NEXT Renewable Fuels and its big, big, big, long, long, long project in Oregon

October 6, 2022 |

We’ve long admired NEXT Renewable Fuels, developing one of the largest renewable diesel and plants in the nation, at Port Westward, near Clastskanie, on the Columbia River west of Portland. The Energizer Bunny could take lessons from these guys. They just keep beating the bioeconomy project development drum, no matter what. Last month, they broke through on their air permit. This month, the Oregon DEQ knocked back their water quality permit for the second time. They’ll just keep at it, in their keep-at-itly way.

In some ways, the NEXT story is the answer to the question, why doesn’t the whole loving world descend upon Oregon for bioeconomy projects?

Consider these tidbits. The state has the highest corn yield per acre in the nation (as the Crop Prophet chart below illuminates). Sublime! The state is a paradise of infrastructure along the Columbia River. Valhalla! It’s perfect for inexpensively moving materials in and product out, via barge. Elysium! Oregon has a Low Carbon Fuel Standard. Heaven! The state government is supportive of decarbonization. Nirvana!

So, what’s the problem? 

I think the answer lies in the old Sinatra song, Nice ’n’ Easy, when he sang: “We’re on the road to romance / That’s safe to say / But let’s make all the stops along the way.” Getting approvals in Oregon is, as we understand it, like rowing in a lake of peanut butter. The effort is there, the parties are willing. It’s just so darn hard and so darn slow that a lot of people get the idea that Oregon is where bioeconomy projects go to die.

Accordingly, NEXT is one of just a handful of hardy pioneers of Northwest projects. REG has a massive biodiesel facility in Washington state, Red Rock’s been valiant in developing in southwest Oregon, Zeachem built a demo plant near Boardman; there are small biodiesel facilities dotted around, some Alto Ingredients ethanol capacity also at Boardman. NWABF has been working hard to bring a forest waste-to-fuels project to life, north of the Columbia.  Pioneers they are, and a hardscrabble life they lead until they get the darn projects in. In the end, it’s a great state, and it’s worth it.

Let’s look at the project fundamentals, and some updates. Here are some handy visuals for NEXT Renewable Fuels project. 

What will the facility produce? 

About 90% of the output will be NEXT’s Advanced Green Diesel and SAF. About 9% will be turned into renewable propane that will be recycled back into the refining process and a small percentage will become other residual renewable products. They tout as much as 85 percent less greenhouse gas emissions compared to petroleum‐based diesel.

Some changes to the plan since we last highlighted the project.

1. New partners. First of all, while Honeywell UOP remains the core technology supplier, they had Fluor in for the FEL-2 engineering (after an initial relationship with IAG some years back), and they are now doing their FEED.

2. New capacity and configuration. Originally there were a maximum of three production trains at 12,500 barrels per day each. Owing to some improvements in the performance of the design, this has now morphed into two trains of 21,000 barrels per day each. And there’s further upside in the design — so that the total, final, ultimately-we’ll-get-there nameplate  is in the 50,000 barrel per day range, and for that think 765 million gallons, give or take a few.

3. Timing. There had been some talk of 2024, we checked with management and their guidance is 2023 for completion of permitting and 2025 for the operating facility, given a commissioning period. 

4. BP is the feedstock partner. As we reported some time back, BP is the somewhat surprising feedstock procurement choice — not because of a lack of feedstock chops, it’s just that BP is better known for refining, and oil & gas feedstock exploration. It’s, ahem, what the P in BP stands for — petroleum, but maybe that should be Biofeedstock Procurement, in this case. NEXT CEO Chris Efird advises, “BP is working across a variety of different feedstocks. We are taking a very broad view. So, there’s FOG, veggie oils, the emerging cover crops and camelina. We’re all fighting together for the lowest CI possible. 

5. The cost. At some stage there was discussion of around $1.1 billion for the project. Now, there’s more capacity, and earlier, and we’ve heard around the industry that NEXT is taking on a higher-capex design to get economies in the operating cost. Makes sense. In any case, put the project cost at close to $2 billion and you’d probably be right near the final sum.

The NEXT Backstory

Oregon DEQ rejects Next Renewable’s water quality permit for second time

Oregon Department of Environmental Quality approves NEXT Renewable Fuels’ air quality permit 

Support grows for Next Renewable Fuels Project in Oregon 

NEXT Renewable Fuels scores latest state permits for $2B Oregon project 

NEXT Renewable Fuels running up against wetlands challenges for Oregon project

County commissioners OK NEXT Renewables’ Port Westward lease 

BP Production to supply NEXT Renewable Fuels with 13.2 million barrels a year of feedstock 

NEXT Renewable Fuels selects 94 acres for green diesel facility 

NEXT Renewable Fuels buys 25 acres in Oregon port to produce Advanced Green Diesel

The Bottom Line

It’s a long, long day developing anything in Oregon that smacks of fuels. As the Sinatra song puts it: ““The problem now of course is / To simply hold your horses / To rush would be a crime / ‘Cause nice and easy does it…Every time”

Meanwhile, there’s a mobility crisis — our Western system of commerce demands long-range, huge-lift transport — that’s what diesel and jet are all about. Alternatives are sustainable, available, reliable, affordable, reliable — that usually is enough to get a project over the permitting line. Let’s hope so.

So, the story from Oregon is that it’s a slow road to energy freedom, but that doesn’t change the fact that Oregon is a terrific place to find feedstock and infrastructure. The gang at NEXT might muse from time to time about re-naming their company BY GRABTHAR’S HAMMER, EVENTUALLY — but when they get to the finish line, this is going to be one spectacular project.

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