The government of Newfoundland and Labrador has signed off an agreement to sell a majority stake in North Atlantic refinery Come by Chance to Cresta Fund Management. The agreement closes the sale of the interest to Cresta by prior owner Silverpeak. No financial terms were disclosed. The Come by Chance refinery will be rebranded as Braya Renewable Fuels and convert to renewable diesel and sustainable aviation fuel production.
Premier Furey Announces Agreement to Help Facilitate Investor Acquisition of North Atlantic Refinery
November 30, 2021
The Honourable Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Andrew Parsons, Minister of Industry, Energy and Technology, today announced that the Provincial Government has reached a new agreement with NARL Refining Limited Partnership and NARL Logistics to help facilitate Cresta Fund Management’s acquisition from Silverpeak of a majority interest in NARL Refining Limited Partnership. As a result, there are plans to re-brand the Come By Chance refinery facility as Braya Renewable Fuels and convert to renewable diesel and sustainable aviation fuel production.
Based on this agreement with the province, Silverpeak and Cresta Fund Management have reached their final agreements with respect to Cresta’s purchase into the Come By Chance Refinery.
On July 26, 2021, NARL Refining Limited Partnership and Cresta announced they had reached an agreement-in-principle for the purchase of the Come By Chance Refinery. According to Cresta, the first phase of the conversion would change Come By Chance refinery to a facility capable of initially producing 14,000 barrels of sustainable aviation fuel and renewable diesel daily by about mid-2022. A second phase will seek to double the capacity of the refinery.
A new 10-year environmental indemnity with the Provincial Government, which includes a cap on liability for the province which didn’t exist in the previous indemnity, will require the Come By Chance refinery site to:
Maintain employment levels at no less than 200 FTEs (Each FTE is equal to 2,080 person hours) of paid work in a 12-month period);
Maintain fuel supply to the island portion of Newfoundland and Labrador; and,
Maintain operations of the refinery.
This new 10-year environmental indemnity arrangement for the refinery site will replace the existing indemnity which is set to expire in November 2024, and enables Cresta to acquire a majority interest in the refinery.
In January 2021, the Provincial Government entered into a funding agreement with North Atlantic Refining Limited Partnership to keep the refinery in warm idle mode while the owner continued to pursue the sale of the refinery to Cresta Fund Management.
“Our government has worked with all stakeholders to ensure a long-term future for the North Atlantic Refinery. This agreement will help facilitate Cresta’s acquisition of a majority interest in the refinery with the aim of converting it to sustainable aviation fuel and renewable diesel production, securing employment for workers and a long term environmentally sustainable solution.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“It’s been a long year for the workers of the refinery who have been concerned about their future. This agreement supports the Cresta sustainable aviation fuel and renewable diesel project opportunity and investment. The conversion of the refinery to a renewable fuel facility is positive news for the province and would ensure a bright future for the refinery and its workers.
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
“Today, we celebrate an important milestone in our efforts to make one of the top five largest renewable diesel projects in the world a reality. Along with our agreement with Cresta, and the support of the government of Newfoundland and Labrador, and the more than 400 workers who are diligently engaged in construction at the refinery site, we are ensuring the long term sustainability of this facility for the province. In particular, Premier Furey and Minister Parsons have played a vital role in helping us sustain the facility during the last year and complete the transaction with Cresta. We would also like to thank Minister Seamus O’Regan and MP Churence Rogers who have provided invaluable support to help bring this vision to life.”
Kaushik Amin, Partner
We are pleased to make this transformative investment in the Come By Chance refinery 50 years following the facility’s original groundbreaking. We are also grateful to the existing team and the Newfoundland and Labrador government for the work they have done to facilitate our involvement. This refinery has a long history of safe and environmentally conscious operations, supported by a strong and experienced workforce. We’re proud to be associated with this new chapter for the refinery as it fully transitions from fossil fuels to the production of sustainable aviation fuel and renewable diesel, fuels that will be critical to decarbonizing the aviation and heavy transport sectors. We also applaud the concrete steps the Government of Canada is taking to meet its climate objectives, and we look forward to a collaboration to position Braya Renewable Fuels to play a vital role in boosting the country’s capacity to produce clean fuels.”
Chris Rozzell, Managing Partner
Cresta Fund Management
“This is great news for our membership, surrounding communities and for all of Newfoundland and Labrador. We were in turmoil over the last 18 months; however this gives our members a future and a livelihood for years. Our refinery is the future and Newfoundland and Labrador will be on the map as one of the first renewable diesel projects. There is a lot of potential for expansion after phase 1. The executive team and United Steelworkers District 6 would like to thank the membership, the Provincial Government for doing due diligence on this file, and Cresta and Silverpeak for getting the deal done to ensure this new future.
Glenn Nolan, President
United Steelworkers Local 9316, North Atlantic Refinery