CVR Energy Inc.’s renewables segment on April 28 reported positive adjusted EBITDA for the first quarter of 2025 despite the expiration of the $1 per gallon blenders tax credit. Renewable diesel production volumes were up for the three-month period. 

CVR’s renewables segment includes the operations of the renewable diesel unit and renewable feedstock pretreater at its refinery in Wynnewood, Oklahoma. 

According to the company, total vegetable oil throughput for the first quarter was approximately 156,000 gallons per day, compared to approximately 76,000 gallons per day during the same period of last year. 

Renewables margin was $16 million, or $1.13 per vegetable oil throughput gallon, for the first quarter, compared to $4 million, or 65 cents per vegetable oil throughput gallon, for the same period of 2024. CVR Energy said factors contributing to the improved margin include higher net sales of $33 million resulting from increased production and sales volumes coupled with increased D4 renewable identification number (RIN) and Low Carbon Fuel Standard credit prices, partially offset by a decrease in average CARB ULSD prices of 26 cents per gallon. Higher net sales were partially offset by higher costs of sales of $22 million due to an increase in throughput and production volumes.

CVR Energy indicated that the renewables segment reported first quarter net income of $1 million and EBITDA of $6 million, compared to a net loss of $10 million and EBITDA loss of $4 million for the same period of last year. Adjusted EBITDA for the renewables segment was $3 million, compared to an adjusted EBITDA loss of $5 million.

During an earnings call held April 29, CVR Energy Chief Financial Officer Dane Neumann said renewable fuels throughput volumes are expected to increase during the second quarter, reaching between 16 and 20 million gallons, up from an estimated 14 million gallons during the first quarter. 

David Lamp, CEO of CVR Energy, said the company continues to evaluate whether its participation in the renewables business makes sense. As previously stated, Lamp said the company remains fully willing to participate in the renewables space, but cannot invest additional time and capital without further assurance from the government that it will support the businesses its policies have created. 

CVR Energy previously disclosed it was considering plans to produce sustainable aviation fuel (SAF), both at the Wynnewood refinery and the company’s Coffeyville refinery in Kansas. During a fourth quarter earning call held in February, Lamp said the company would need clarity on the availability and durability of government subsidies before it invests any additional capital into the proposed projects. He reiterated those sentiments during the first quarter call, stressing the company has learned through its experience in the renewables space that you can’t count on tax credits. To move forward with any additional SAF or renewable diesel projects, CVR Energy would need to partner with someone willing to take on that risk.