Fidelis and Gron plan new renewable diesel plant for Baton Rouge

New York — Investment firm Fidelis Infrastructure Partners plans to build a greenfield renewable diesel plant -- the first phase of its plan to create low carbon industrial park near Baton Rouge, Louisiana -- as global demand for cleaner, environmentally-friendly fuels continues to grow.

The base phase of the project -- known as Gron Fuels -- will have the ability to produce 60,000 b/d of renewable diesel, using soybean, corn oil and animal fats as feedstock. The plant also will have an option to produce sustainable aviation jet fuel.

"This is an extremely environmentally friendly plant," Dan Shapiro, CEO and co-founder of Fidelis, told S&P Global Platts Dec. 17. Shapiro added that the plant will be designed to make every effort to reduce CO2 emissions as well as use green hydrogen for hydrotreating processes.

Given its location, Gron Fuels will be able to meet increased need for low carbon fuels to its customers worldwide including those in the US, Canada and Europe.

Global demand for biofuels is expected to outpace that of fossil fuel in 2021, according to Platts Analytics forecasts, up 12% from 2020 to 2.82 million b/d in 2021 with an implied global blending rate of 6.6% compared with the 6.3% in 2020. Renewable diesel is the fastest growing segment in biofuels.

Site advantages

The deepwater Port of Greater Baton Rouge on the Mississippi river provides easy tanker access to Gron's facility for waterborne takeaway capacity. Strategic partnerships with other transportation infrastructure including Colonial Pipeline and rail company, Genesee & Wyoming provide pipeline and rail offtake capacity.

The port itself has recently completed infrastructure upgrades, including a large grain terminal and a recently completed unit train terminal, enhancing the ability for feedstock supply.

Included in the design is a "robust pretreatment" facility, which gives Gron a wide latitude in feedstock choice, Shapiro said.

Houston-based Fidelis is an independent infrastructure fund firm focused on investments include high demand renewable energy and sustainability. Shapiro said the project is being designed from "the ground up" and is using proven technology in a closed-loop system to reduce emissions.

Gron Fuels already received its operating permit and engineering work is continuing ahead of the final investment decision on the project which is expected in 2021, Shapiro said, He declined to comment on when the plant would begin operations.