CVR Energy Inc. began operations at its newly converted renewable diesel unit at its Wynnewood refinery in Oklahoma in mid-April. That unit processed approximately 3,100 barrels per day of vegetable oil feedstock during the second quarter, according to comments made by CEO David Lamp during the company’s second quarter earnings call, held Aug. 2. Lamp said the facility has been gradually increasing its run-rate over the past few months.

Total throughputs in July were approximately 3,600 barrels per day, and the facility continues to ramp up to full production, Lamp said. The first catalyst change for the renewable diesel unit is scheduled for October, which will take the renewable diesel unit down for approximately 20 days. Lamp also noted that work is continuing on the planned feedstock pretreatment unit, which is expected to be complete and online during the second half of 2023. With the addition of the feedstock pretreatment unit, Lamp said CVR believes it could see margin improvement of approximately $1 per gallon. The company has also begun to look at sourcing some pretreated feedstock, according to Lamp.

From an operating standpoint, Lamp said the renewable diesel conversion has been relatively straightforward and easy. Logistics, however, have been more challenging. He said one of the company’s bigger challenges has been getting the railroad in tune with its needs to deliver soybean oil and corn oil on a timely basis, as well as remove product on a timely basis. The company is continuing to work through those challenges, he indicated.  

Lamp also discussed ongoing plans to break out CVR’s renewable business. He said the company has created 17 new entities and in early July completed the distribution of certain refining real estate assets into the appropriate entities. The company currently expects to complete the reorganization during the first half of 2023 and intends to begin reporting separate renewable segments when appropriate.