CVR Energy Announces Full Board Approval for Wynnewood Renewable Diesel Unit Project
22 December 2020 - 12:00AM
CVR Energy, Inc. (NYSE: CVI) today announced that it has received
full approval from the Company’s Board of Directors for its
Wynnewood renewable diesel project, which will convert the
refinery’s hydrocracker unit for renewable diesel service. Upon
completion, which is expected in mid-2021, the Wynnewood refinery
should have the capability to produce nearly 100 million gallons of
renewable diesel per year and more than 6 million gallons of
renewable naphtha per year, significantly reducing its annual
Renewable Identification Number (“RIN”) exposure under the Clean
Air Act’s Renewable Fuel Standard (“RFS”).
“We are pleased to report that our Board of
Directors has granted final approval on Phase 1 of our renewable
diesel strategy,” said Dave Lamp, CVR Energy’s Chief Executive
Officer. “By leveraging assets already in place, particularly the
existing hydrocracker unit and underutilized hydrogen plant at our
Wynnewood refinery, we believe we can deliver one of the lowest
cost renewable diesel projects in the industry.
“Detailed engineering design work for the
project is underway,” Lamp said. “We also have ordered long
lead-time equipment and began construction work, as authorized by
the Oklahoma Department of Environmental Quality’s permitting
rules. We continue to expect the unit to be in service by July 1,
2021.”
The Company currently estimates total capital
costs for the project to be approximately $110 million, or $1.10
per gallon of renewable diesel capacity, most of which should be
recouped by the end of 2022 through the generation of RINs as well
as Blender’s Tax and Low Carbon Fuel Standard credits. The project
is expected to produce more than 100 million gallons of renewable
diesel and renewable naphtha per year, which would generate 170
million to 180 million RINs.
“Once completed, this project should further
enhance our stated goal of reducing our reliance on RIN purchases
to comply with the flawed RFS program,” Lamp concluded. “Between
our existing blending capabilities and the RINs generated from
renewable diesel, we expect our total net purchases would be less
than 80 million RINs per year once the unit is up and running.”
Forward-Looking StatementsThis
news release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements concerning current estimates, expectations and
projections about future results, performance, prospects,
opportunities, plans, actions and events and other statements,
concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws. These forward-looking statements include,
but are not limited to, statements regarding the renewable diesel
project at the Wynnewood refinery including our ability to complete
the project successfully or at all and the timing, cost,
throughput, permitting, construction, production, in-service date,
impact and benefit (if any) thereof; our renewable diesel strategy
and phases thereof; RIN, Blenders’ Tax and Low Carbon Fuel Standard
credits and our generation thereof; reduction of our reliance on
RIN purchases; blending operations; our cost compared to other
projects in the industry; and annual net RIN purchases. You can
generally identify forward-looking statements by our use of
forward-looking terminology such as “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,”
“intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,”
“should,” or “will,” or the negative thereof or other variations
thereon or comparable terminology. These forward-looking statements
are only predictions and involve known and unknown risks and
uncertainties, many of which are beyond our control. For additional
discussion of risk factors which may affect our results, please see
the risk factors and other disclosures included in our most recent
Annual Report on Form 10-K, any subsequently filed Quarterly
Reports on Form 10-Q and our other SEC filings. These and other
risks may cause our actual results, performance or achievements to
differ materially from any future results, performance or
achievements expressed or implied by these forward-looking
statements. Given these risks and uncertainties, you are cautioned
not to place undue reliance on such forward-looking statements. The
forward-looking statements included in this news release are made
only as of the date hereof. CVR Energy disclaims any intention or
obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by law.
About CVR Energy,
Inc.Headquartered in Sugar Land, Texas, CVR Energy is a
diversified holding company primarily engaged in the petroleum
refining and marketing business through its interest in CVR
Refining and the nitrogen fertilizer manufacturing business through
its interest in CVR Partners, LP. CVR Energy subsidiaries serve as
the general partner and own 35 percent of the common units of CVR
Partners.
For further information, please contact:
Investor Relations:Richard
RobertsCVR Energy, Inc.(281)
207-3205InvestorRelations@CVREnergy.com
Media Relations:Brandee
StephensCVR Energy, Inc.(281)
207-3516MediaRelations@CVREnergy.com
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