CVR Energy restructures its renewables business

CVR Energy Inc. on Feb. 1 completed a transaction to break out its renewables business, according to statements made by CEO David Lamp during a fourth quarter earnings call held Feb. 22. Lamp also discussed operations at CVR’s Oklahoma renewable diesel facility.

CVR in 2022 converted a production unit at its Wynnewood refinery in Oklahoma to renewable diesel production. The unit began producing at capacity in October. According to Lamp, CVR completed the first catalyst change at the Wynnewood renewable diesel unit during the fourth quarter, which limited processing to approximately 13 million gallons of vegetable oil feedstocks. Dan Newman, chief financial officer at CVR, said renewables throughput for the first quarter of 2023 is expected to be approximately 20 million to 25 million gallons.

According to Lamp, CVR continues to make progress with the development of feedstock pretreatment unit at the Wynnewood facility, with expected completion in the third quarter of this year. That pretreatment unit will allow the facility to process a wider range of renewable feedstocks.

Lamp also briefly discussed the internal restructuring to segregate the company’s renewables business, noting that the transaction should provide the company with more flexibility and optionality as it contemplates growing its renewables business over the next few years. “While we remain proud of our production of the petroleum products that fuel the lives of hardworking Americans, this corporate transformation should offer our renewables business a defined focus and better access to new capital and new partnerships to support future growth,” he said in a statement. “We believe we are uniquely positioned to competitively produce renewable fuels due to, among other reasons, our proximity to the farm belt, excess hydrogen capacity and existing CO₂ sequestration capabilities.”