Tidewater enters planning stage for SAF project in British Columbia
Tidewater Midstream and Infrastructure Ltd. announced in its fourth-quarter and year-end financial results March 14 that Tidewater Renewables and Tidewater have entered into a joint-development agreement in the first quarter of this year related to a new renewable diesel and sustainable aviation fuel (SAF) project in British Columbia.
The new SAF project in British Columbia can utilize infrastructure at Tidewater’s Prince George Refinery and its recently completed and now-operational 45 mgy renewable diesel and renewable hydrogen complex on site.
Tidewater Renewables completed a feasibility assessment for an expansion of its renewable fuel facilities last year.
The new renewable diesel and SAF project is being scaled at 6,500 barrels (273,000 gallons) per day, or between 90 million gallons per year (mgy) and 100 mgy.
According to Tidewater, both parties have the right to participate in up to 50 percent of the project upon a final-investment decision.
The new SAF facility is expected to leverage many of the same processes used in the operating renewable diesel and hydrogen complex.
Front-end engineering design (FEED) work on the SAF facility has begun, with the cost to be covered through government support in the form of capital emissions credits, according to Tidewater.
FEED and regulatory applications are expected to be completed in 2025.
Tidewater Renewables’ existing 45 mgy renewable diesel complex reached commercial operations late last year.
The facility reached its design capacity in early December before encountering some initial operational challenges, the most significant of which related to compressor failures, according to Tidewater Renewables.
The issues have since been resolved and renewable diesel production returned to design capacity in late February.
Tidewater expects the renewable diesel complex to achieve a utilization rate of approximately 65 percent this quarter “and to continue to operate reliably at design capacity going forward,” the company stated.
Tidewater Renewables has secured purchasers for the renewable diesel complex’s operating emission credit production through the second quarter.
Tidewater Midstream and Infrastructure reported a consolidated net loss attributable to shareholders of CAD$331.8 million (USD$245.7 million) during the fourth quarter compared to CAD$30 million (USD$22.2 million) during the same period the previous year.
For the full year, consolidated net loss attributable to shareholders in 2023 was CAD$385.9 million (USD$285.8 million) compared to net income attributable to shareholders of CAD$8.5 million (USD$6.3 million) during the full year in 2022.
The higher losses reported in 2023 are primarily a result of higher unrealized losses on derivative contracts, noncash impairment charges taken during the fourth quarter of 2023, and the second quarter 2023 turnaround at the Prince George Refinery impacting full-year results, the company said.
During the fourth quarter of 2023, Tidewater Renewables reported a net loss attributable to shareholders of CAD$12.7 million (USD$9.4 million), inclusive of CAD$19.6 million (USD$14.5 million) of losses on derivative contracts.
“I’ve joined Tidewater at a very exciting time and I am pleased to be a part of the team,” said Jeremy Baines, who was appointed CEO of both companies in January. “I’ve had the chance to get to know our people, visit a number of key facilities and I am very encouraged by the opportunities in Tidewater’s future. … The [renewable diesel and renewable hydrogen] complex has reached new production milestones in 2024 and we are seeing strong demand for R30 diesel (a blend of 30 percent renewable diesel). Our team is focused on controlling costs and optimizing returns within our asset base and we will continue to de-lever to position for the long-term growth of our business. The planning stages of our SAF project have begun, which is a project that closely aligns with our conventional and renewable fuel businesses at the Prince George Refinery and will allow us to further expand our existing infrastructure.”
Baines was also appointed chairman of Tidewater Renewables’ board of directors March 13.
“I am thrilled to join the Tidewater Renewables team at a transformative time and see the corporation as being well positioned to be a leader in the global energy transition,” he said. “Now that we have stabilized operations at the [renewable diesel and renewable hydrogen] complex, we are in a strong position to optimize returns, maximize free cash flow as well as to help our customers meet their long term ESG goals. With our expertise acquired on the [renewable diesel] complex, we also are optimistic about the emission-reduction opportunities the SAF project will bring to the people of British Columbia and Canadians in general.”
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