New Generation of Asphalt has Dramatic Environmental and Paving Quality Benefits

When NuStar Energy L.P. (NYSE: NS) spun off as an independent company in April 2007, the company’s stated goal was to expand beyond its pipeline and terminal operations to become a leader in the asphalt industry. To meet that goal, NuStar first developed an asphalt marketing and trading group, and then purchased two asphalt refineries in March 2008 to become the third-largest asphalt producer in the nation. Now, the company is leading the way in the implementation of new technology to blend and supply the next generation of asphalt known as warm-mix asphalt.

NuStar has begun installing systems at its asphalt terminals that will allow it to blend and supply warm-mix asphalt to its customers. Traditional hot-mix asphalt must be heated between 300 and 350 degrees as it is mixed with rock material at a hot-mix asphalt plant and then used to build or repair roads. The warm-mix technology NuStar is investing in and implementing decreases that temperature by 50 to 100 degrees. There are many benefits to this temperature decrease, including reduced emissions, reduced fuel usage to heat the asphalt, better pavement quality, and a longer paving season as you can lay warm-mix asphalt in cooler weather.

NuStar’s system will add and blend a waterless asphalt binder into conventional asphalt at its terminals, and the binder changes the properties of the asphalt to make it usable at the lower temperatures. The binder, named Evotherm 3G, is marketed by South Carolina-based MeadWestvaco. Customers will not have to make any investments in additional equipment to use the product. Other existing warm-mix technologies require costly equipment to be installed at the asphalt production facility or hot-mix plant. And, the material can be applied to roads using standard paving equipment.

“We’re excited to offer this new product line because it is a ‘win-win’ situation in every way,” said Curt Anastasio, NuStar President & CEO. “It’s a win for the environment in terms of emission reductions. It’s also a win for our customers because they will benefit from fuel savings and they will have access to a product that is easier to work with as they build and repair roads. Plus, they will be able to take advantage of this product with absolutely no capital investment at their facilities.