Vertex Energy Inc. has started commercial sales of renewable diesel from the recently completed first phase of its renewable diesel conversion project at subsidiary Vertex Refining Alabama LLC’s 75,000-b/d refining and petrochemical complex in Mobile, Ala. (OGJ Online, Sept. 12, 2022).
In late June, Vertex Refining Alabama sold its first batch of about 110, 000 bbl of renewable diesel from the Mobile plant to Idemitsu Apollo Renewable Corp., the California-based subsidiary of Japan’s Idemitsu Kosan Co. Ltd., Vertex said.
The transaction follows a February 2022 master offtake agreement with Vertex under which Idemitsu Apollo Renewable committed to purchasing all of the Mobile refinery’s renewable diesel production up to a maximum volume of 14,000 b/d (OGJ Online, May 1, 2023).
In addition to announcing the first renewable diesel shipment under the supply agreement, Vertex said it expected renewable diesel production volumes from the Mobile plant would increase as projected to about 8,000 b/d during third-quarter 2023 from a previous output rate of 7,700 b/d.
"Operationally, the [Mobile] renewable diesel plant continues to run well, and our team continues to safely and reliably deliver on incremental production targets as planned,” said James Rhame, Vertex’s chief operations officer of Vertex.
With a planned production capacity of 8,000-10,000 b/d, the first $115-million phase of the plant—which involved the conversion of a standalone hydrocracking unit at the refinery and reached mechanical completion on Mar. 31—produces renewable diesel from a primary feedstock of locally sourced soybean oil.
The plant’s full design will enable production of renewable diesel from a range of organic, pretreated feedstocks that—alongside soybean oil—includes corn oil, meat tallow, and waste vegetable oils, among others, much of which Vertex plans to secure from local farmers and suppliers, according to the operator.
Currently under way, a second phase of the Mobile renewable diesel project will involve the addition of a new hydrogen plant that will expand renewable diesel production to 14,000 b/d as part of Vertex’s strategy to foster a stable transition to renewable energy sources in line with the global energy transition while continuing to support the site’s existing infrastructure for production of conventional fuels.
Slated for mechanical completion by yearend 2023, Phase 2 of the project is due to ramp up to full production capacity by early 2024, Vertex said in a May 2023 presentation to investors.
