Idled Kentucky refinery to get new life as biodiesel plant

Hemisphere Ltd. LLC subsidiary Continental Refining Co. LLC (CRC) is evaluating a plan to convert CRC’s now idled 5,500-b/d crude oil refinery in Somerset, Ky., into a biodiesel production site.

The proposed $25-million investment would involve acquiring, relocating, and installing a soybean-crushing, biodiesel refining, and blending facility equipped to process 3 million bushels/year of locally sourced soybean production into biofuels and other soy-based products, CRC said on Nov. 18.

Alongside producing up to 5 million gal/year of renewable-based, ultralow-sulfur diesel—including B6 to B100 biodiesel—the repurposed site also would produce high-protein fiber meal for animal feed, soybean oil for industrial use, and crude glycerin.

“Like many rural parts of America, the Pulaski County [,Ky.] region has industries and institutions that rely on diesel fuels,” said Demetrios Haseotes, Hemisphere’s chief executive officer. “And because Kentucky is ranked #15 in the nation for soybean production, the region also has the raw materials and technology to make biodiesel at a scale that reflects the local and regional demand.”

While it disclosed no further operational details regarding the Somerset refinery conversion plan, CRC did confirm that, if approved, construction on the project, as well as reception and processing of soybeans, would begin by October 2021.

The intended agricultural technology, or AgriTech, redevelopment plan for the Somerset refinery follows Haseotes’ 2011 purchase and more than $40-million additional investment to upgrade and modernize crude processing capabilities of the plant, which he restarted in January 2013 after its shuttering in 2010 under former owner Somerset Energy Refining LLC (OGJ Online, Sept. 6, 2016; Mar. 29, 2016; Dec. 14, 2011).

Hemisphere subsequently halted operations at the refinery again in 2018 to conduct economic and engineering studies for a proposed $75-million modernization program that would involve an overhaul of every unit in the plant (OGJ Online, June 26, 2020).

In July 2020, however, CRC decided the already idled refinery would permanently remain offline and be redeveloped into another business or commercial properties, according to the operator’s website.