Plans for a $50 million upgrade of Murphy Oil's Superior refinery have been approved by the Wisconsin Department of Natural Resources.
The permit, issued Monday, allows the refinery to move ahead with building and operating a benzene splitter and to make modifications to meet new federal fuel regulations.
Two major goals are reductions of sulfur in diesel fuel and benzene in gasoline.
Under current regulations, Murphy Oil is operating under a waiver that allows it to produce higher sulfur diesel fuel until June 1, 2010. But since last year, vehicles running on diesel have been required to use technology that reduces emissions and requires low-sulfur diesel.
The refinery has been producing some lower-sulfur diesel fuel but has been limited in how much it can make, said Dave Podratz, refinery manager. He said the project will allow the refinery to increase production "rather dramatically."
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While the change would result in about five tons more in sulfur dioxide per year at the refinery, it's expected to remove 1,600 tons of sulfur from tailpipe emissions.
The other component will enable the refinery to reduce benzene in gasoline to meet new federal regulations taking effect in 2011.
Podratz estimates the projects will create about 50 full-time jobs over the yearlong construction period. He said work will get under way immediately.
Neil Baudhuin of the Wisconsin Department of Natural Resources said there were no issues raised during the public comment period. At a public hearing last week in Superior, leaders in the building trades and from the City Council voiced support for the project.
