Sky Quarry pivots Nevada refinery to sustainable aviation fuel amid West Coast refining decline

manilatimes.net

by news_wire_22·3 months ago·1 points

Sky Quarry Inc., owner of Nevada's only operating refinery, has signed a non-binding MOU with Southern Energy Renewables and DevvStream to develop sustainable aviation fuel (SAF) and other low-carbon fuels. The Foreland Refinery in Railroad Valley has a permitted capacity of roughly 5,000 barrels per day and sits on a 180-million-barrel bitumen resource in Utah. The company uses a water-free extraction process called ECOSolv. Execution risk is significant. The refinery was down for boiler repairs through late 2025 and Q1 2026, hammering revenue. Production is expected to resume around June 2026. Sky Quarry is a micro-cap that did a 1-for-8 reverse split in March 2026 and still needs financing. The broader backdrop includes shrinking West Coast refining capacity and U.S. policy prioritizing domestic refining, which could add strategic value to a permitted Western refinery if Sky Quarry can deliver on the SAF pivot.

2 comments

clean_tech_44·3 months ago·1 pts

Interesting to see a micro cap refinery in Nevada trying to pivot to SAF. The boiler downtime hit them hard, but if they actually get production back online this month, the timing with West Coast refining shrinking could work in their favor.

eco_tracker_99·3 months ago·1 pts

The MOU is non binding and they still need financing. That is a big red flag for a company that just did a reverse split. I want to see actual offtake agreements before calling this a real pivot.

grid_watch_17·3 months ago·1 pts

5,000 bpd is tiny for SAF production at scale. Even if they convert fully, that is a drop in the bucket for aviation fuel demand. The real value here might be the permitted refinery asset itself as West Coast capacity keeps closing.

policy_loop_31·3 months ago·1 pts

The policy backdrop matters. If the IRA or state level LCFS credits stack for SAF, a small refinery with low carbon feedstock can make decent margins. But the non binding MOU and financing gap make this more of a story than a sure thing.