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    Canadian midstreamer spins out renewables unit


Initial focus will be on biocrude fuels, with RNG and hydrogen also planned.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Energy Transition, Hydrogen, Renewables, Corporate, Investments, News By Country, Canada

Canadian midstreamer spins out renewables unit

Canadian midstream operator Tidewater Midstream and Infrastructure said July 21 it would spin out and take public via an initial public offering (IPO) a new subsidiary targeting the production of low carbon fuels.

Tidewater Renewables will acquire operating assets and a number of growth projects from Tidewater Midstream that will provide a platform for renewable natural gas (RNG), renewable hydrogen and renewable diesel developments, largely centred around Tidewater Midstream’s Prince George refinery in BC and its Brazeau River natural gas complex in west-central Alberta.

Initial growth projects will target renewable diesel at a canola co-processing facility at Prince George, expected online in Q4 2021, a wood-based biocrude facility, also utilising existing infrastructure at Prince George, expected online in Q2 2023, and a renewable diesel and renewable hydrogen complex, separate from but co-located at the refinery, expected online in Q1 2023.

Additional projects include initiatives in the RNG and renewable hydrogen business units and are in the planning stages.

Consideration to Tidewater Midstream for the acquired assets include C$180mn (US$143mn) in cash and a majority equity interest in Tidewater Renewables, the size of which will be determined by the ultimate size and price of the IPO, which is expected to close in August.

Tidewater Renewables will be led by Joel MacLeod as executive chair and CEO, Joel Vorra as president and CFO, and Krasen Chervenkov as executive vice president, business development and strategy. It will enter into a shared services agreement with Tidewater Midstream and will be governed by a majority-independent board of directors, which is expected to enter into a governance agreement with Tidewater Midstream.