Holly Corp. announced Tuesday that its board of directors has approved refinery upgrade projects for Holly's Woods Cross refinery.

At the Woods Cross Refinery, the company will be adding a new 15,000 barrels per day hydrocracker, along with sulfur recovery and desalting equipment. The company said the cost of these additions is approximately $100 million.

The additions will expand the Woods Cross refinery's crude processing capabilities from 26,000 to 31,000 bpd while enabling the refinery to process up to 10,000 bpd of high-value, low-priced black wax crude oil and up to 5,000 bpd of low-priced heavy Canadian crude oils.

The hydrocracker is expected to provide increased capabilities to process significantly more black wax crude oils, which recently have been priced at substantial discounts to West Texas Intermediate crude oil while yielding substantially higher value products than the heavy Canadian discounted crudes that were a more significant part of the original plan, Holly said in a prepared statement.