Provincial government loans Braya Renewable Fuels millions to stay afloat
- The Government of Newfoundland and Labrador
- 3 hours ago
- 2 min read
The Newfoundland and Labrador provincial government in Canada announced Sept. 11 that it is providing financial support in the form of a repayable loan to Braya Renewable Fuels as it looks to secure its long-term future.
Braya’s commercial operations have been impacted by changes to tax credit programs in the U.S. market.
On Jan. 6, Braya initiated a temporary shutdown at the refinery, which lasted until June, when the company resumed operations.
Braya advised that this shutdown was due to lower-than-normal margins and market disruptions caused by the expiration of the U.S. $1-per-gallon blenders tax credit on Dec. 31.
The refinery has approximately 240 full-time employees, which the company retained during the temporary shutdown to maintain the facility and equipment in a ready-to-restart mode.
Braya requested a loan to support continued maintenance of the facility and equipment during this transitional period*.
The provincial government has responded with a CAD$25 million (USD$18 million) repayable loan to support maintaining the workforce and other direct facility costs.
“This facility is an important asset for the province,” said Premier John Hogan. “The on-site production of renewable diesel and sustainable aviation fuel offers proven alternatives to fossil fuels. Our financial support will assist in a return to operations and support the hardworking employees as they continue their jobs and the economic benefits to the region remain.”
Braya is undertaking work to advance facility upgrades, feedstock expansion and diversification to other markets.
The terms of the five-year term repayable funding support are similar to the support provided to the refinery in 2021.
The loan will offset up to CAD$2 million (USD$1.44 million) of Braya’s labor costs and up to CAD$1 million (USD$722,100) of eligible nonlabor costs in the province to a maximum monthly drawdown on the loan of CAD$3 million (USD$2.17 million).
“We are very appreciative of the government of Newfoundland and Labrador’s support for our workers during a challenging time for operations,” said Todd O’Malley, CEO of Braya Renewable Fuels. “We look forward to working with the government of Canada to evaluate further support required to level the playing field for its renewable producers such as Braya and are hopeful for a robust response to pair with this constructive approach from the province.”
The provincial government’s financial liability under the environmental-agreement indemnity provided to Braya will be reduced by the loan principal and interest outstanding for the period that the amounts are outstanding.
Braya Renewable Fuels was established to operate the refinery facility at Come By Chance, Newfoundland and Labrador, which is a repurposed crude-oil refinery that has been converted to renewable diesel production.
The ownership group includes Cresta Fund Management, North Atlantic Refining Corp., which is managed by Silverpeak, and Energy Capital Partners.
The facility began operations in February 2024 with a production capacity of up to 18,000 barrels (756,000 gallons) per day.
*Editor’s Note: In response to changes in U.S. biofuel tax policy, Canada is preparing to introduce a per-liter production credit and propose changes to its Clean Fuel Regulations.
