Braya Renewable Fuels begins commercial operations
The newly converted Braya Renewable Fuels refinery in Come By Chance, NL, overlooking Placentia Bay. / SOURCE: CNW Group/Braya Renewable Fuels
February 22, 2024
BY Erin Voegele
Braya Renewable Fuels on Feb. 22 announced that its project to convert an oil refinery in Come By Chance, Newfoundland and Labrador, to renewable fuels is now complete and that commercial operations have commenced.
The facility is expected to initially produce up to 18,000 barrels per day of renewable diesel. The company plans to expand production capacity in the future and add capability to produce sustainable aviation fuel (SAF). Braya is also exploring the possibility of adding green hydrogen production capacity at the site.
"We are incredibly grateful for all of the hard work and dedication of the Braya team that has allowed us to achieve commercial operations at the refinery," said Todd O'Malley, Braya's CEO. "I would personally like to thank our workers, the community, all levels of government, and our partners who have helped to bring our vision of a world-class renewable fuel facility to fruition. We are proud to be a cornerstone in the energy transition path and to provide stable and long-term employment opportunities in the local community."
Dallas, Texas-based private equity fund Cresta Fund Management acquired a controlling interest in the then-idle oil refinery in late 2021. Braya in April 2023 announced a $300 million preferred equity investment by Energy Capital Partners. The company last year said the investment from ECP completed the financing for the conversion project. North Atlantic Refining Corp., which is managed by Silverpeak also owns a minority stake in Braya. In addition, the project benefited from government funding. The Canadian government in May 2023 announced plans to invest $86 million in the project through Natural Resources Canada’s Clean Fuels Fund and Innovation, Science and Economic Development’s Strategic Innovation Fund.
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In November 2023, Braya announced the closing of two transactions that supported the conversion of the refinery, including a supply and offtake agreement with Macquarie Energy Canada Ltd., a subsidiary of Macquarie Group’s Commodities and Global Markets group, to provide inventory monetization for renewable feedstocks and products and a USD $75 million senior secured term loan with HPS Investment Partners LLC which the company said would be used to further the renewable diesel conversion project.
In an announcement released Feb. 22, Braya noted the biorefinery conversion project has resurrected a vital assets for the local community. The refinery conversion supported more than 800 jobs during the construction phase and is expected to provide 200 stable, full-time positions to support ongoing operations. The company has announced plans hold a ribbon-cutting ceremony this spring to celebrate the project.
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