Vertex Energy launches Mobile Refinery hydrocracker in conventional service

Vertex Energy, Inc. has successfully commenced the operation of the hydrocracker at its Mobile, Alabama refinery, marking a key milestone in the company’s plan to boost production of higher-value refined products. The hydrocracker is now operating in conventional service, using vacuum gas oil (VGO) as feedstock to generate products such as gasoline and diesel.

The project was completed on time and within budget, according to Vertex Energy, with no OSHA recordable injuries during the process. The hydrocracker reconversion followed the final processing of renewable feedstock inventories as part of a planned catalyst and maintenance turnaround.

While the hydrocracker is currently focused on conventional refined products, the Mobile refinery retains the ability to shift back to renewable fuels production, should market conditions change. This flexibility is in line with Vertex’s commitment to balancing conventional fuel production with renewable energy efforts to support the energy transition.

Vertex’s success with the hydrocracker is seen as a significant step in optimising its refinery operations and positioning the company for long-term growth and sustained performance.

In May 2021, Vertex Energy entered into an agreement to acquire the Mobile refinery, with a capacity of around 91,000 barrels per day (bpd), from Shell for approximately USD75 million. The acquisition closed in 2022. Shell sold the asset as part of its broader strategy to divest from certain downstream operations and focus on cleaner energy alternatives.

This acquisition was part of Vertex Energy’s strategic expansion into the production of renewable fuels, especially in the biofuels and renewable diesel sectors.

After the acquisition, Vertex Energy announced plans to convert part of the Mobile refinery’s operations to produce renewable diesel, which is derived from feedstocks such as animal fats and vegetable oils. The goal was to make the refinery a cornerstone in the company’s shift toward low-carbon fuels.

Vertex Energy has committed significant capital investments in converting a portion of the refinery to produce up to 10,000 bpd of renewable diesel by the end of 2023. This move aligns with global trends toward sustainability and cleaner energy.

Vertex Energy temporarily shifted back to processing crude oil at its Mobile, Alabama refinery due to challenges related to renewable feedstock supply and unfavorable market conditions for renewable diesel production.