Renewable fuels and waste oil rerefiner Vertex Energy Inc. settled its compliance obligations with the United States Environmental Protection Agency as part of Chapter 11 bankruptcy proceedings.
In June 2023, the EPA approved the company’s application to generate so-called renewable identification numbers – tradable credits that show compliance with the federal Renewable Fuel Standard – for each gallon of renewable fuel produced. A year later, Vertex filed for bankruptcy despite healthy gross profits over the previous two years. A supply glut and low market demand for renewable diesel made business unviable.
Despite ongoing financial restructuring, energy companies such as Vertex are still obliged to comply with environmental standards. Under the Clean Air Act and Renewable Fuel Standards, Vertex must either blend renewable fuels into its products or purchase credits, known as “renewable identification numbers” by March 31, 2025.
Once bankruptcy proceedings are over in early 2025, new ownership and recapitalization can go ahead.
Vertex operates a rerefinery in Louisiana that produces low-sulfur vacuum gas oil, condensate and asphalt extender. Marrero is the largest used motor oil refinery along the Gulf of Mexico. It has several waste automotive lubricant collection and processing facilities along the coast.