Holly Refinery Expansion

Fact Sheet

Holly's UCAIR pledge contains two voluntary emissions reduction measures:
- additional treatment of off gas from the Sulfur Recovery Unit
- reduction in allowable sulfur dioxide (SO2) emissions.
Holly proposes to treat the off gas from the current Sulfur Recovery Unit (SRU) Tail Gas Incinerator by redirecting it through a new Wet Gas Scrubber in another unit.
While wet gas scrubbers are required for the Fluid Catalytic Cracking Units (FCCUs), Holly is not currently required to send the off gas from the SRU through the scrubbers as part of their permit application.
Redirecting off gas ordinarily emitted directly into the air through additional pollution controls will reduce sulfur emissions by approximately 150 tons per year.
This emissions control technique was developed by refinery workers and consultants in support of Holly's UCAIR pledge.
By not installing previously permitted equipment and replacing higher sulfur Canadian crude with lower sulfur Basin black wax, sulfur dioxide (SO2) emissions from the refinery will decrease significantly.
Holly is requesting to reduce its allowable SO2 emissions by 500 tons per year.
By making this request, Holly has volunteered to lower the allowable emissions cap currently allowed under the State Implementation Plan (SIP).

Current production is 31,000 barrels per day (bpd).
Production will increase to 60,000 bpd with expansion.
Approximately 14,000 bpd of that increase will come from black and yellow waxy crudes originating in the Uintah Basin.
Division of Air Quality approved modifications to Holly's permit in 2007 to modernize its refinery and expand its processing capacity.
Holly anticipated it would be increasing its production of higher sulfur Canadian crudes in 2007. Holly's current proposal would revise some of these 2007 permitted changes so the refinery can instead process Uintah Basin lower sulfur crudes.

The Uintah Basin contains large reserves of black and yellow wax.
Waxy crudes are thick and viscous, unlike the more popular light, sweet crudes.
Because these thick crudes tend to solidify easily, they are difficult to transport through pipelines.
Waxy crudes are transported primarily in insulated trucks and must arrive at refineries within four to eight hours.
Proximity of the Holly refinery to the Uintah Basin makes it attractive for waxy crude processing.
Refineries can purchase these waxy crudes at a discount, making them more profitable sources of crude oil.
A ten-year agreement between Holly and Newfield Exploration to deliver 20,000 bpd to the refinery will provide Holly with a consistent supply of waxy crudes beginning in 2014.
Advancements in technology now make it possible to process these waxes in FCCUs, which break the wax's large molecules into smaller ones that can be transported more easily through pipelines.
Holly has an increased market for its petroleum products in Cedar City and Las Vegas due to the recent startup of the UNEV oil pipeline.

DAQ prepares and issues air quality permits to construct and operate sources of air pollution in Utah.
Holly submitted a Notice of Intent (NOI) for its Heavy Crude Processing Project on May 23, 2012.
The information in the Notice is currently undergoing an extensive review by the permitting branch at DAQ.
The public can also view this document on the DAQ web site during this initial review.
Prior to issuing an approval or disapproval, DAQ will provide the public with an opportunity to comment on Holly's proposal.
The Division, after considering comments received from the public, may choose to issue an Approval Order if the degree of pollution control for emissions, is at least best available control technology and the modifications meet applicable legal requirements and the requirements of the Utah SIP.