Continental Refining Company (CRC) plans to double biodiesel production capacity at its Somerset, Kentucky, facility, even as its soybean processing operations remain shut following a fire in July, reported Chem Analyst.
The company began the expansion in August and expects to complete the project by November 15. The increased capacity is aimed at strengthening its position in the renewable fuels market amid growing demand for biodiesel.
The fire broke out on July 5 at the soybean processing section of CRC’s 77-acre agricultural and petroleum industrial complex. The facility was already idle at the time and has remained offline since the incident. CRC has decided to keep the unit closed for the current season while evaluating repair and restart options, as well as alternative arrangements for its soybean business.
The company is also looking for a regional partner to operate its grain elevator. However, CRC said the incident has not affected its biodiesel production or fuel terminal operations, which continue to function normally.
Alongside the capacity expansion, CRC is installing a rail spur connecting the Somerset complex to the Norfolk Southern main line. The link is expected to improve the movement of biofuels and make distribution across the United States more efficient.
The expansion follows double-digit growth in CRC’s biodiesel business, supported by a wider product portfolio and stronger regional market penetration. In September, the company introduced P51, a higher-blend biodiesel product that has recorded encouraging initial results in regional markets.
P51 underwent several years of testing across the equipment fleet of White Oil Company, a CRC affiliate, before its commercial launch. The trials provided performance data under real-world operating conditions.
CRC plans to continue producing biodiesel from soybean oil and other vegetable oils while expanding its agriculture-based fuel business into new markets. Its strategy also focuses on supporting domestic agriculture and promoting locally produced fuel alternatives.
The Somerset complex combines soybean crushing, biodiesel manufacturing, fuel blending and grain handling operations. While the future of its soybean processing unit remains uncertain, the planned biodiesel expansion and improved rail connectivity are expected to enhance production flexibility and distribution capabilities.
The higher production capacity could increase the availability of biodiesel and higher-blend renewable fuels, while potentially supporting demand for soybean oil and other vegetable oil feedstocks. However, the impact on feedstock markets will depend on actual production levels and broader supply-demand conditions.
