigate the effects of climate change."

Timeline

A new purpose for Terminal 2

2017-2019 aerial of terminal 2

With an abundance of breakbulk cargo terminals along the lower Columbia River between the ocean and Portland, the Port began to consider whether Terminal 2, located on the Willamette River, should continue serving as a marine terminal. Multiple studies confirmed it: T2 was no longer needed for breakbulk cargo.

Instead, the terminal would provide the greatest economic benefit – meaning it creates quality jobs for the people who live and work in our region, and opportunities for rural and urban businesses – if redeveloped as an industrial park or manufacturing hub, especially given the short supply of industrial land in the Portland area.

Finding possibility in mass timber

2020

Wildfires devastated rural Oregon, wiping out thousands of homes and increasing the region’s urgent need for more affordable housing – and sparked new collaboration between state and Port employees, who create an informal network to provide housing for fire victims.

Meanwhile, at PDX, we were bringing together partners from across the region to construct a new airport roof made of mass timber. Designed and built in the Pacific Northwest, with materials supplied by 40 Oregon and Washington landowners, mills and fabricators, the new 9-acre airport roof changed the region’s idea of what’s possible. Some of the wood was even harvested to reduce the impact of wildfires.

The PDX roof was just the beginning.

Create a coalition to do something big

2021 Oregon Mass Timber Coalition logo

The next step was to formalize partnerships that had started taking root, leading to the formation of the Oregon Mass Timber Coalition. Our goal was – and is – to create a regional hub for innovation and mass timber industry growth through sustainable design, manufacturing and housing construction.

Coalition members include the Port of Portland, Oregon Department of Forestry, Business Oregon, Oregon Department of Land Conservation and Development, University of Oregon, Oregon State University, and TallWood Design Institute.

EDA funding kick-starts plans for a mass timber modular factory

2021 Still rendering of T2 Mass Timber site concept

Another EDA grant enabled the Oregon Mass Timber Coalition to launch a comprehensive strategy for expanding the mass timber housing market.

Funding targeted coalition projects across the state, from fire and acoustical testing of mass timber products for use in multifamily housing, to wildfire reduction and sustainable, traceable wood harvesting in regional forests, to developing the workforce training needed for new jobs in an emerging industry. It also provided funding for the Port to begin site preparation at Terminal 2.

Transforming a longtime marine terminal this way requires a lot of planning, investment and infrastructure work before construction of new buildings can begin. We started identifying partners to help build and operate a new mass timber and housing manufacturing factory, and working with Mackenzie, a local firm, on high-level master plans to guide ongoing development.

Demonstrating mass timber’s promise for housing

2023 interior example of fully furnished mass timber home

One of our early partners was Hacienda Community Development Corporation, a local nonprofit that built six prototype homes from mass timber at T2. The Mass Casitas pilot project, funded in part by $5 million from the 2023 Oregon Legislature, not only provided homes for families in Madras, Talent, Otis and Portland. It demonstrated that mass timber modular construction can provide a quicker, more efficient and cost-effective way to build housing.

Around the same time, the Port also began leasing space to modomi, a Portland-based company specializing in sustainable modular housing, and modomi began renovating an old warehouse into a modular housing manufacturing facility.

Campus plans take shape

2024 Rendering of UO acoustics lab: modern timber building

Two years of plans started to become reality with multiple anchor tenants announced for the campus.

The Port approved leases with the University of Oregon for a new mass timber acoustics laboratory, along with Zaugg Timber Solutions, which took over the warehouse renovated by modomi to create a temporary mass timber manufacturing facility. With plans for a permanent mass timber modular factory at T2 as well, Zaugg began efforts to build an interim modular manufacturing facility and recruit for its training program in Switzerland.

Throughout all this excitement, we continued working out costs and plans for making sure soil is stable for future construction at the campus, and securing additional federal funding for developing critical infrastructure.

What’s next

2025-2028 man in hardhat and harness working on timber building

When complete, the 39-acre Mass Timber and Housing Innovation Campus at T2 will include manufacturing, research and development, skills training, and incubator space for small and emerging businesses.

In 2025-26, we’ll work on soil stabilization and critical campus-wide infrastructure improvements. We’ll also work with University of Oregon as they undergo design and permitting for their new acoustics lab – expected to begin construction in 2026 and open in 2027 – and finalize plans with Zaugg for a new, permanent mass timber modular factory to open in early 2028. Zaugg will begin producing mass timber modular housing units, industrial and commercial buildings, and prefabricated mass timber building components even sooner, as early as 2026, in their interim facility.

And we’ll continue collaborating with partners to make sure workers are prepared for the new, high-quality jobs in the emerging mass timber industry.

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