Tyler-based KP Engineering said March 17 it was awarded a contract by Artesia Renewable Diesel, a subsidiary of HollyFrontier, for engineering, procurement and construction for the on-site portion of a previously announced renewable diesel production facility at HollyFrontier’s Navajo refinery in Artesia, N.M. The new unit will produce 9,000 barrels per day (125 million gallons per year) of renewable diesel produced from sustainable vegetable oils.
The on-site portion of the plant is based on HydroFlex technology by Haldor Topsoe. The RDU is scheduled to begin operations in 2022Q1. HollyFrontier said it expects total capital cost will be $350 million for the new RDU, which is part of HollyFrontier’s expansion into renewable fuels.