The Honourable John Hogan, KC, Premier of Newfoundland and Labrador, and the Honourable Steve Crocker, Minister of Industry, Energy and Technology, today announced that the Provincial Government is providing financial support in the form of a repayable loan to Braya Renewable Fuels as it looks to secure its long-term future.
Braya’s commercial operations have been impacted by changes to tax credit programs in the U.S. market. On January 6, 2025, Braya initiated a temporary shutdown at the refinery which lasted until June 2025, when the company resumed operations. Braya advised that this shutdown was due to lower-than-normal margins and market disruptions caused by the expiration of the Federal U.S. Tax Credit for renewable diesel in December 2024.
The refinery has approximately 240 full-time employees, which the company retained during the temporary shutdown to maintain the facility and equipment in a ready-to-restart mode. Braya requested a loan to support continued maintenance of the facility and equipment during this transitional period.
The Provincial Government has responded with a $25 million repayable loan to support maintaining the workforce and other direct facility costs. Braya is undertaking work to advance facility upgrades, feedstock expansion and diversification to other markets.
The terms of the five-year term repayable funding support are similar to the support provided to the refinery in 2021. The loan will offset up to $2 million of Braya’s labour costs and up to $1 million of eligible non-labour costs in the province to a maximum monthly drawdown on the loan of $3 million. The Provincial Government’s financial liability under the Environmental Agreement indemnity provided to Braya will be reduced by the loan principal and interest outstanding for the period that the amounts are outstanding.
Braya Renewable Fuels was established to operate the refinery facility at Come By Chance, Newfoundland and Labrador, which is a repurposed crude oil refinery that has been converted to renewable diesel production. The ownership group includes Cresta Fund Management, North Atlantic Refining Corp., which is managed by Silverpeak, and Energy Capital Partners. The facility commenced operations in February 2024 with a production capacity of up to 18,000 barrels per day.
Quotes
“This facility is an important asset for the province. The on-site production of renewable diesel and sustainable aviation fuel offers proven alternatives to fossil fuels. Our financial support will assist in a return to operations and support the hardworking employees as they continue their jobs and the economic benefits to the region remain.”
Honourable John Hogan, KC
Premier of Newfoundland and Labrador
“Our government recognizes the importance of this refinery and the jobs it supplies directly and indirectly to the local communities, to the region, and to the entire province. This support will maintain employment as the company looks to secure new market opportunities.”
Honourable Steve Crocker
Minister of Industry, Energy and Technology
“We are very appreciative of the Government of Newfoundland and Labrador’s support for our workers during a challenging time for operations. We look forward to working with the Government of Canada to evaluate further support required to level the playing field for its renewable producers such as Braya and are hopeful for a robust response to pair with this constructive approach from the province.”
Todd O’Malley, CEO
Braya Renewable Fuels
“This is great news for USW, Braya, our workers, surrounding communities, contractors and the Newfoundland and Labrador economy. Our refinery will benefit from this loan which will help us to succeed in the renewable markets. USW would like to thank our government for working with Braya and USW in building a long future for our renewable refinery.”
Glenn Nolan, President
United Steelworkers Local 9316, Braya Renewables
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