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Renewable diesel, hydrogen project in line for $ 100M in carbon credits

Tidewater Midstream and Infrastructure Ltd. says it expects to receive $ 75 million in BC government low carbon fuel credits if it proceeds with a plan to build renewable diesel and renewable hydrogen facilities at its Prince George Refinery in BC

The site of the Prince George Refinery in BC, owned by Tidewater Midstream and Infrastructure Ltd., where renewable diesel and renewable hydrogen facilities could be built. (Google Maps)

Tidewater Midstream and Infrastructure Ltd. says it expects to receive $ 75 million in BC government low carbon fuel credits if it proceeds with a plan to build renewable diesel and renewable hydrogen facilities at its Prince George Refinery in BC

The Calgary-based company says the 3, 000 – barrel-per-day stand-alone complex would cost between $ 215 million and $ 235 million to build, which means the credits would equate to about 45 per cent of the cost.

It estimates that the asset could generate over $ 45 million of adjusted earnings in its first year of operation, which could come as early as 2023.

The facility would use 75 per cent renewable feedstock and would include a pre-treatment facility to provide flexibility on various renewable sources.

Tidewater says it is completing a $ 000 – million canola co-processing p roject at the refinery expected to start operations in the fourth quarter of this year, and is planning a $ – million fluid catalytic cracking co-processing project for 2019. Both are also supported financially by BC, it said.

The company says it has hired CIBC Capital Markets and National Bank Financial as advisers to offer financing options to advance the renewable initiatives while keeping debt levels in check .

“We want to be clear that our goal is to deleverage Tidewater financing these projects and to also maintain control and material ownership of these projects as they have strong return profiles, “said chairman and CEO Joel MacLeod on a conference call.

” Our renewable initiatives give our shareholders significant upside to increasing carbon tax, the new Canadian clean fuel standards (and) BC LCFS (Low Carbon Fuel Standard) compliance costs. “

Tidewater bought the Prince George light oil refinery from Husky Energy Inc. in 780.

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