The $1bn project has been approved by PBF’s Board of Directors, and the construction period will last about three years.

The project consists of a mild hydrocracker and hydrogen plant which will be built at its Delaware City Refinery.

Upon completion, the refinery will process streams from both the Delaware City refinery and PBF’s Paulsboro, New Jersey, refinery.

The mild hydrocracker will reduce the sulfur content by 99% in about 65,000 barrels per day of distillate production from 2,000 parts per million of sulfur to less than 15 parts per million of sulfur, resulting in a reduction of over 6,500 tons per year of sulfur dioxide emissions.

In addition, the mild hydrocracker will enable the refinery to process a heavier crude slate while producing a greater volume of clean transportation fuels with an emphasis on increasing distillate production.

The Delaware City refinery is a high-conversion heavy crude oil refinery with a processing capacity of 190,000 barrels per day, the company said.