US company announces expansion of renewables business
HollyFrontier Corporation has announced plans to convert the Cheyenne Refinery to renewable diesel production.
The company also plans to construct a pre-treatment unit (PTU) located at the Artesia Refinery. HollyFrontier is expected to have a combined capacity to produce over 200 million gallons per year of renewable diesel and pre-treat over 80% of its feedstock.
It is expected to invest between $650-$750 million (€571-€659 million) in its renewables business.
Mike Jennings, HollyFrontier’s president and CEO, said: “Demand for renewable diesel, as well as other lower carbon fuels, is growing and taking market share based on both consumer preferences and support from substantial federal and state government incentive programs.
“This represents an exciting opportunity to enhance both the profitability and environmental footprint of HollyFrontier through organic investment.
He added: “These announcements lay the groundwork for an integrated renewables business at HollyFrontier, including multiple renewable diesel plants with feedstock flexibility. After 86 years as a petroleum refinery, Cheyenne will take on a new challenge.
“We realise that this decision affects many employees, their families and the community. We are thankful to all of our colleagues in Cheyenne and will work closely with those impacted by this decision.”
HollyFrontier expects the project will be completed in the first quarter of 2022 and generate an internal rate of return of 20-30%.
The company estimates the capital cost of the PTU to be $175-$225 million (€153-€197 million) and the in-service date to be in the first half of 2022.
The company also plans to construct a pre-treatment unit (PTU) located at the Artesia Refinery. HollyFrontier is expected to have a combined capacity to produce over 200 million gallons per year of renewable diesel and pre-treat over 80% of its feedstock.
It is expected to invest between $650-$750 million (€571-€659 million) in its renewables business.
Mike Jennings, HollyFrontier’s president and CEO, said: “Demand for renewable diesel, as well as other lower carbon fuels, is growing and taking market share based on both consumer preferences and support from substantial federal and state government incentive programs.
“This represents an exciting opportunity to enhance both the profitability and environmental footprint of HollyFrontier through organic investment.
He added: “These announcements lay the groundwork for an integrated renewables business at HollyFrontier, including multiple renewable diesel plants with feedstock flexibility. After 86 years as a petroleum refinery, Cheyenne will take on a new challenge.
“We realise that this decision affects many employees, their families and the community. We are thankful to all of our colleagues in Cheyenne and will work closely with those impacted by this decision.”
HollyFrontier expects the project will be completed in the first quarter of 2022 and generate an internal rate of return of 20-30%.
The company estimates the capital cost of the PTU to be $175-$225 million (€153-€197 million) and the in-service date to be in the first half of 2022.
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