Vertex: Renewable diesel unit operates at approximately 50% in Q4
January 31, 2024
BY Erin Voegele
Vertex Energy Inc. on Jan. 23 released an operational update, reporting that the renewable diesel production unit at its refinery in Mobile, Alabama, produced approximately 3,900 barrels per day during the fourth quarter of 2023. The company previously forecasted that production would be in the range of 4,000 to 6,000 barrels per day during the three-month period.
According to Vertex, the yield on renewable throughput volumes was approximately 96% during the fourth quarter, slightly below the previously anticipated range of 97% to 98%. Capacity utilization for the period was 48% to 50%, down from the previous forecast of 50% to 75%.
Vertex also reported that its feedstock optimization strategy is progressing as expected. The company said it expected to receive California Low Carbon Fuel Standard credits in the fourth quarter of 2023 for its renewable diesel production volumes produced in both the third and fourth quarters of last year. The initial LCFS credits reflect a temporary carbon intensity (CI) score and amounted to $9.5 million for the period. Upon receiving a provisional CI score, expected sometime in the first half of 2024, Vertex said it expects the per-barrel LCFS credits to improve materially over temporary CI values.
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Vertex in mid-2021 announced an agreement to acquire the Mobile refinery and convert a portion of it to renewable diesel production. The newly completed renewable diesel unit began operations in Spring 2023. In June 2023, Vertex announced it had completed the first series of commercial sales transactions of renewable diesel. The following month, the company announced the renewable diesel unit had achieved its phase 1 capacity target of 8,000 barrels per day.
A full copy of the Jan. 23 operational update is available on the Vertex website.
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