Renewable diesel/hydrogen project in line for $100M in carbon credits, Tidewater says

Renewable diesel/hydrogen project in line for $100M in carbon credits, Tidewater says

CALGARY — Tidewater Midstream and Infrastructure Ltd. says it expects to receive $100 million in provincial government low carbon fuel credits if it proceeds with a plan to build renewable diesel and renewable hydrogen facilities at its Prince George Refinery in B.C.

The Calgary-based company says the 3,000-barrel-per-day stand-alone complex would cost between $215 million and $235 million to build, which means the credits would equate to about 45 per cent of the cost.

It estimates that the asset could generate over $75 million of adjusted earnings in its first year of operation, which could come as early as 2023.

The facility would use 100 per cent renewable feedstock and would include a pre-treatment facility to provide flexibility on various renewable sources.

Tidewater says it is completing a $10-million canola co-processing project at the refinery expected to start operations in the fourth quarter of this year, and is planning a $10-million fluid catalytic cracking co-processing project for 2023. Both are also supported financially by the province, it said.

The company says it has hired CIBC Capital Markets and National Bank Financial as advisers to offer financing options to advance the renewable initiatives while keeping debt levels in check.

“We want to be clear that our goal is to deleverage Tidewater (while) financing these projects and to also maintain control and material ownership of these projects as they have strong return profiles,” said chairman and CEO Joel MacLeod on a conference call.

“Our renewable initiatives give our shareholders significant upside to increasing carbon tax, the new Canadian clean fuel standards (and) B.C. LCFS (Low Carbon Fuel Standard) compliance costs.”

Tidewater bought the Prince George light oil refinery from Husky Energy Inc. in 2019.

This report by The Canadian Press was first published March 11, 2021.

Companies in this story: (TSX:TWM)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

.
3-hour paid leave for Albertans to get vaccinated in the works

The UCP government intends to introduce legislation that will ensure working Albertans… Continue reading

Alberta completed 18,412 COVID-19 tests, as reported on Wednesday, for a test positivity rate of 9.5 per cent. (NIAID-RML via AP)
Highest daily count of 2021 so far: Alberta reports 1,699 COVID-19 cases

Variants now make up 59 per cent of Alberta’s active cases

Several cases of COVID-19 were reported among employees of stores at Bower Place Mall. (Photo by LANA MICHELIN/Advocate staff).
COVID-19 cases reported at Bower Place mall stores

AHS said five complaints were investigated since March, and required changes made

Edmonton Eskimos' Tanner Green, right, knocks the ball from Calgary Stampeders' Romar Morris during first half CFL football action in Calgary in 2019. Green has been waiting for nearly 17 months to get back on the field with the Edmonton Football Team. THE CANADIAN PRESS/Jeff McIntosh
Lacombe’s Tanner Green happy to finally see a CFL return to play date

CFL announced Wednesday league will return on Aug. 5

Westerner Park’s Exhibition Hall was used as a vaccination clinic on Wednesday. A steady stream of people came to get their COVID-19 shots either by appointment or as walk-ins. Photo by PAUL COWLEY/Advocate staff
No long lineups at walk-in vaccination site in Red Deer

A steady stream of people walked into Westerner Park on Wednesday to… Continue reading

The D.C. Defenders, right, line up against the Seattle Dragons for the opening kickoff of the opening football game of the XFL season, in Washington, Saturday, Feb. 8, 2020. Despite heated social media discussion in Canada, talks between the CFL and XFL haven't addressed what rules could be implemented in a potential partnership. THE CANADIAN PRESS/AP-Stephen Whyno
CFL commissioner Ambrosie says talks with XFL have centred around business, not rules

CFL commissioner Ambrosie says talks with XFL have centred around business, not rules

Former B.C. university rowing coach ‘deeply sorry’ after complaints

Former B.C. university rowing coach ‘deeply sorry’ after complaints

Canada's Brianne Jenner (19) and Russia's Anna Shibanova (70) battle for position in front of Russia goaltender Alexandrova Nadezhda (31) during third period IIHF Ice Hockey Women's World Championship preliminary round action in Plymouth, Mich., on Monday, April 3, 2017. The women's world hockey championship in Nova Scotia has been cancelled a second time because of COVID-19. THE CANADIAN PRESS/Jason Kryk
Women’s world hockey championship in Nova Scotia cancelled again

Women’s world hockey championship in Nova Scotia cancelled again

Canada's Meagan Duhamel and Eric Radford compete in the pairs figure skating free program at the Pyeonchang Winter Olympics Thursday, February 15, 2018 in Gangneung, South Korea. THE CANADIAN PRESS/Paul Chiasson
“Once in a lifetime opportunity” – Radford, James are Canada’s newest pairs team

“Once in a lifetime opportunity” - Radford, James are Canada’s newest pairs team

A school bag and a lunch bag are seen in the schoolyard at Bancroft Elementary School as students go back to school in Montreal on Monday, Aug. 31, 2020. Alberta Education Minister Adriana LaGrange says the organization representing the province's teachers is playing politics with a proposed new kindergarten to Grade 6 curriculum and isn’t sincere about a real bridge-building effort. THE CANADIAN PRESS/Paul Chiasson
Alberta teachers and education minister swap accusations of politicizing curriculum

Alberta teachers and education minister swap accusations of politicizing curriculum

Alberta Premier Jason Kenney shakes hands with Jason Nixon, minister of Environment and Parks after being sworn into office, in Edmonton on Tuesday April 30, 2019. Town council from the largest municipality in Nixon's constituency is concerned over the province's consultation plans for open-pit coal mining in the Rocky Mountains. THE CANADIAN PRESS/Jason Franson
Council in Alberta environment minister’s town wants better coal consultation

Council in Alberta environment minister’s town wants better coal consultation

In this photo released by the official website of the office of the Iranian Presidency, President Hassan Rouhani speaks in a cabinet meeting in Tehran, Iran, Wednesday, April 14, 2021. Iran's president on Wednesday called Tehran's decision to enrich uranium up to 60% after saboteurs attacked a nuclear site "an answer to your evilness," linking the incident to ongoing talks in Vienna over its tattered nuclear deal with world powers. (Iranian Presidency Office via AP)
US outlines possible sanctions relief for Iran in nuke talks

US outlines possible sanctions relief for Iran in nuke talks

Activists hope Chauvin convictions are start to real change

Activists hope Chauvin convictions are start to real change

Most Read