Total renewable throughout during the quarter was 3,926 barrels per day, with product yield at 96.4%. Throughput during the first quarter of 2024 is expected to be in the range of 3,000 to 5,000 barrels per day, equating to capacity utilization of 38% to 63%, said Vertex Chief Financial Officer Chris Carlson during the company’s fourth quarter earnings call.
James Rhame, chief operating officer of Vertex, discussed the company’s phase II renewable diesel project, which aims to expand renewable diesel capacity to 14,000 barrels per day. The expansion remains on track to be complete during the first quarter of 2025, he said.
Vertex continued to advance its alternative feedstock supply strategy during the fourth quarter, successfully completing runs to support filings for proprietary carbon intensity (CI) scores of Low Carbon Fuel Standard pathways for tallow. The company also completed testing for soy, distillers corn oil and canola earlier in 2023 and has now successfully completed filings for each of these four feedstocks. Those filling will allow Vertex to receive increased credit value resulting from lower CI scores when compared to the default temporary values.
The company previously completed the required temporary files for LCFS credits at the default CI score. As previously indicated, Vertex expected the initial default LCFS credits to be applied to all volumes of renewable diesel produced during the second half of 2023. As anticipated, the company said it received an initial LCFS payment calculated using the temporary default CI score, resulting in a net payment of $9.6 million during the fourth quarter.
Doug Haugh, chief commercial officer at Vertex, said that with provisional LCFS pathways filed for soy, canola, tallow and distillers corn oil, Vertex has shifted its focus to completing additional 90-day trial runs of used cooking oil and poultry fat. The company has started aggregating the inventory needed to support those runs and expects to complete the runs during the second quarter.
Vertex’s renewable diesel segment reported a gross loss of $17.6 million for the fourth quarter. Overall, Vertex reported a net loss attributable to the company of $63.9 million, or 84 cents per fully diluted share.
