Tidewater’s renewable diesel facility in BC ‘quickly approaching commercial operations’

Tidewater Renewables Ltd. announced in its second-quarter financials that the company’s renewable diesel complex, scaled at approximately 45 million gallons per year and located at its Prince George Refinery in British Columbia, Canada, is quickly approaching commercial operations.

The company said it recently began commissioning the feedstock-pretreatment unit.

The first production of renewable hydrogen is expected by mid-August, and the start-up of the renewable diesel unit is anticipated in late August, with commercial operations beginning shortly thereafter.

The complex is expected to be one of the first sizable producers of credits under the British Columbia Low Carbon Fuel Standard and federal Clean Fuel Regulations.

The renewable diesel complex is mechanically complete and most of the commissioning milestones have been achieved, Tidewater Renewables stated.

Commercial operations were delayed from June to late August due to resource challenges and minor commissioning issues, the company reported.

“This delay is expected to raise gross project costs by approximately CAD$8 million (USD$5.96 million,” Tidewater Renewables shared. “However, this is anticipated to be entirely offset by the higher realized value of capital emissions credits. Net project costs and run rate EBITDA expectations are in line with previous guidance and the project’s economics remain attractive with payback expected within two to three years.”

Interim CEO Rob Colcleugh said, “Tidewater Renewables is only weeks away from first production at the [renewable diesel] complex. We take great pride in completing the construction of this innovative facility within two years while maintaining our impeccable safety record. The [renewable diesel] complex is Canada’s first standalone renewable diesel facility, and its cash flow is expected to launch the next stage of Tidewater Renewables’ growth.”

The company said it continues to see strong industry fundamentals, including robust prices for renewable fuels and strong demand for environmental credits.

This demand is supported by escalating compliance requirements and voluntary environmental commitments.

Tidewater Renewables added that once the renewable diesel complex is successfully commissioned it is dedicated to strengthening its financial position, repaying debt and progressing the development of its renewable natural gas facility.

“Tidewater Renewables continues to observe robust social and government support for the energy transition, and the incremental adjusted EBITDA from the [renewable diesel] complex is expected to launch the next phase of the corporation’s growth,” the company stated.