Vertex returns Mobile facility to fossil production, preserves renewable production capabilities
October 14, 2024
BY Erin Voegele
Vertex Energy Inc. on Oct. 9 confirmed that its refinery in Mobile, Alabama, is again producing fossil-based fuels. The company, however, confirmed that it has preserved renewable fuels production capabilities at the plant. Renewable diesel production could resume in the future, should market conditions warrant the change, according to Vertex.
Vertex in mid-2021 announced an agreement to acquire the Mobile refinery and convert a portion of it to renewable diesel production. The renewable diesel unit began operations in Spring 2023. In June 2023, Vertex announced it had completed the first series of commercial sales transactions of renewable diesel. The following month, the company announced the renewable diesel unit had achieved its phase 1 capacity target of 8,000 barrels per day. The company previously announced plans for a phase 2 expansion that would have expanded production capacity to 14,000 barrels per day by the first quarter of 2025.
The renewable diesel conversion project was designed to allow Vertex to redeploy the facility’s renewable equipment back into conventional production. Citing current market conditions, Vertex earlier this year announced it had elected to pause renewables production at the Mobile refinery. The company on Aug. 8 announced it had ceased renewable diesel production and was working to convert its hydrocracker back to conventional service. At that time, Vertex said it expected the Mobile refinery to resume fossil feedstock processing before the end of the year.
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While Vertex was converting the facility back to fossil fuel production, the company on Sept. 24 filed for Chapter 11 bankruptcy in the U.S. bankruptcy Court for the Southern District of Texas. At that time, Vertex said it is exploring the possible sale of the Mobile refinery.
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