Tidewater coprocessing project ‘progressing,’ to be online by end of year
In its first-quarter financials, Tidewater Midstream and Infrastructure Ltd. said work to coprocess canola oil with petroleum crude to manufacture coprocessed renewable diesel at its Prince George Refinery in British Columbia, Canada, is progressing and on track to be operational late this year. The company first announced the project, in addition to a standalone renewable diesel unit, in March.
“Tidewater continues to evaluate multiple financing options for its renewable initiatives including its proposed [46 million gallon per year (mgy)] renewable diesel and renewable hydrogen facility for which the corporation has received approximately $100 million in BC government support for the total CAD$215 to CAD$235 million capital cost,” the company said.
It was revealed in April that Tidewater would leverage Haldor Topsoe technologies for its 46 mgy standalone project.
This past quarter represented Tidewater’s eighth consecutive quarter of adjusted EBITDA growth. “This performance continues to highlight the resiliency and stability of its integrated business model,” the company stated.
Adjusted EBITDA increased to CAD$51.1 million in the quarter compared to CAD$41.5 million in the first quarter of 2020, resulting in 23 percent growth. Adjusted EBITDA also increased by CAD$2.3 million as compared to the fourth quarter of 2020 resulting in 5 percent growth.
Net income attributable to shareholders was CAD$8.4 million for the first quarter compared to a net loss of CAD$38.1 million in the first quarter of 2020.
“This increase is the result of unrealized gains on derivative contracts and increased operating income driven predominantly by higher commodity prices,” Tidewater said, adding that the company “has a vital role to play in the long-term renewable energy transition in Canada and is currently developing clean fuels through its existing hydrogen and carbon capture assets, its ability to blend ethanol and renewable diesel and its current canola coprocessing project. Tidewater is also evaluating opportunities in various renewable energy initiatives including renewable diesel, coprocessing, renewable hydrogen, blue hydrogen, renewable natural gas, carbon capture and other renewable energy projects.”