American Refining Group – Bradford, PA

Eliminating Costly Power Disruptions and Enhancing Energy Resiliency for a Historic U.S. Refinery

Transforming refinery energy infrastructure into an onsite generation microgrid  – providing reliable power, usable thermal energy, and seamless resilience during grid disturbances.

American Refining Group (ARG) has partnered with Unison Energy to implement an onsite CHP-based microgrid at its Bradford, Pennsylvania refinery to address persistent power quality issues and eliminate costly operational disruptions.

The solution integrates onsite electricity generation and thermal energy recovery into a single, highly reliable system that supports continuous refining operations. 

One of the oldest continuously operating refineries in the United States, the facility has experienced unreliable utility service for more than a decade – where even momentary outages of one to two seconds can interrupt refining processes, create safety risks, and result in significant financial losses.

Client Goals: Improve power reliability, eliminate production losses, and enhance operational resiliency

• CHP-based microgrid expected to provide more than 90% of the facility’s total electrical load 
• CHP system expected to offest approximately 10% of site thermal load by pre-heating makeup water for existing steam boilers (pending final validation) 
• Project expected to eliminate millions of dollars in annual losses associated with recurring power outages 
• Designed to address persistent power quality issues and unreliable utility service experienced over the past decade 
• System engineered to mitigate momentary (1–2 second) outages that disrupt refining operations 
• Expected to improve worker safety by reducing unplanned shutdown events impacting ~340 employees 
• Configured with seamless islanding capability to maintain operations during grid disturbances 
• Designed to support continuous, high-reliability refining operations 

3-D Rendering of expected CHP plant

Project Details

American Refining Group is pursuing an onsite energy solution to address long-standing challenges with utility reliability and power quality. The Bradford refinery – originally founded in 1881 and recognized as the longest continuously operating specialty refinery in North America – requires stable, uninterrupted energy to support complex and continuous refining processes. However, for more than a decade, the facility has experienced insufficient utility reliability, with frequent disturbances and outages disrupting operations and creating safety concerns for the workforce.

Even brief power interruptions lasting only one to two seconds have historically been sufficient to interrupt refining processes, resulting in operational inefficiencies, equipment impacts, and significant financial losses. These conditions have made reliability the primary driver for the project.

To address these challenges, ARG has entered into an agreement with Unison Energy to develop an onsite CHP-based microgrid designed to provide highly reliable, efficient power. Under a long-term Energy-as-a-Service model, Unison will build, own, operate, and maintain the system, enabling ARG to secure a dependable energy supply without taking on operational complexity.

The CHP system is expected to generate the majority of the facility’s electricity – anticipated to exceed 90% of total load – while capturing waste heat from engine exhaust to improve thermal efficiency. This recovered heat is expected to be used to preheat boiler feedwater and support steam production for the refining process, reducing reliance on conventional boiler systems and improving overall energy utilization.

A key feature of the system is its resiliency through seamless islanding capability. The microgrid is designed to operate in parallel with the utility under normal conditions while mitigating minor disturbances such as voltage fluctuations. In the event of a major grid disruption, the system is expected to automatically disconnect and transition to island mode, maintaining continuous operation of critical refinery processes. Once utility service is restored, the system is designed to resynchronize and reconnect to the grid.

While Pennsylvania power prices are relatively low, the project is expected to deliver significant economic value by avoiding production losses and downtime rather than through traditional energy cost savings. The solution is intended to transform energy from a source of operational risk into a controlled and reliable asset.

From an environmental perspective, the CHP system is projected to reduce greenhouse gas emissions through improved fuel efficiency and waste heat recovery. These efficiency gains are expected to support qualification for federal and state incentives, including the 30% base Investment Tax Credit plus an additional 10% energy community credit.  The project is also expected to qualify for additional credits under Pennsylvania’s Alternative Energy Portfolio Standards Act.

The project also requires careful integration within an active refinery environment. Site constraints have necessitated relocation of the CHP system from its original planned location, along with demolition and subsurface analysis using ground-penetrating radar.

Once operational, the microgrid is expected to significantly reduce ARG’s exposure to grid-related disruptions while supporting continuous, high-reliability refining operations – protecting both the company’s workforce and its bottom line. This project demonstrates how industrial facilities can transition from utility-dependent energy supply to integrated onsite energy infrastructure, improving resilience, efficiency, and operational certainty.

“We’re proud to partner with Unison on this microgrid system, which we believe will enhance reliability, protect our workforce, and strengthen our financial performance. Even a momentary loss of power introduces operational risk and disrupts our ability to serve customers. This system will significantly reduce those risks, and we look forward to bringing it online.” Brian Zolkos, Chief Financial Officer of American Refining Group