In the United States (US), Continental Refining Company LLC (CRC), a subsidiary of Hemisphere Limited LLC has announced that it is moving forward with plans to invest an additional US$20 million to acquire and install a soybean crushing, biodiesel refining, and blending facility at the current idled CRC oil refinery in Somerset, Kentucky (KY).
According to a recent statement, CRC has completed its evaluation of the project feasibility and is currently making progress with detailed design, equipment procurement, permitting, and construction of a soybean processing facility, biodiesel plant, and a fuels terminal.
Open new regional markets
The ability to produce biofuels and soy-based products in Somerset will open new markets while providing farmers, CRC’s customers, vendors, investors, and the community a solid AgriTech business opportunity that provides a positive economic impact for the entire region.
CRC products will include soy meal, soy oil, soy hulls, biodiesel (B6 – B100 blends), Ultra Low Sulfur Diesel (ULSD), crude glycerin, biodiesel, gasoline, and other products. CRC’s transformational concept has been well received by the local, regional, and state community as well as suppliers of raw materials and customers of the CRC products.
CRC has garnered the support of Pulaski, Wayne, and Adair County Agriculture Development Councils.
Local entrepreneur and Hemisphere Limited CEO Demetrios Haseotes purchased the refinery in 2011, prior to idling it in early 2018 for capital upgrades to improve the facility’s 5 500 barrels-per-day crude oil refining capabilities and business reassessment.
Haseotes has already invested around US$60 million since acquiring the plant, and will now shift focus to soybeans as the future of diesel energy production and additives at the Continental Refining Company refinery.
The Southcentral and Southeastern regions of Kentucky have industries and institutions that rely on diesel fuels, and because Kentucky is a leader in the nation for soybean production, the region also has the raw materials and technology to make biodiesel at a scale that reflects the local and regional demand. We have consulted with local, progressive soybean producers, taken their input and they are very encouraged about the project, said Demetrios Haseotes.
Retrofit underway
The conversion of Continental’s Somerset facility is already well underway. CRC has initiated the permitting process with the Kentucky Division of Environmental Protection (KDEP). The biodiesel plant has been procured and engineering services are currently being performed to develop the plans necessary for installation.
The anticipated startup is in Q4 of 2021, along with a new fuels terminal that is currently being designed with equipment procurement and installation to follow. The soybean processing equipment is deep into its design phase with equipment procurement and installation soon to follow, and the anticipated startup is in Q1 of 2022.
Demetrios Haseotes expects to receive and begin processing soybeans by January 2022. The revamped plant would create up to 20 new jobs with an annual payroll of over US$1.2 million. To date, Continental Refining Company has hired five of the needed 20 employees with plans to hire six more by summer 2021, and the rest coming on board in Q4 of 2021.
We look forward to investing in the future of energy production that actually creates beneficial byproducts we can, in turn, sell, like high-protein fiber meal for poultry and livestock. Our new operation will provide energy for animals and machines, the perfect complement to our regional economy, ended Demetrios Haseotes.
