Evolve Transition Infrastructure LP, a publicly traded limited partnership focused on the acquisition, development and ownership of infrastructure critical to the transition of energy supply to lower carbon sources, and HOBO Renewable Diesel, LLC, a renewable fuel project developer, announced an agreement for Evolve to fund the construction of HOBO’s initial project that is expected to produce more than 120 million gallons of renewable fuels annually (9,300 barrels per day).
HOBO refers to the Heating Oil to Bean Oil spread which in part reflects the margin for converting waste feedstocks into renewable diesel for renewable fuel producers. HOBO Renewable Diesel expects to be in full production at this first site by Q4 2023.
Subject to the satisfaction of certain conditions, including HOBO securing a long-term strategic offtake agreement for the fuels project, Evolve will exclusively fund the development and construction of the fuels project and future renewable fuels projects that can produce renewable diesel and sustainable aviation fuel (SAF).
HOBO and Evolve are also considering incorporation of additional carbon reduction opportunities into the fuels project and future projects which the management teams believe could result in the production of some of the lowest carbon-intensity fuels in the US.
HOBO Renewable Diesel produces its fuel using Halder Topsoe’s Hydroflex technology. The resulting product meets and, in ways, surpasses current Ultra Low Sulfur Diesel (ASTM D-975) specifications.