U.S. regulators will require a new Clean Air Act permit for a troubled oil refinery in the U.S. Virgin Islands, which could cost its owners hundreds of millions of dollars and take three years or more to obtain, the Environmental Protection Agency said on Thursday.
The idled St. Croix refinery, formerly the largest in the Western Hemisphere, was expected to boost overall supply in the Caribbean, a key transit point for petroleum shipments, but was shut after just a few months of operation.
The refinery was sold for $62 million in December 2021 to West Indies Petroleum and Port Hamilton Refining and Transportation, following the bankruptcy of its former private equity owners.the EPA said last month An August 2022 fire within the petroleum coke conveyor loading system burned for two weeks, prompting the inspection.
A PSD permit limits emissions to levels that would result from the best available air pollution control technology, which the EPA said would likely result in significant reductions of emissions of nitrogen oxides and volatile organic chemicals, and reductions in sulfur dioxide, hydrogen sulfide, carbon monoxide and particulate matter at the facility.
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