Tidewater Renewables sells BC LCFS credits for more than expected
In Canada, Tidewater Renewables Ltd. announced a multi-year agreement with an investment-grade company to sell British Columbia Low Carbon Fuel Standard credits that it will receive through the construction of the Renewable Diesel & Renewable Hydrogen Complex at Prince George, BC, at values higher than previously budgeted.
As part of the transaction, Tidewater Renewables has agreed to sell a total of 125,000 BC LCFS credits at C$425 per credit, as compared to the previously disclosed budgeted value of C$375 per credit for credits to be received under the Renewable Diesel Project Part 3 Agreement with the British Columbia Government. This multi-year agreement, which extends to January 2024, significantly reduces the value realization risk on a portion of the BC LCFS credits that Tidewater Renewables will receive, realizing total proceeds of over C$53 million over the term of this agreement. The Corporation continues to work on other potential multi-year agreements to monetize further credits that it will receive from the construction and operation of the complex, from its canola co-processing facility, and from other projects.
In addition to the 275,750 BC LCFS credits Tidewater Renewables expects to receive for construction and commissioning of the complex, the corporation will also generate credits through the operation of the Renewable Diesel & Renewable Hydrogen Complex expected to be on-line in the first quarter of 2023.
Category: Fuels
