HollyFrontier to Build $350M Biofuel Plant in New Mexico
U.S. refiner HollyFrontier announced it is building a $350 million biodiesel plant in Artesia, New Mexico, to lower the associated costs of renewable fuel blending.
At the same time the company announced a $1 billion share buyback program, which will replace all existing share repurchase authorizations, of which there were $281 remaining.
Due to increasing blending requirements, HollyFrontier spent $184 million on Renewable Identification Numbers (RINs) last year. To offset this cost, the company is building this renewable plant at its Artesia refinery to process soybean oil and other biostocks.
The project, which together with storage tanks and rail infrastructure is estimated to cost $350 million, and which will have an annual capacity of 125 million gallons, is expected to be compete in the first quarter of 2022, and to generate an internal rate of return of between 20 and 30 percent.