Vertex Energy to retire 18.7 million RINs under proposed consent decree
January 6, 2025
BY Erin Voegele
Vertex Energy Inc. could be required to retire over 18.7 million renewable identification number (RIN) credits by March 31, 2025, to satisfy its 2023 and 2024 Renewable Fuel Standard blending obligations under a proposed Consent Decree and Environmental Settlement Agreement lodged by the U.S. government.
Vertex in mid-2021 announced an agreement to acquire a refinery in Mobile, Alabama, and convert a portion of it to renewable diesel production. The renewable diesel unit began operations during the first half of 2023 and in July 2023 had achieved its phase 1 capacity target of 8,000 barrels per day. The company had originally planned a phase 2 expansion project that would have expanded production capacity to 14,000 barrels per day by the first quarter of 2025.
Advertisement
Citing market conditions, the company in May 2024 announced plans to shelve renewable diesel production at the Mobile refinery and return the facility to fossil fuel production. The facility ceased renewable diesel production in August 2024. The following month, Vertex filed for Chapter 11 bankruptcy in the U.S. bankruptcy Court for the Southern District of Texas. As part of that announcement, the company said it would explore the possible sale of its refinery in Mobile.
According to court filings, the facility was scheduled to be sold via bankruptcy auction On Dec. 11. The auction, however, was postponed due to a lack of qualified bidders. The bankruptcy case is ongoing.
Advertisement
As part of the bankruptcy proceedings, the U.S. Department of Justice on Dec. 17 lodged a proposed Consent Decree and Environmental Settlement Agreement with the court. The proposed consent decree requires Vertex to retire more than 18.7 million RINs, currently estimated to cost approximately $15 million, to comply with its 2023 and 2024 renewable volume obligations (RVOs).
The 18.7 million RINs is to include 761,064 unexpired valid D3 cellulosic biofuel RINs; 4.22 million unexpired valid D4 biomass-based diesel RINs; 518,071 unexpired valid D5 advanced biofuel RINs; and 13.3 million unexpired valid D6 renewable fuel RINs. All RINs are to be retired by March 31, 2025.
A public comment period was open for 10 days following the Dec. 17 release of the proposed consent decree. A full copy of the proposed consent decree is available on the DOJ website.
Related Stories
HutanBio on May 8 announced that the production process for its proprietary HBx microalgal biofuel achieves net-negative carbon emissions, based on an independent cradle-to-gate life cycle assessment (LCA) conducted by EcoAct.
Reps. Zach Nunn, R-Iowa, and Nikki Budzinski, D-Ill., on May 7 introduced a bill that aims to update USDA’s Section 9003 program to expand access to grants, streamline loan guarantees and provide $100 million in mandatory funding over five years.
Novonesis on May 8 released fourth quarter financial results, reporting its Agriculture, Energy and Tech segment achieved 10% organic growth during the three-month period. Much of that increase was driven by the biofuels industry.
On May 6, the Sustainable Aviation Buyers Alliance released a request for proposal (RFP) to increase the supply of next-generation sustainable aviation fuel (SAF), including power-to-liquids and those using advanced biobased feedstocks.
Sunoco LP on May 5 announced a definitive agreement to acquire all outstanding shares of Parkland Corp. The Burnaby refinery, which recently began to produce SAF, is among the assets subject to the transaction.
Upcoming Events
