HOUSTON, April 27, 2023 – Par Pacific Holdings, Inc. (NYSE: PARR) (“Par Pacific” or the “Company”) today announced it plans to invest approximately $90 million to develop the state’s largest liquid renewable fuels manufacturing facility at its Kapolei refinery. The project relies on the Kapolei refinery’s highly experienced operating team, existing tank storage and related logistics, as well as available hydrogen from current refining operations, a key requirement for low-carbon renewable fuels production. As a result, this project is expected to be completed for less than $1.50 per gallon of annual operating capacity and is expected to be commissioned in 2025. The unit can produce up to 60% sustainable aviation fuel in a first step toward decarbonizing Hawaii’s significant air travel market.
“This project represents a key milestone in our renewable fuels strategy, which supplements our conventional fuels production in Hawaii. The expansion ensures that Par Hawaii, with its high-paying local manufacturing jobs, will be the leading supplier of liquid fuels to the Hawaii economy now and into the future,” said William Pate, Par Pacific’s Chief Executive Officer.
In total, the renewable fuel facility is expected to produce approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel (“SAF”), renewable naphtha and liquified petroleum gases (“LPGs”). If market conditions are supportive, yield can be shifted to over 90% renewable diesel. These renewable fuels lower greenhouse gas emissions while providing reliable electricity and transportation fuels to Hawaii consumers.
“Given this project’s feedstock requirements, the state is well positioned to drive an additional major economic benefit by creating a market for locally grown oil seed crops. The creative redevelopment of a portion of our refining system is an excellent example of our team’s technical strength to deliver renewable fuel solutions that supplement our existing operations. I am very proud of the team’s contributions and look forward to continuing our efforts to diversify and decarbonize energy sources for our community,” said Eric Wright, President of Par Hawaii, Par Pacific’s local subsidiary.
The announcement coincides with Par Pacific’s authorization from the U.S. Foreign-Trade Zone Board to use foreign-sourced vegetable oil to supplement locally-sourced renewable feedstocks. Par Hawaii is working with Hawaii-based Pono Pacific in the planting of camelina crops to test the suitability of that oil seed for state production. Par Pacific is committed to supporting the state agricultural sector in the development of oil seed crops to support decarbonization of the local economy.
In 2022, Par Pacific and Hawaiian Airlines, the largest air carrier in the state, announced a joint feasibility study to explore ways to make sustainable aviation fuel commercially viable. Today’s announcement marks a significant milestone in our shared efforts to produce renewable fuels in Hawaii. The companies look forward to engaging with stakeholders across the community to advance policies which enable the use of renewable fuels in Hawaii.
Par Pacific also is assessing development opportunities at the former Chevron refinery location in Kapolei, near its current operations, including projects that would further support the state’s efforts to decarbonize its electrical grid.
About Par Pacific
Par Pacific Holdings, Inc. (NYSE: PARR), headquartered in Houston, Texas, owns and operates market-leading energy, infrastructure and retail businesses. Par Pacific’s strategy is to acquire and develop businesses in logistically complex, niche markets. Par Pacific owns and operates one of the largest energy networks in Hawaii with 94,000 bpd of operating refining capacity, a logistics system supplying the major islands of the state and 90 retail locations. In the Pacific Northwest and the Rockies, Par Pacific owns and operates 61,000 bpd of combined refining capacity, related multimodal logistics systems and 31 retail locations. Par Pacific also owns 46% of Laramie Energy, LLC, a natural gas production company with operations and assets concentrated in Western Colorado.
This news release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, without limitation, statements about Par Pacific’s plans to invest in renewable fuels production. There can be no assurances that Par Pacific will be successful in its renewable fuels production efforts, which are subject to various risks and uncertainties. We cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this news release.
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