Tidewater Targets 2026 for Final Investment Decision on SAF Project

Tidewater Renewables on Aug. 14 announced its renewable diesel and renewable hydrogen (HDRD) complex in British Columbia operated at 72% of design capacity during the second quarter. The company continues to advance plans to add sustainable aviation fuel (SAF) capacity to the facility, with a final investment decision currently targeted for 2026.

Tidewater’s HDRD complex produced 2,164 barrels per day during the second quarter, accounting for 72% of nameplate capacity. Production was down when compared to the 2,925 barrels per day, or 98% capacity, achieved during the same period of 2024.

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The company primarily attributed the decrease to a minor fire incident that occurred on April 1 at the main renewable diesel process unit within the HDRD complex. The fire was promptly contained, with the affected area safely isolated and stabilized. Jeremy Baines, CEO of Tidewater, noted the event was “managed safely and repairs were completed using on-hand spare parts.” The facility resumed operations on April 14, and was operating at 2,850 barrels per day, or 95% nameplate capacity, in June, he added.

For the full year, Baines predicts renewable diesel production will average 2,200 to 2,400 barrels per day, which is inclusive of a scheduled turnaround during the third quarter.

Tidewater is continuing to advance plans for a 6,500-barrel-per-day SAF project in British Columbia. Front end engineering design (FEED) works are now complete. The company on Aug. 14 reported it has received approval from the Government of British Columbia to amend the existing initiative agreement to provide further support in the form of additional British Columbia Low Carbon Fuel Standard credits. According to Tidewater, these additional credits are specifically intended to fund the further work required to reach a final investment decision for the SAF project. Baines said a final investment decision is now expected to be made in 2026.

In its second quarter report, Tidewater credited recent modifications to the BC LCFS as one factor that has improved the company’s financial performance. Those changes, announced in February, boosted the renewable fuel requirement for diesel from 4% to 8% and mandated that eligible renewable fuels be produced within Canada.

Tidewater reported net income of $13 million for the second quarter, up 165% when compared to the same period of 2024. Adjusted EBITDA was $10.7 million, up 63%.