Houston-based company to build largest new refinery in 50 years

Houston is one of the oil and energy capitals of the world, not only in terms of production, but most of the energy companies also call it home. From massive brands to lesser known brands all reside here. That includes Element Fuels, which is now set to build the largest new refinery in the United States since the 1970s.

The new plant would be located south of Brownsville and all construction permits have already been issued. The more than $3 billion project is expected to produce more than 160,000 barrels of finished gasoline, diesel and jet fuel per day. Currently, it appears that the new refinery could be operational, at least in its first phase, by 2027.

The construction of a new refinery constitutes a unique approach in the current dynamic in terms of green energy. But energy expert David Holt says this new facility will not only meet our massive demand, it might even please climate advocates.

“They intend to power most of the refinery with hydrogen, which would make it cleaner and meet all the environmental goals we need to meet,” he says.

The first phase of the operation alone will add 55,000 barrels per day, which is not negligible. This could help gas prices significantly, especially since President Biden, in his deluded wisdom, has twice decided to drain strategic oil reserves.

But even aside from helping the wallet, this new refinery would help provide a stable foundation for the reliability department.

“We’re seeing more and more fears…our energy is less affordable, and the other big fear is that energy will be less and less reliable and we’ll have more power outages,” he says. “Many political leaders have forgotten that we need to ensure energy reliability.”

Energy crisis situations are not uncommon in Houston. Anyone who survived the May 16, 2024 Derecho or Winter Storm Uri in 2021 can attest to this.

While Element Fuels is leading the way and could put an end to energy concerns to some extent, other states remain handcuffed to new green energy ideas that label refineries as bad. So while this refinery might help a little, we need other states to join the cause.

“Maybe this refinery, and the fact that it has permits and a good plan, could spur some expansion and new refineries… all that would mean progress,” he says.

El Campo-based Southern Rock Energy Partners also confirmed a shale oil refinery, similar to the Element Fuels refinery, but the company ultimately chose Oklahoma as the location.

The Element Fuels plant in Brownsville will process shale oil, which Holt says is another huge positive.