MOSCOW (MRC) -- Carl Icahn's CVR Energy is moving forward with plans to produce renewable diesel at its Wynnewood, Oklahoma refinery in Spring of 2022 after halting the proposal earlier this yr due to high soybean oil prices, reported Reuters with reference to executives' statements on Tuesday.
However, plans to produce renewable fuels at its Coffeyville refinery in Kansas will depend on the expansion of low carbon fuel standard programs throughout America.
Various states such as New York and New Mexico are eying the adoption of low carbon fuel standards similar to California's landmark program. The program offers incentives for greener fuels by awarding tradable credits to producers that reduce the carbon intensity of their transportation fuels.
"We need a couple of those to happen to really have the Coffeyville conversion," said chief executive David Lamp on the company's third quarter earnings call on Tuesday.
CVR Energy is eying production of 50 MM gallons of renewable fuel at Coffeyville, potentially including 25 MM gallons of sustainable aviation fuel if regulatory conditions change. Until Wynnewood's pretreater unit is up and running the company plans to run refined deodorized and bleached soybean oil and treated corn oil.
CVR's refining peers Marathon Petroleum and Chevron Corp recently announced joint ventures that would allow them to own soybean oil crushers to secure feedstocks for their renewable projects.
As MRC reported earlier, in August 2021, Chevron and other partners said they are investing in a startup to build modular waste-to-green hydrogen and renewable synthetic fuel facilities in northern California with tentative plans to eventually grow worldwide. The USD20 million investment in Wyoming-based Raven SR is focused on technology to develop combustion-free, green hydrogen for transportation that is cleaner than so-called blue hydrogen derived from natural gas.
We remind that Chevron Phillips Chemical, a joint venture of Phillips 66 and Chevron, will make a final investment decision on a new cracker in far southeast Texas in 2022, followed by an FID in 2023 on an USD8 billion joint venture petrochemical complex along the US Gulf Coast in 2023.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.