HollyFrontier's Cheyenne refinery ceases traditional refining.
HollyFrontier of the United States recently announced that its 52,000 barrel per day Cheyenne refinery in Wyoming has officially run its final barrel of crude for traditional refining purposes, ahead of the company’s planned repurposing of the facility to produce renewable diesel. HollyFrontier CEO Tim Go stated in the company’s second quarter results presentation that “We ran the last barrel of crude on August 3 and expect to run the off final intermediates and products inventory in August.”
Last month, HollyFrontier officially announced its plans to convert the long running Cheyenne refinery into a facility capable of converting a soybean oil-based feedstock into diesel fuel. This decision comes after processing margins fell due to pandemic driven decreases in fuel demand, and as maintenance costs become increasingly problematic. Cleaner fuel production is also a consideration here as companies work to comply with the approaching Renewable Fuel Standard program, which will require the blending of renewable fuel into transportation fuel.
HollyFrontier will reportedly spend approximately $150 million for this conversion to produce 90 million gallons annually after a startup in 2022.
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From the April 2018 issue of Hydrocarbon Processing