Vertex Energy buys Shell’s Mobile refinery to convert to renewable diesel

In Texas, Vertex Energy, Inc. has entered into a definitive agreement to acquire the Mobile refinery located in Mobile, Alabama from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company and Shell Chemical LP, subsidiaries of Royal Dutch Shell plc, for $75 million. The transaction is expected to close during the fourth quarter 2021, subject to regulatory clearance and various closing conditions.

Following the successful completion of a planned $85 million conversion of the Mobile refinery’s hydrocracking unit by year-end 2022, Vertex anticipates that the refinery will have the potential to generate at least $3 billion in annual sales and $400 million of gross profit annually beginning in 2023, given current refining economics.

The addition of renewable fuels production associated with the refinery will accelerate Vertex’s strategic focus on “clean” refining. By year-end 2022, the Mobile refinery is expected to produce approximately 10,000 barrels per day (bpd) of renewable diesel fuel and renewable byproducts. By mid-year 2023, based on current projections, Vertex expects to increase renewable diesel production to 14,000 bpd. Upon completion of the planned renewable diesel project, Vertex will become one of the leading independent producers of renewable fuels in the southeastern United States.