December 22, 2020
BY Erin Krueger
CVR Energy Inc. on Dec. 21 announced it has received approval from its board of directors to move forward with a conversion project that will allow its refinery in Wynnewood, Oklahoma, to produce renewable diesel.
The project to convert the facility’s hydrocracker unit to renewable diesel production is expected to be complete in mid-2021 and will allow the refinery to produce nearly 100 MMgy of renewable diesel, along with 6 MMgy of renewable naphtha.
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“Detailed engineering design work for the project is underway,” said Dave Lamp, CEO of CVR Energy. “We also have ordered long lead-time equipment and began construction work, as authorized by the Oklahoma Department of Environmental Quality’s permitting rules. We continue to expect the unit to be in service by July 1, 2021.”
A statement released by the CVR Energy notes the board’s approval pertains specifically to phase one of the company’s renewable diesel strategy. During a third quarter earnings call held in November, Lamp said the company is evaluating a multi-phase approach to its renewable diesel strategy. Phase one would be the conversion of the existing hydrocracker at the Wynnewood refinery. In phase two, the CVR would install a pretreatment unit at the Wynnewood refinery that would allow the renewable diesel unit to process lower-carbon feedstocks, such as corn oil, animal fats and used cooking oil. In phase three, the company would pursue a similar renewable diesel project at its Coffeyville refinery.
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CVR Energy has stated it is pursuing renewable diesel production as a way to reduce its annual renewable identification number (RIN) exposure under the Renewable Fuel Standard.
A full copy of the company’s Dec. 21 announcement is available on its website.
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