By Laura Sanicola

(Reuters) – CVR Energy, Carl Icahn’s subsidiary, is moving ahead with plans for renewable diesel production at Wynewood’s Oklahoma refinery, in the Spring 2022. The plan was halted earlier this year because of high prices for soybean oil. Executives said Tuesday.

The expansion of Low Carbon Fuel Standard Programs in America will be crucial to the production plans for its Coffeyville refinery at Kansas.

New York State and New Mexico, among others are considering adopting low-carbon fuel standards comparable to California’s. It offers incentives to produce greener fuels, by granting tradable credits that will reduce carbon intensity in their transport fuels.

David Lamp, chief executive of the company, stated Tuesday that they need at least two more to complete the Coffeyville Conversion.

CVR Energy plans to make 50 million gallons renewable fuel at Coffeyville. If regulatory conditions are changed, CVR Energy may also produce 25 million gallons sustainably aviation fuel.

Wynnewood plans to continue operating refined deodorized soybean oil, treated corn oil, until Wynewood’s pretreater unit can be up and running.

Prices for soybean oil are down from earlier in the year. Lamp attributes the decline in prices to increased demand for renewable diesel fuel projects.

Wynnewood Project economics are now in positive territory thanks to the combination of lower prices and additional subsidies.

Marathon Petroleum (NYSE) is CVR’s refining partner. Chevron Corp (NYSE 🙂 has recently announced joint ventures that will allow them to acquire soybean oil crushing plants to provide feedstocks and other resources for their future projects.

We believe that our site is an excellent one to build new crushers. Lamp added that we will look to see if there is an opportunity for oil companies to invest in such projects.