The Canadian company said today that it agreed to license from Chevron a suite of hydroprocessing technology that helps upgrade waxy liquid feedstock into the plant’s finished products, which include API Group III+ base oils and low-sulfur diesel. The first plant would have capacity to produce 5,800 b/d of base oil, making it just the second U.S. source of significant amounts of Group III.

Entering the licensing agreement with Chevron is a second milestone for the project, coming a year after Cerilon awarded design and engineering contracts. Cerilon aims to capitalize on stranded natural gas reserves in North Dakota. The plants it wants to build would first convert natural gas into synthesis gas, then use Fischer-Tropsch processes to convert the syngas into the liquid waxy feed.

A Cerilon spokesperson said the company is working now on several fronts. The Williams Country project requires a number of state and county authorizations for siting and environmental impacts, including key permits from the North Dakota Department of Environmental Quality, the North Dakota Public Service Commission and the country. The company said it expects to have all permits by the end of this year.

It is also working to line up financing. Costs for the project are under review but are currently estimated at more than $3 billion for the first plant. “Financing for construction is progressing as planned,” said Julie Baron, senior specialist for brand strategy and communications. “Construction is expected to being in late 2025. However, this schedule may be revised as more detailed engineering and procurement information becomes available.”