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Hawaii Renewable Fuels Ramp-Up to Drive PARR's Long-Term Growth
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Key Takeaways
PARR's Hawaii Renewables produces on-specification renewable diesel and completes its first commercial sales.
PARR can produce up to 60% SAF or 90% renewable diesel, allowing flexibility to meet market demand.
The facility's ramp-up could diversify PARR's earnings and emerge as a meaningful long-term growth engine.
Par Pacific Holdings, Inc. (PARR - Free Report) is a leading refiner with 219,000 barrels per day in refining capacity and a diversified portfolio spanning refining, logistics, retail and a 46% interest in Laramie Energy. Par Pacific is expanding beyond conventional refining through Hawaii Renewables, which could become an important long-term growth driver. The facility is designed to produce 61 million gallons of renewable diesel, sustainable aviation fuel (SAF) and renewable naphtha annually using PARR’s existing infrastructure.
Hawaii Renewables produced on-specification renewable diesel in April 2026, marking an important operational milestone. Its flexibility to produce up to 60% SAF or 90% renewable diesel allows Par Pacific to adjust its product mix based on market demand. Production ramped during the second quarter, with June throughput reaching approximately 3,000 barrels per day before the plant-wide turnaround. PARR completed its first commercial renewable diesel sales, creating a pathway for future revenue growth.
The joint venture with Mitsubishi Corporation and ENEOS Corporation further strengthens the project’s prospects, with the partners contributing $100 million for a 36.5% interest. The joint venture provides feedstock-sourcing and customer-access capabilities across Asia-Pacific and California. Par Pacific has not yet provided mid-cycle earnings guidance for Renewables as it continues the commissioning and ramp-up process. As utilization and commercial sales increase during the ramp-up, Hawaii Renewables could emerge as a meaningful growth engine and diversify PARR’s earnings over the longer term.
Are VLO & CVX Producing Renewable Fuels?
Valero Energy Corporation (VLO - Free Report) and Chevron (CVX - Free Report) have exposure to renewable fuels through different approaches, with VLO emphasizing large-scale renewable diesel production and CVX pursuing a broader lower-carbon fuels strategy.
Valero's renewable fuels portfolio is anchored by its Diamond Green Diesel (DGD) joint venture, which has 1.2 billion gallons of annual renewable diesel capacity. In its latest earnings call, VLO reported a sharp improvement in its renewable diesel business, with operating income of $717 million, against a $79 million loss a year earlier, while sales volumes averaged 3.8 million gallons per day.
Chevron is strengthening its renewable-fuels portfolio as part of its broader lower-carbon strategy. CVX’s renewable-fuels portfolio is well-positioned to benefit from its existing infrastructure and conventional fuel technologies.
PARR’s Price Performance, Valuation & Estimates
Shares of Par Pacific have surged 167.9% over the past year compared with the industry’s 83.8% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, PARR trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 3.38X. This is below the broader industry average of 5.55X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PARR's second-quarter 2026 earnings has seen downward revisions over the past seven days. Meanwhile, estimates for third-quarter 2026 and full-year 2026 earnings have seen upward revisions.
View the Zacks #1 Rank List
Image: Bigstock
Hawaii Renewable Fuels Ramp-Up to Drive PARR's Long-Term Growth
Key Takeaways
Par Pacific Holdings, Inc. (PARR - Free Report) is a leading refiner with 219,000 barrels per day in refining capacity and a diversified portfolio spanning refining, logistics, retail and a 46% interest in Laramie Energy. Par Pacific is expanding beyond conventional refining through Hawaii Renewables, which could become an important long-term growth driver. The facility is designed to produce 61 million gallons of renewable diesel, sustainable aviation fuel (SAF) and renewable naphtha annually using PARR’s existing infrastructure.
Hawaii Renewables produced on-specification renewable diesel in April 2026, marking an important operational milestone. Its flexibility to produce up to 60% SAF or 90% renewable diesel allows Par Pacific to adjust its product mix based on market demand. Production ramped during the second quarter, with June throughput reaching approximately 3,000 barrels per day before the plant-wide turnaround. PARR completed its first commercial renewable diesel sales, creating a pathway for future revenue growth.
The joint venture with Mitsubishi Corporation and ENEOS Corporation further strengthens the project’s prospects, with the partners contributing $100 million for a 36.5% interest. The joint venture provides feedstock-sourcing and customer-access capabilities across Asia-Pacific and California. Par Pacific has not yet provided mid-cycle earnings guidance for Renewables as it continues the commissioning and ramp-up process. As utilization and commercial sales increase during the ramp-up, Hawaii Renewables could emerge as a meaningful growth engine and diversify PARR’s earnings over the longer term.
Are VLO & CVX Producing Renewable Fuels?
Valero Energy Corporation (VLO - Free Report) and Chevron (CVX - Free Report) have exposure to renewable fuels through different approaches, with VLO emphasizing large-scale renewable diesel production and CVX pursuing a broader lower-carbon fuels strategy.
Valero's renewable fuels portfolio is anchored by its Diamond Green Diesel (DGD) joint venture, which has 1.2 billion gallons of annual renewable diesel capacity. In its latest earnings call, VLO reported a sharp improvement in its renewable diesel business, with operating income of $717 million, against a $79 million loss a year earlier, while sales volumes averaged 3.8 million gallons per day.
Chevron is strengthening its renewable-fuels portfolio as part of its broader lower-carbon strategy. CVX’s renewable-fuels portfolio is well-positioned to benefit from its existing infrastructure and conventional fuel technologies.
PARR’s Price Performance, Valuation & Estimates
Shares of Par Pacific have surged 167.9% over the past year compared with the industry’s 83.8% growth.
From a valuation standpoint, PARR trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 3.38X. This is below the broader industry average of 5.55X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PARR's second-quarter 2026 earnings has seen downward revisions over the past seven days. Meanwhile, estimates for third-quarter 2026 and full-year 2026 earnings have seen upward revisions.
Image Source: Zacks Investment Research
PARR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.