CVR pauses development of potential SAF projects pending regulatory, tax credit clarity
February 20, 2025
CVR Energy Inc. released fourth quarter financial results on Feb. 18, reporting reduced renewable diesel production. The company also said it is pausing development of sustainable aviation fuel (SAF) capacity pending clarity on government subsidies.
CVR Energy’s refinery in Wynnewood, Oklahoma, processed approximately 187,000 gallons per day of renewable feedstock during the fourth quarter, down from 200,000 gallons per day during the same period of 2023. Total vegetable oil throughput for the full year 2024 was approximately 151,000 gallons per day, down from 226,000 gallons per day in 2023. Dane Neumann, chief financial officer at CVR Energy, estimates first quarter 2025 renewables throughput to be in the range of 13 million to 16 million gallons, which he said will be impacted by a catalyst change completed in January.
The company said renewables margin was $14 million, or 79 cents per vegetable oil throughput gallon, for the fourth quarter, compared to a loss of $17 million, or 90 cents per vegetable oil throughput gallon, during the same period of the previous year. Renewables margin or the full year was $44 million, or 80 cents per vegetable oil throughput gallons, compared to $22 million, or 27 cents per vegetable oil throughput gallon, in 2023.
The renewables segment reported a fourth quarter net loss of $3 million and EBITDA of $3 million, compared to a net loss of $30 million and EBITDA loss of $26 million for the fourth quarter of 2023. For the full year, net loss was $21 million and EBITDA was $3 million, compared to a net loss of $36 million and EBITDA loss of $17 million in 2023.
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David Lamp, CEO of CVR Energy, said the company is reducing the nameplate capacity of the Wynnewood renewable diesel operations from 100 MMgy to 80 MMgy due to catalyst limitations.
Lamp also briefly discussed the company’s pending plans to produce SAF. He said CVR has complete the design of a SAF/renewable diesel project near its Coffeyville refinery in Kansas and has a firm understanding of its capacity to convert the Wynnewood renewable diesel unit to SAF. While there potential to pursue those opportunities in the future, Lamp said the company must first get clarity on the availability and durability of government subsidies before it invests additional capital into the proposed projects. Lamp stressed that CVR Energy remains willing to further participate in the renewables space, but is pausing efforts to actively pursue the market for partners and investors.
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