Vertex increases Q1 capex for renewable diesel conversion project
Vertex Energy Inc., Houston, increased its first-quarter 2023 capital expenditure guidance to $65-70 million from $30-35 million, the result of moving $35 million of planned second-quarter spending for subsidiary Vertex Refining Alabama LLC’s renewable diesel conversion project to the first quarter.
The total budget for Phase I of the conversion project at the 75,000-b/d refining and petrochemical complex in Mobile, Ala., remains in line with the previous target range of $110-115 million, the company said.
The project is currently in commissioning and startup following mechanical completion in late March and remains on the projected timeline, said Benjamin P. Cowart, president and chief operating officer.
“While the updated capex range for [first-quarter 2023] is now expected to be higher than we had initially forecasted, we believe our decision to leverage [second-quarter2023] capital expenditures on the [renewable diesel] project, to include some Phase II items, provides the best value over time,” as the company moves toward startup and launch, he continued.
Throughput volumes at the Alabama refinery for first-quarter 2023 are 69,000-72,000 b/d, in line with the previous forecast, the company said.
The sequentially lower throughput volumes compared with fourth-quarter 2022 reflect the planned downtime associated with the final stages of reaching mechanical completion of the renewable project.
Once operable, the Mobile refinery’s converted hydrocracking unit—which previously produced olefins as feedstock for petrochemical manufacturers—will be capable of processing a wide range of organic, pretreated feedstocks, including soybean and corn oil, meat tallow, and waste vegetable oils, among others, according to the operator’s website (OGJ Online, Sept. 12, 2022).
