Braya Renewable Fuels is looking at a temporary shutdown of the plant thanks in part to a transition in tax credits in the United States.

The company just undertook a major refit of the old Come By Chance oil refinery to process renewable fuels.

In a letter to employees that was acquired by VOCM News, Vice President of Refining at Braya, Paul Burton, says the possible shutdown is driven by lower-than-normal margins and the expiration of the Blenders Tax Credit in the United States set to take effect December 31st.

The tax credit is supposed to be replaced by a different credit, says Burton, but until that happens, it is “not economically feasible to continue to process feedstock.”

Burton believes the situation will be resolved in the first quarter of 2025 and operations will resume “as soon as margins improve.”

The company’s permanent workforce will be maintained through the shutdown, according to Burton, and the layoff of temporary workers set for December 19th was planned months ago and was not driven by current events.

Burton says they are now developing and issuing “value added work plans” to put them in a better place for restart.

Meanwhile, Industry, Energy, and Technology Minister Andrew Parsons calls it “unfortunate” that the company is facing market challenges.

But he does say the province is pleased that they are maintaining employment for full-time staff.

Parsons says government is hopeful that the situation is a short-term challenge and that the markets will improve.