CVR Energy to issue decision on renewable diesel project soon

By Erin Voegele | August 06, 2020

Dave Lamp, CEO of Texas-based oil refiner CVR Energy, announced on Aug. 4 that the company’s board has authorized engineering studies and the preparation of final cost estimates for a project that would convert some of the company’s refining capacity to renewable diesel production.

Lamp made the comments during the company’s second quarter earnings call.  

CRV first announced it was considering converting some of its refining units to renewable diesel as a way to offset costs associated with Renewable Fuel Standard compliance earlier this year. That project is now taking another step forward.

The conversion project would take place at CVR’s refinery in Wynnewood, Oklahoma. Lamp explained the company would convert an existing hydrocracker to allow for the production of renewable diesel. The refining unit would retain the flexibility to return to hydrocarbon processing, should the economics support doing so, Lamp explained.

He said the initial design would enable the production of 6,000 to 7,000 barrels per day. If final approval for the project is received, renewable diesel production could begin as soon as mid-2021. He said a final decision is expected to be made in September.