CVR reports profitable Q3 for renewable diesel, continues to evaluate SAF project
October 31, 2024
BY Erin Voegele
CVR Energy Inc. on Oct. 29 announced that the renewable diesel unit at its Wynnewood refinery in Oklahoma processed 19.6 million gallons of vegetable oil feedstock during the third quarter, down from 23.8 million gallons during the same period of 2023. The company said it ran the unit at lower utilization rates in an effort to optimize catalyst life.
David Lamp, CEO of CVR Energy, said the HOBO (heating oil to bean oil) spread for the third quarter was slightly weaker than the proceeding three months due to lower diesel prices. He noted the decrease was offset by higher prices for D4 renewable identification numbers (RINs) and Low Carbon Fuel Standard credits, which helped to drive a positive result for the quarter.
According to Lamp, the third quarter was the first full quarter of operations for the feedstock pretreatment unit. He said the company is pleased with the performance of the renewable diesel unit and pretreater for the three-month period.
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Lamp also provided an update on possible plans to produce sustainable aviation fuel (SAF). He said CVR Energy’s discussions with counterparties related to the potential conversion of the Wynnewood renewable diesel unit to 100% SAF are ongoing. He stressed that that potential conversion won’t move forward without an offtake structure for SAF that would provide the company with downside protection and minimize its reliance on government credits.
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