HF Sinclair begins renewable diesel production in Artesia, New Mexico

Photo: HF Sinclair Corp.

HF Sinclair Corp. has begun renewable diesel production at its Navajo Refinery in Artesia, New Mexico, CEO Mike Jennings said during an Aug. 8 call to discuss the company’s second-quarter financials.

The renewable diesel unit (RDU) is “just coming on-stream now,” Jennings said, adding that the unit will not hit its full run rate until the end of the third quarter.

The Artesia RDU is scaled to produce approximately 125 million gallons per year (mgy).

The company is processing refined, bleached and deodorized (RBD) feedstock at its Artesia RDU until the recently completed on-site pretreatment unit is fully utilized.

Jennings said once the pretreatment unit is operating at capacity, HF Sinclair expects to run no more than half RBD feedstock through the Artesia RDU.

Rich Voliva, executive vice president and chief financial officer, added that the pretreatment unit provides the option to run up to 60-plus percent non-RBD feeds in Artesia.

The company’s renewable diesel operations in Cheyenne, Wyoming, started up earlier this year. The RDU in Cheyenne is scaled at 90 mgy.

Both Cheyenne and Artesia renewable diesel projects were launched by HollyFrontier before Sinclair’s acquisition of the company was first announced in August 2021. Sinclair’s acquisition of HollyFrontier and Holly Energy Partners was completed this March.

Before the acquisition was completed, Sinclair was moving forward with a 100-plus mgy feedstock pretreatment unit at its 117 mgy renewable diesel refinery in Sinclair, Wyoming.

“With all of our previously announced renewables projects complete, we will continue to ramp up production of these assets as we expect to reach full production levels by the end of the third quarter,” Jennings said.