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HollyFrontier to build biodiesel plant

November 20/2019

MOSCOW (MRC) -- US refiner HollyFrontier Corp said it would build a biodiesel plant in New Mexico to lower costs related to blending renewable fuels and announced a USD1 billion share buyback program, as per Hydrocarbonprocessing.

Oil companies, including refiners, have to blend increasing amounts of renewable fuels with their petroleum products or purchase credits, known as Renewable Identification Numbers (RINs), to meet US biofuel requirements.

The companys RIN costs totaled USD184 million in 2018.

HollyFrontier plans to build the plant at its Artesia refinery to process soybean oil and other feedstocks into biodiesel, with production capacity of about 125 million gallons a year.

The plant, along with rail infrastructure and storage tanks, is expected to cost USD350 million and will be funded with cash on hand.

The project, which is expected to be completed in the first quarter of 2022, will generate an internal rate of return of between 20% and 30%, the company said.

The buyback replaces all existing share repurchase authorizations, of which there was about USD281 million remaining, the company said.

HollyFrontier had on Friday said it would bring in its former Chief Executive Officer Michael Jennings to replace George Damiris, who will retire at the end of the year.

As MRC informed before, a fire at HollyFrontier Corps 39,330 barrel-per-day (bpd) Woods Cross, Utah, refinery was extinguished by noon MST(1900 GMT), on 13 January 2019. HollyFrontier spokesman Craig Biery said then all employees and contractors were accounted for and safe at the refinery 10 miles (16 km) north of Salt Lake City.
Author:Margaret Volkova
Tags:Bioplastiki, crude and gaz condensate, USA.
Category:General News
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