MRC -- LyondellBasell Industries Holdings BV is proceeding with a potential plan to transition subsidiary Houston Refining LP's (HRL) soon-to-be-shuttered 268,000-b/d Houston full-conversion refinery into a hydrogen production site as part of the proposed US government-funded HyVelocity regional hydrogen hub, said the company.
Confirmation of LyondellBasell's possible participation in HyVelocity follows $1.2 bn of $7 bn in federal grants awarded by US President Biden's administration in mid-Oct 2023 to the project, which is sponsored by ExxonMobil Corp, Chevron Corp, Air Liquide SA, Mitsubishi Power Americas, AES Corp, Sempra Infrastructure, and Oersted AS. As development of the Houston refinery-to-hydrogen site remains ongoing, Vanacker said the company will continue to evaluate other projects in line with its circular and low-carbon solutions business involving reuse of the refinery's existing hydrotreaters, including: Using LyondellBasell's proprietary MoReTec advanced recycling technology to upgrade and purify mixed plastic waste into pyrolysis oil that can be used as feedstock for new plastic materials. Using MoReTec advanced recycling technology to upgrade and purify mixed plastic waste into pyrolysis gas that can be shipped via existing pipeline connections from the refinery to LyondellBasell's nearby olefins manufacturing complex in Channelview, TX, for use as feedstock in that site's steam crackers.
Revamping the refinery's existing hydrotreaters to process renewable-based feedstocks for production of renewable hydrocarbons that also could be transported to Channelview, TX, for use as feedstock to the site's steam crackers. With dedicated teams currently analyzing the various potential projects for the future use of the refinery, the company will proceed with normal routes for FID once those studies are completed, according to Vanacker. Previously slated for closure by end-2023, LyondellBasell said in May 2023 that it would delay ceasing operations at the Houston refinery until 'no later' than end-1Q 2025.
We remind, LyondellBasell Industries announced net income for the third quarter 2023 of $0.7 billion, or $2.29 per diluted share, said the company. During the quarter, the company recognized identified items of $57 million, net of tax, which impacted third quarter earnings by $0.17 per share. Third quarter 2023 EBITDA was $1.4 billion.