CHS Inc., a leading farmer-owned cooperative in the US and a global energy, grains and foods company, will invest $406 million in its Laurel, Mont., refinery to boost efficiency and increase diesel production.The investments consist of related projects, some of which will begin this fall, and are expected to be completed in phases through 2019. Included in the $406-million investment are:

• A new hydrogen plant and crude unit modifications that will increase crude oil throughput and increase diesel production.

• Hyrocracker modifications that will increase diesel production, reduce production interruptions, and allow the refinery to process additional crudes.

Jay Debertin, CHS executive vice president and chief operating officer, Energy and Foods, said the additional diesel production will help its growing network of Cenex-branded marketers continue to capture growth opportunities resulting from robust diesel demand, particularly in the northern tier states.

With the addition of these projects, in recent years CHS will have invested nearly $2 billion in its operations based at Laurel and McPherson, Kan., including refinery ownership, production expansion and efficiencies; new and expanded terminals and storage; and an additional crude oil supply connection.

Debertin said when all current Montana and Kansas refinery projects are complete in 2019, total CHS refining capacity will increase by as much as 33% from 120,000 barrels per day to an estimated 160,000 barrels per day.