CEO Dave Lamp is quoted on the August 3 2021 second quarter results call for CVR Refining:
“However, renewable diesel feedstock prices have increased considerably, particularly for refined, bleached and deodorized soybean oil, to a level where the economics do not make sense for us to complete the conversion at this time”
“We have started the process design engineering on the, which will take approximately 3 months to complete. We are also completing the process design of potential Phase 3 of developing a similar renewable diesel conversion project at Coffeyville”
As more RD plants are constructed in the U.S., we expect the feedstock market to react to increasing demand and begin pricing according to low carbon fuel standard credit values and freight economics,” Lamp said.
“We believe RD producers with feedstock contracts expirations coming up will be forced to give up some of the margin they currently enjoy. With the installation of a pretreating unit, we should have the flexibility to run any type of feedstock that we can access, and we are talking to a variety of feedstock suppliers that are in our backyard”
CVR has plans to convert the hydrocracker at its 74,500 BOPD Wynnewood to a renewable diesel unit.