Tidewater developing renewable diesel and hydrogen complex at Prince George refinery

March 11, 2021 |

In Canada, Tidewater Midstream and Infrastructure is developing a 3,000 barrels per day renewable diesel and renewable hydrogen complex located on the site of Tidewater’s existing Prince George Refinery in British Columbia, for an estimated total project cost of C$215 to C$235 million. The renewable diesel and renewable hydrogen complex will be a stand-alone renewables complex focused on 100% renewable feedstock and will include a pretreatment facility to provide Tidewater significant flexibility on running various renewable feedstocks. Tidewater has received BC government commitments of approximately C$100 million in the form of BC Low Carbon Fuel Standard Credits (based on the current market value) for the construction of the complex, representing approximately 45% of the mid-point total project cost of approximately C$225 million.  Project funding is predicated on management’s current estimate of the asset generating over C$75 million of EBITDA in its first year of operations, which is anticipated as early as 2023, and excludes any incremental EBITDA upside from hydrogen production and the credit value associated with the Canadian Clean Fuel Standard. The consumer use of the produced renewable diesel and renewable hydrogen is expected to reduce carbon intensity and related GHG emissions by approximately 80-90% and 65-75% respectively, versus conventional diesel which represents the equivalent of removing approximately 70,000 – 80,000 vehicles from the road annually. Tidewater is working through additional means to further reduce the carbon intensity of the renewable diesel to be produced.

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Category: Fuels

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