Tidewater Midstream launches low-carbon fuel initiative

Executive Summary

• Tidewater Midstream and Infrastructure Ltd. has entered into an initiative agreement with the government of British Columbia to receive BC Low Carbon Fuel Standard (LCFS) credits.
• These credits are designed to finance approximately 50% of the cost of renewable feedstocks for the Fluid Catalytic Cracking (FCC) co-processing infrastructure at the Prince George refinery.
• The agreement supports the production of low-carbon renewable gasoline and diesel, contributing to the company's energy transition and expected to reduce carbon emissions by over 60,000 metric tonnes annually.

Key Details

• Agreement Type: Initiative agreement with the government of British Columbia.
• Subject: Fluid Catalytic Cracking (FCC) co-processing infrastructure at the Prince George refinery.
• Financial Mechanism: BC LCFS credits awarded under the agreement are expected to be sold to finance approximately 50% of the cost of renewable feedstocks.
• Operational Scope:
  • Covers the period from May 2026 to April 2028.
  • Production rates of up to 300 barrels per day for the FCC unit.
• Contextual Agreement: This is in addition to a previously announced hydrotreater co-processing initiative agreement, which similarly finances ~50% of renewable feedstock costs for 2026-2027 at rates up to 300 bbl/d.
• Aggregate Capacity: Combined FCC and hydrotreating co-processing infrastructure is expected to operate at rates up to 600 barrels per day in aggregate.
• Environmental Impact: Expected to reduce carbon emissions in British Columbia by over 60,000 metric tonnes of carbon dioxide annually compared to conventional fuel production.
• Strategic Goal: Supports the transition to lower carbon fuels and maintains the economic success of the Prince George refinery.

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," said Jeremy Baines, chief executive officer of Tidewater.