The company will invest $406m in a new hydrogen plant and crude unit modifications in order to boost crude oil throughput and increase diesel production as well as in modifications of hydrocracker to increase diesel production, reduce production interruptions, and allow the refinery to process additional crudes.
CHS Energy and Foods executive vice president and chief operating officer Jay Debertin said: "These projects, along with all of our ongoing major refining, distribution and storage investments, underscore our continued commitment to building the CHS energy platform."
All current Montana and Kansas refinery projects, which are slated for completion in 2019, will bring the total refining capacity of CHS by as much as 33% from 120,000 barrels per day to an estimated 160,000 barrels per day, Debertin said.
In recent years, CHS invested approximately $2bn in operations based at Laurel and McPherson, Kansas, including refinery ownership, production expansion and efficiencies; new and expanded terminals and storage; and an additional crude oil supply connection.
