Vertex’s Conversion of Alabama Refinery to Renewable Diesel Delayed in Q1 2023 : Biofuels Digest
In Texas, Vertex is currently working to complete a $90-100 million capital project designed to modify the existing hydrocracking unit at the Mobile, Alabama refinery to produce renewable diesel fuel. in an autonomous way. Upon completion of the conversion project, the refinery is expected to begin production of approximately 8,000 to 10,000 barrels per day (bpd) of renewable diesel, with production volumes then expected to increase to approximately 14,000 bpd. This project aims to capitalize on the growing demand for advanced sustainable fuels, while further developing Vertex’s commitment to providing low carbon fuel solutions.
After a thorough review of project execution risk by the Company, the mechanical completion of the Mobile Refinery renewable diesel conversion project has been proactively extended from its original 2022 year-end target to the first quarter of 2023. These risk considerations are the result of recent COVID-19 induced product delays and global supply chain shortages in several previously unaffected markets, including common pipes, valves and fittings, and certain bulk base materials. The limited visibility on a solution to these challenges, combined with the significant financial benefits associated with reduced downtime and the expansion of current operations, allowed the company to respond by extending the project schedule to ensure that all necessary parts and materials are ready and on site before the hydrocracking unit is shut down.
Management now expects mechanical completion to take place in the first quarter of 2023, with production expected to begin in the second quarter of 2023, an extension of approximately one quarter of the previously communicated schedule.