Dallas-based Element Fuels Holdings said last week it has launched its plan to build the first all-new oil refinery in the U.S. in nearly 50 years. Element Fuels is raising funds for Phase I in south Texas that will allow the refinery to process 50,000 to 55,000 barrels per day of naphtha feedstock into gasoline. Estimated cost for Phase I is $1.2 billion. Element Fuels holds a Texas state permit authorizing construction. The refinery on 240 acres near Port of Brownsville eventually will process shale oil from fields in west and south Texas.
Element plans to build an on-site power plant that will be powered by hydrogen produced by the refinery. Excess electricity generated by the plant could be made available to ERCOT.
John Calce, co-CEO, said June 6, “A permit for a greenfield refinery of this size, scope and functionality has not been granted in the U.S. since the 1970s.”