[ad_1]
The HDRD Complex of Calgary-based Tidewater Renewables Ltd. has officially progressed to commercial operations after producing its first renewable diesel last month, making the company the first standalone producer of renewable diesel in Canada.
The Tidewater facility, co-located at the Prince George Refinery in British Columbia, uses renewable feedstocks, specifically used cooking oil, distillers corn oil, tallow, canola and soybean, to produce renewable diesel. The facility is currently producing approximately 1,500 barrels per day (bpd) of on-spec cold weather diesel, and Tidewater is targeting to boost production rates towards the facility’s design capacity of 3,000 bpd, the company said in a news release.
The project includes an over-built renewable hydrogen plant that will produce 10.0 million cubic feet per day of hydrogen as part of refinery operations. The project also utilizes Haldor Topsoe’s HydroFlex technology “which provides cost advantages and allows for maximum flexibility of feedstock use”, Tidewater noted.
Tidewater said that gross project costs are expected to increase by $7.4 million (CAD 10.2 million) due to increased man-hours resulting from the delay in commercial operations and the addition of incremental insulation and heat tracing. However, the project’s economics remain attractive, with payback expected within two to three years, the company reiterated.
Newly appointed Tidewater CEO Robert Colcleugh said, “The launching of the HDRD Complex’s commercial operations signifies a step change in the evolution of Tidewater Renewables’ business model. It also marks the arrival of Canada as one of the few countries in the world that produces renewable diesel. The completion of this project was not without challenges, but with unwavering support from the British Columbia Government, the City of Prince George, our capital providers, and our team’s relentless dedication, we got it done. With the completion of the HDRD Complex, Tidewater Renewables is dedicated to strengthening its financial position, reducing its debt, and progressing our strong pipeline of renewables projects”.
Meanwhile, Tidewater Renewables reported a net loss attributable to shareholders of $6.81 million (CAD 9.4 million) in the third quarter, inclusive of $9.13 million (CAD 12.6 million) of unrealized losses on derivative contracts. This compares with a net loss of $7.31 million (CAD 10.1) million in the prior-year period. The company’s revenue for the quarter was $17.53 million (CAD 24.2 million), compared to $14.27 million (CAD 19.7 million) in the same period in 2022, while adjusted EBITDA was $10.5 million (CAD 14.5 million), compared to the year-ago figure of $11.66 million (CAD 16.1 million).
Due to the HDRD Complex’s delay in commercial operations, Tidewater revised its second-half 2023 adjusted EBITDA estimate to be between $18.11 million and $25.35 million (CAD 25 million and CAD 35 million). The company said it continues to see strong industry fundamentals in North America, including robust prices for renewable fuels and strong demand for environmental credits, supported by escalating compliance requirements and voluntary environmental commitments.
Tidewater added that it was committed to streamlining the HDRD Complex’s operations, strengthening its financial position, repaying debt and progressing the development of its renewable natural gas (RNG) facility.
On November 8, Robert Colcleugh was appointed CEO of both Tidewater Renewables and Tidewater Midstream and Infrastructure Ltd. Colcleugh joined Tidewater Midstream’s board of directors in 2017 and was appointed interim CEO of both Tidewater Midstream and Tidewater Renewables in November 2022, according to the release.
To contact the author, email rocky.teodoro@rigzone.com
[ad_2]
Source link