Vertex Energy, Inc. (NASDAQ: VTNR) has successfully completed the startup procedures for its renewable diesel conversion project at its Mobile, Alabama, refining facility. The company has entered into a new working capital facility with Macquarie Group’s Commodities and Global Markets business to secure feedstock for renewable diesel production. Commercial production of renewable diesel has now commenced at Vertex’s facility in Alabama.
After resolving repairs on the feedstock pumping system, the refinery achieved initial production on May 27, 2023. The project’s successful execution and transition from concept to production were attributed to the dedication and hard work of Vertex’s team and contractors. Vertex has signed a Renewable Supply and Offtake Agreement (RSOA) with Macquarie to acquire feedstock inventory and monetize renewable diesel and regulatory credits.
The RSOA is similar to the existing agreement in place with Macquarie for the conventional side of the business. The terms of the RSOA have been filed with the SEC in a Current Report on Form 8-K. Benjamin P. Cowart, CEO at Vertex, considers this a significant development milestone for the company and a historic accomplishment for the site and the state of Alabama.
The commercial sale of renewable diesel is scheduled to commence in June 2023, pending required EPA certifications. Vertex Energy Inc. is based in Houston and specializes in producing both renewable and conventional fuels. The company highlights that the achievement of required approvals and certifications for selling renewable diesel is a crucial factor for future success.
Vertex Energy acknowledges potential risks and uncertainties associated with changes in commodity and credits values, regulations, economic downturns, and more. The company cautions investors to consider these factors when evaluating future results and outcomes. Vertex Energy’s commitment to excellence, innovation, and sustainability drives its forward-looking approach to the energy industry.
Vertex Energy will continue to provide updates and take necessary actions in accordance with applicable laws and regulations. Vertex Energy’s solutions are designed with the future of the energy industry in mind.