CVR to move forward with Wynnewood conversion in early 2022

David Lamp, president and CEO of CVR Energy Inc. provided an update of the company’s planned projects to convert two existing petroleum refineries to renewable diesel production during a third quarter earnings call on Nov. 2.

According to Lamp, CVR is ready to complete the final steps required to convert the hydrocracker at its refinery in Wynnewood, Oklahoma, to renewable diesel service. The company in August announced plans to delay that conversion due to high feedstock prices. With the recent increase in crude oil and diesel prices, however, the HOBO spread has improved and the basis for refined bleached and deodorized soybean oil and corn oil has subsided, Lamp said. “Our current plan is to move the planned turnaround at Wynnewood to the spring of next year, during which will finish the hydrocracker conversion, with completion and startup of this renewable diesel unit expected in mid-April,” he added.

Lamp also noted CVR is progressing on the development of a pre-treater unit at the Wynnewood facility that would allow the plant to process a wider variety of lower carbon-intensity feedstocks. Long lead equipment for the pre-treater unit is on order, he said. The board has approved the pre-treater project, Lamp added, with completion expected in the fourth quarter of 2022.

The renewable diesel conversion of the company’s refinery in Coffeyville, Kansas, is also progressing. Lamp said engineering work is underway on a conversion project that would allow the facility to produce approximately 150 MMgy of renewable diesel, with an option for up to 25 MMgy of sustainable aviation fuel (SAF).

The planned renewable projects may also impact the CVR’s business structure. Lamp said the company is currently in the process of evaluating the possibility of breaking out the renewable business as a separate entity. He said that change could potentially provide the company with more opportunity to access a greater pool of investors and financing, and potentially position the company to take advantage of changes in laws that benefit renewables.