CVR Energy continues to consider SAF projects at 2 refineries
February 26, 2024
BY Erin Voegele
CVR Energy Inc. released fourth quarter financial results on Feb. 20, reporting that the feedstock pretreatment unit at its Wynnewood biorefinery in Oklahoma is mechanically complete. The company is also continuing to evaluate projects to add sustainable aviation fuel (SAF) capacity at two of its refineries.
David Lamp, CEO of CVR Energy, discussed both the existing Wynnewood renewable diesel project and the company’s plans to expand into SAF production during a fourth quarter earnings call, held Feb. 21.
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According to Lamp, the Wynnewood renewable diesel unit processed approximately 18 million gallons of vegetable oil during the fourth quarter of 2023. The HOBO spread improved from the third quarter, primarily due to declines in soybean oil prices, he said. Those improvement was more than offset by the decline in D4 renewable identification number (RIN) prices and a weaker basis for California diesel, Lamp added.
For the full year 2023, the Wynnewood facility processed approximately 82.5 million gallons of vegetable oil feedstock, up from 42.5 million gallons in 2022. CVR Energy primarily attributed the increase to the renewable diesel unit being operational for all of 2023, compared to the prior year, when the unit began operations in April.
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Lamp said the new feedstock pretreatment unit at the Wynnewood facility was mechanically complete at the end of the first quarter. He said the unit was expected to begin processing feedstock within days of the Feb. 21 earnings call. He also noted that CVR Energy plans to complete a catalyst change at the renewable diesel unit over the next few weeks, while the company undertakes planned turnaround work at the Wynnewood facility.
For the balance of 2024, Lamp said CVR Energy plans to run the renewable diesel unit at a slightly reduced rate in an effort to optimize catalyst life and increase product yields. He also indicated that the company is continuing to evaluate opportunities for renewables expansions, particularly the addition of SAF capacity at the Wynnewood facility and CVR Energy’s Coffeyville refinery in Kansas.
For the potential Wynnewood expansion, Lamp said the company plans to begin soliciting bids over the next few months for offtake agreements that would support the conversion of the existing renewable diesel unit to 100% SAF. CVR Energy is also considering a larger project at the Coffeyville facility. Lamp said the company currently expects to have preliminary engineering and cost estimating work complete for that potential project by the end of the first quarter. CVR Energy currently plans to approach the market in the second half of 2024 to solicit bids for partners to invest in the construction of a renewable diesel and SAF facility near Coffeyville with a capacity of up to 500 MMgy, he said. Lamp said board approval of the project will depend on the company’s ability to find partners willing to fund the cost of construction.
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