Tidewater Renewables Faces Fire Incident at Renewable Diesel Refinery

On April 1, 2025, Tidewater Renewables Ltd. (TSX: LCFS) reported a minor fire incident at its renewable diesel refinery in Prince George, British Columbia. The incident, which occurred at approximately 9:00 a.m. (MST), was quickly extinguished, and the impacted area of the HDRD Complex was isolated and stabilized. Fortunately, all personnel were accounted for, and no injuries were reported. The company is currently investigating the incident in cooperation with regulatory authorities, and initial assessments suggest that the damage is minimal.

The fire incident at Tidewater Renewables' renewable diesel refinery has both short-term and long-term implications for the company's operational capabilities and financial performance. In the short term, the incident caused a temporary shutdown of the main renewable diesel process unit, disrupting production capacity and throughput. However, the company's preparedness and proactive measures are expected to mitigate the impact. Tidewater Renewables maintains a full suite of spare parts at the HDRD Complex, allowing for quick repairs and resumption of operations. Additionally, the company's robust product inventory levels ensure that the outage is not expected to have a material impact on its operating and financial results.



In the long term, the incident may lead to improvements in safety protocols and operational procedures, enhancing the company's operational capabilities. Tidewater Renewables' focus on continuous improvement and operational excellence, as highlighted in their first-quarter 2024 performance, suggests that the company is well-positioned to recover from this incident and maintain its market position as a leading Canadian renewable fuel producer.

The company's financial performance is expected to remain stable in the long term. Tidewater Renewables' first-quarter 2024 results were driven by progressive improvements in throughput and reliability at the HDRD Complex. The company averaged daily throughput of approximately 2,120 bbl/d, representing a 71% utilization rate. Initial operating results for April 2024 show continued improvement, with a utilization rate of approximately 95%. Tidewater Renewables expects the HDRD Complex to exceed a full-year 2024 utilization rate of 85%, representing an average daily throughput of 2,550 bbl/d.

The company's financial stability is further supported by its robust product inventory levels and its commitment to continuous improvement. Tidewater Renewables is working collaboratively with its lenders to extend its Senior Credit Facility, ensuring that the company has the necessary resources to invest in safety measures and incident response capabilities.



In conclusion, while the fire incident at Tidewater Renewables' renewable diesel refinery caused a temporary disruption, the company's preparedness and proactive measures are expected to mitigate the impact and ensure long-term operational and financial stability. Tidewater Renewables' focus on continuous improvement and operational excellence positions the company well to recover from this incident and maintain its market position as a leading Canadian renewable fuel producer.