Tidewater Renewables begins commissioning process at renewable diesel complex in British Columbia
Tidewater Renewables Ltd. announced April 13 initial unit commissioning at its renewable diesel complex and its financing solution to support the completion and start-up of the facility.
Following the previously announced capital cost increase, the corporation has significantly enhanced its funding capacity.
Tidewater Renewables is in discussion with its lenders to seek consents for increases to its lending facilities.
It has also received additional government support, in the form of an issuance of credits that will result in cash proceeds of CAD$43 million (USD$32.2 million).
The renewable diesel complex continues to progress on schedule and with no change to the previously announced gross capital cost estimate of CAD$342 million (USD$255.8 million).
Construction is currently estimated to be 93 percent complete with the last major piece of equipment now on site.
Construction-operations commissioning has begun on several units with final completion and start-up expected to begin within two months.
The majority of the dry commissioning of the utility packages is also complete.
In addition, the tank farm and rail systems are ready for operation.
According to Tidewater Renewables, the project continues to be a leader in safety performance with zero loss-time injuries throughout the life of the project to date.
To support the renewable diesel project, Tidewater Renewables has recently entered into firm credit-sales agreements that will result in CAD$43 million (USD$32.2 million) of proceeds net to the corporation.
Proceeds from the credit sales and the anticipated expansion of its lending facilities will primarily be employed to offset the previously disclosed capital-cost increases at the corporation’s renewable diesel complex.
Tidewater Renewables said it believes its enhanced liquidity will sufficiently fund the project through start-up while providing significant additional flexibility.
“The support from government and our current capital providers has been fundamental to the ongoing advancement and success of our [renewable diesel] complex, which will become Canada’s first renewable diesel facility,” said Rob Colcleugh, chairman and interim CEO. “This project will provide significant value to our stakeholders while reducing the carbon intensity of fuels used in British Columbia and Canada.”
Operating at its design capacity of approximately 45 million gallons per year, the renewable diesel complex is expected to generate annualized run rate EBITDA of between CAD$90 million (USD$67.3 million) and CAD$115 million (USD$86 million).