PBF Energy weighs renewables project at Louisiana refinery

PBF Energy Inc. is considering a major investment to implement a renewable diesel project at subsidiary Chalmette Refining LLC’s 185,000-b/d dual-train coking refinery in Chalmette, St. Bernard Parish, La., outside of New Orleans.

As part of the potential project to ensure ongoing competitiveness and employment for the refinery’s current 516 employees, PBF Energy would invest $550 million to retrofit an existing hydrocracking unit idled since 2010 with new technology to enable renewable diesel production at the site, Louisiana Economic Development (LED) and the operator said.

The project, which would support an additional 200 jobs during its execution, also would include construction of a pretreatment unit at the manufacturing site to allow Chalmette Refining to process renewable materials such as soybean oil, corn oil, and other biogenically derived fats and oils into feedstocks for the revamped unit.

The proposed unit conversion comes as part of PBF Energy’s recovery efforts from economic impacts sustained as a result of the coronavirus pandemic, as well as the company’s plan to prepare the refinery for a green energy transition, said Steven Krynski, PBF Chalmette’s refinery manager.

To secure the project, which aligns with goals of Louisiana’s Climate Initiatives Task Force initiative to pursue lower greenhouse gas emissions, the LED has offered PBF Energy incentives that include solutions of its FastStart state workforce training program, as well as access to Louisiana’s Industrial Tax Exemption Program (ITEP).

Granting of ITEP incentives, however, remain subject to final approval of the project by St. Bernard Parish local officials, which is due sometime later this summer, LED said.

PBF Energy said it plans to reach final investment decision on the planned Chalmette renewables conversion following St. Bernard Parish local taxing bodies consider the project.

The Chalmette refinery—which PBF Energy acquired from ExxonMobil Corp. and Petroleos de Venezuela SA (PDVSA) in 2015—is equipped with flexibility to source and process a mix of light and heavy crudes to produce mostly gasoline, distillates, and specialty chemicals for distribution locally and abroad via connecting pipeline and maritime assets (OGJ Online, Nov. 2, 2015).