Hyundai Engineering wins contract for renewable diesel plant
South Korea’s Hyundai Engineering has signed a contract to provide front end engineering design (FEED) for a renewable diesel production facility from UrbanX, a renewable fuel startup, based in Long Beach, California, U.S.A.
The UrbanX Group plans to build the facility in Bakersfield, California, about 150 kilometers north of Los Angeles, that will produce renewable diesel using waste cooking oil and waste animal fats. Once completed, the plant is expected to be able to produce 5,300 barrels per day of renewable diesel.
Hyundai Engineering will be in charge of basic design for about nine months. The contract was signed in conjunction with the engineering, procurement and construction (EPC) contract. The value of the contract is estimated at around USD360 million, according to Korean IT Times.
The contract is significant as it is Hyundai Engineering’s first full-fledged move to expand its renewable energy business.
“The basic design of UrbanX renewable diesel refinery business is an achievement based on an active new market development strategy,” a company official was quoted by Korean IT Times. “We proved our company’s design capabilities at the global top-tier level through high-quality design. Based on this, we plan to actively participate in renewable energy projects in various fields that will be ordered from countries around the world in the future,” he added.