The first new refinery to be built in the United States in 50 years is coming to the Rio Grande Valley at the Port of Brownsville and local officials say it will make the region a hub for energy logistics and growth.

America First Refining with the financial backing of India-based Reliance Industries will construct the facility on the southside of port’s shipping channel. It will take up to seven years to complete with the project’s groundbreaking expected this month. When finished, the new refinery will produce light shale oil from the Permian Basin of West Texas. 

The facility will use hydrogen-powered systems and utilize new technology in what port director William Dietrich says, “will be the cleanest refinery ever built on the planet.”

“This is not yesterday’s refinery where you’re driving down the road and you see smokestacks up and down the highway,” Dietrich said at a mid-March press conference. “This will be super clean and use the best technology.”

Port board chairman Steve Guerra knows environmental concerns will be raised by the refinery’s operations.  He urged America First to host town hold meetings to address those issues with local residents. Dietrich added, “absolutely none at all,” when asked if South Padre Island and other coastal residents should fear negative environmental effects from the refinery.

“We will balance economic growth with environmental stewardship,” Dietrich said. 

‘Eyes Of World On Brownsville’

Environmental concerns aside, there is little doubt that the new refinery will have a far-reaching industrial impact on Brownsville and the RGV.

“The Port of Brownsville is on the map,” Dietrich said, a day after a social media post from President Trump announced the building of the new refinery. “The eyes of the world are on Brownsville and South Texas.”

The refinery project announcement came after 12 years of planning and project possibilities long discussed by port leaders. The site for a potential refinery at the port was decided upon years before last month’s announcement. In 2021, the site secured state permits for reduced nitrogen oxide emissions and enhanced pollution monitoring. Federal permitting was granted in 2024 and allowed for significant pre-construction work and site preparation.

“Shovel ready,” is how Dietrich described the America First refinery project.

The port director described the facility as a Texas project given that shale oil piped to Brownsville for refining will come from West Texas. The new refinery will produce 50 billion barrels of light shale oil per year and employ 500 permanent workers, Dietrich said. Thousands more will be employed during the construction phase of the project, which the port director says will cost $4 billion to build.

The refinery is expected to produce gasoline, diesel, and jet fuel. Dietrich did not detail where the finished products will be shipped, but industry reports predicted most of it will go to foreign markets. He lauded the infrastructure improvements done in previous years at the port, especially the deepening of the ship channel, and said America First’s selection of Brownsville marks a significant milestone for the city and the region.

“There is no doubt when someone of this caliber comes to the Port of Brownsville that they see in Brownsville and the Rio Grande Valley a great place to do business,” Dietrich said.

Trio Of Global Brands

The refinery will give the Brownsville area a trio of global brands operating within a few miles of each other and in close proximity to the port.

SpaceX’s Starbase on Boca Chica is about 15 miles from the port. The growing number of rocket launches is clearly visible from the port as the Starbase program proceeds with its aims to develop fully reusable space transportation systems. Even closer to the refinery will be the Rio Grande LNG complex, which is currently under construction. The LNG plant will produce liquefied natural gas and export much of it to European markets.

The Port of Brownsville covers 40,000 acres of land and is the nation’s largest land-owning port. The size-and-scope of the port enables it to house two huge facilities like Rio Grande LNG and America First Refining with relative ease. It’s a fact Dietrich highlighted in speaking of what it means to have a major refinery join the industrial base of the port and surrounding areas. 

“It’s an exciting day for the port and for the Valley,” he said at the mid-March press conference. “This announcement marks a major advancing chapter in our region’s economic and industrial future.”