TIDEWATER MIDSTREAM AND INFRASTRUCTURE LTD. ANNOUNCES AN INITIATIVE AGREEMENT FOR FLUID CATALYTIC CRACKING CO-PROCESSING AT THE PRINCE GEORGE REFINERY

Executive Summary

• Tidewater Midstream and Infrastructure Ltd. entered into an FCC Initiative Agreement with the Government of British Columbia to receive BC LCFS Credits that will fund roughly 50% of renewable feedstock costs for FCC co‑processing at the Prince George Refinery (up to 300 bbl/d) from May 2026 – April 2028.
• The agreement complements an earlier Hydrotreater Initiative Agreement, together enabling up to 600 bbl/d of combined renewable gasoline and diesel production and an estimated annual CO₂ reduction of >60,000 t.
• The initiative supports Tidewater’s transition toward lower‑carbon fuels and reinforces the economic role of the Prince George Refinery in northern British Columbia.

Key Details

• Agreement Parties: Tidewater Midstream and Infrastructure Ltd. (“Tidewater”) and the Government of British Columbia (Ministry of Energy and Climate Solutions).
• Credit Mechanism: BC Low‑Carbon Fuel Standard (LCFS) Credits awarded under the FCC Initiative Agreement; credits to be sold on market.
• Funding Scope: Expected to cover ~50 % of renewable feedstock costs for FCC co‑processing unit, at rates up to 300 bbl/d, for the period May 2026 – April 2028.
• Related Hydrotreater Initiative: Previously announced hydrotreater co‑processing agreement will similarly fund ~50 % of feedstock costs for that unit (up to 300 bbl/d) during 2026‑2027.
• Combined Renewable Production Capacity: Up to 600 bbl/d of renewable gasoline and diesel (FCC + Hydrotreater).
• Environmental Impact: Projected reduction of >60,000 metric tonnes of CO₂ emissions annually versus conventional fuel production.
• Economic Impact: Enhances the value‑added nature of the Prince George Refinery and supports regional energy security and economic activity.
• CEO Quote (Jeremy Baines): Emphasized gratitude for provincial support and highlighted the refinery’s importance to British Columbia’s economy and energy transition.

Notable Quotes

“We are thankful for the support we have received from the Government of British Columbia, and the Ministry of Energy and Climate Solutions, as we work to successfully lead the energy transition. The Prince George Refinery is an important value‑added industrial operation that supports energy security in northern British Columbia and is a significant contributor to the economy of British Columbia.” – Jeremy Baines, CEO

Materiality Assessment: Material – Positive (the agreement provides substantial funding for renewable fuel production, impacts future cash flows, and aligns with strategic ESG objectives).