An agreement in principle has been reached to convert the Come By Chance oil refinery to a producer of renewable diesel and aviation fuel.
The plan is to produce renewable diesel and aviation fuel using feedstock such as cooking oils and animal fat.
The refinery will also be re-branded as Braya Renewable Fuels.
The new agreement will see Texas-based Cresta Fund Management acquire majority ownership in the refinery from Silverpeak, which remains a minority player.
The operation is expected to create at least 200 full-time, year-round jobs, which is about half the number of people employed at past peak operation of the refinery.
Premier Andrew Furey says some of the conversion work is already underway, adding there are over 400 full-time workers at the site now.
A significant part of the deal involves responsibility for environmental contamination on site, which will be worked out with the companies depending on specific timeframes.
Meanwhile, North Atlantic will still require the extra five cents a litre from the PUB to import fuel to the province, while continuing to store that fuel in tanks on site.
The deal itself also requires the new North Atlantic partnership to maintain promised jobs levels, ensure fuel supply to the province and keep the refinery in operation.
The new 10-year environmental indemnity with the Provincial Government, which includes a cap on liability for the province which didn’t exist in the previous indemnity, will require the Come By Chance refinery site to:
- Maintain employment levels at no less than 200 full time employees (Each FTE is equal to 2,080 person hours of paid work in a 12-month period);
- Maintain fuel supply to the island portion of Newfoundland and Labrador; and,
- Maintain operations of the refinery.
The Opposition say while the purchase of the refinery is good news, there are key issues left unaddressed.
The Shadow Minister for Industry, Energy, and Technology, Lloyd Parrott, says while they have been advocating for a deal since the beginning, they would like clarification on how many people will be employed on the site when it is operational. Parrott also says the five-cent tax on gas should be removed once and for all.
Area MHA, Jeff Dwyer, says a local benefits agreement needs to be put in place to ensure there are no missed opportunities for workers in the province, and the people of his district are supported.