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Husky Energy to spend more than $400M to rebuild Superior refinery

FILE - In this April 26, 2018, file image from video, smoke rises from the Husky Energy oil refinery after an explosion and fire at the plant in Superior, Wis. A hole in a valve was cited as the source of the explosion at the refinery last spring that injured 36 people and required the evacuation of a large part of the northwestern Wisconsin city. The latest findings of the U.S. Chemical Safety and Hazard Investigation Board were shared Wednesday, Dec. 12 at a town hall meeting in Superior. According to the update, erosion created a hole in the slide valve, allowing air to mix with hydrocarbons. (KSTP-TV via AP, File)

Smoke rises from the Husky Energy oil refinery on April 26, 2018, after an explosion and fire occurred at the plant in Superior. The disaster was the result of a hole in a valve. The explosion injured 36 people and required the evacuation of a large part of the northwestern Wisconsin city. The owner of the plant, Husky Energy, is now planning to spend $400 million to rebuild it. (KSTP-TV via AP, File)

SUPERIOR, Wis. (AP) — Husky Energy said Wednesday that it will spend more than $400 million to rebuild its oil refinery in Superior and will continue its use of a highly toxic chemical that raised fears in the community after an explosion at the refinery last April.

The blast injured 36 people and required the evacuation of much of Superior largely because of the presence of hydrogen fluoride, which can be hazardous to human health. The tank containing the chemical wasn’t damaged by the explosion, which was caused by a hole in a valve.

Rob Symonds, chief executive of Husky Energy, told Wisconsin Public Radio that company officials explored using alternatives to hydrogen fluoride, but there is no better option.

“The hydrogen fluoride alkylation unit, as it’s called, is fundamental to making gasoline,” Symonds said. “This is the gasoline that we all use in our cars today.”

Symonds said if they didn’t use the chemical, it would make the refinery “nonviable.”

The mayors of Superior and the adjacent city of Duluth, Minnesota, called on Husky Energy to remove hydrogen fluoride from its operations. Some local residents and groups, such as the including the Twin Ports Action Alliance, have also pushed for its removal

Ginger Juel, co-founder of the Twin Ports Action Alliance, said other methods can produce high-octane gasoline, such as sulfuric acid and ISOALKY technology.

Symonds said a conversion to sulfuric acid has never been done in the global refining industry and that such a transition would require taking out all existing equipment. He said it also would require the use of sulfuric acid.

“Put in context, today we have one truck a year that brings in hydrogen fluoride,” he said. “If we were to go to sulfuric acid, we would go to one truck a day.”

Construction is scheduled to begin this fall and Husky officials expects to resume operating the refinery, at least partly, in late 2020. Company officials said the refinery employs 200 workers and it expects to create 350 jobs during construction.

“We very early on decided we did want to rebuild,” Symonds said. “We wanted to stay in the Superior area and we wanted to continue to invest in the refinery.”

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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