Sky Quarry Restarts Nevada’s Eagle Springs Refinery After Receiving Air Permit

Sky Quarry Inc. said it has restarted operations at its Eagle Springs Refinery near Ely, Nevada, after receiving an air permit from the Nevada Division of Environmental Protection, bringing the facility back online after an extended outage that weighed heavily on the company’s revenue this year.

The restart was disclosed Thursday in a company press release filed with the Securities and Exchange Commission. Sky Quarry said its wholly owned subsidiary, Foreland Refining Corporation, operates Eagle Springs and that the refinery has a stated nameplate capacity of about 5,000 barrels of crude oil per day.

Management said it completed approximately $300,000 of repairs and upgrades before restarting the plant. The work followed a TAR360 assessment commissioned in 2025. Sky Quarry also said it has roughly 15,000 barrels of crude oil inventory on hand and expects additional supply as operations progress.

Permit clears a major hurdle for the refinery

The air permit removes one of the key regulatory obstacles that had to be cleared before Eagle Springs could resume operations. Sky Quarry did not identify the permit number or provide the permit document in its announcement, but the Nevada Division of Environmental Protection’s public air-permitting tracker lists Foreland Refining Corporation’s Eagle Springs Refinery under facility identification number A0507. The tracker shows a new Class II air-quality operating permit application with an official submittal date of March 9, 2026.

Nevada’s air program requires operating permits for stationary sources that may emit regulated air contaminants. The state record establishes that Foreland had an active new-permit case in 2026, while Sky Quarry’s September 24 SEC filing is the source for the company’s statement that the permit has now been received and operations have restarted.

The distinction matters because the restart announcement goes beyond a permitting milestone. It represents the return to production of an asset that had been out of service through much of 2026. In its most recent quarterly filing, Sky Quarry said the refinery had shut down during the fourth quarter of 2025 in connection with a boiler repair and related work. Repairs had been completed by mid-August, but the company said at that time that operations had not yet restarted and remained subject to scale-up testing and state inspection.

The September update indicates that those preparations have advanced to operating status. Sky Quarry said its immediate focus is now on ramping Eagle Springs toward its full operating potential. The company described the refinery as Nevada’s only crude oil refinery, a characterization it has also used in its SEC filings.

Restart follows a sharp drop in refinery revenue

Getting Eagle Springs back into service is financially important for Sky Quarry because the outage had largely removed refinery sales from the company’s results. For the six months ended June 30, 2026, Sky Quarry reported net sales of just $383, down from about $10.9 million in the same period of 2025. The company attributed the decrease directly to the Eagle Springs outage.

Its June-quarter filing also showed negative operating cash flow of about $5.4 million for the first half of 2026 and an accumulated deficit of roughly $42.5 million as of June 30. Management said there was substantial doubt about the company’s ability to continue as a going concern and stated that additional financing would be needed to fund future capital spending and meet obligations unless operating cash flow improves.

That financial backdrop gives the refinery restart more weight than a routine maintenance return. Sky Quarry has identified resumed refinery operations as one of the actions intended to improve cash generation and help address its liquidity needs. The company has also been using equity and debt financing to support the business. During the first half of 2026, it reported about $12.5 million of net proceeds from at-the-market stock sales and about $897,000 from notes payable.

Eagle Springs produces diesel, vacuum gas oil, naphtha and liquid paving asphalt. Sky Quarry says the facility serves regional markets in the western United States and can process suitable crude supplied from nearby producing areas. The company acquired Foreland in September 2022, adding the refinery to a portfolio that also includes its development-stage PR Spring project in Utah.

Sky Quarry’s latest announcement does not provide a production rate for the restarted refinery, nor does it say that Eagle Springs is already operating at its 5,000-barrel-per-day nameplate capacity. The company instead framed the restart as the beginning of a ramp-up. That makes throughput, feedstock availability and sustained operating performance the more useful measures to watch from here.

Feedstock and sustained operations are the next tests

The roughly 15,000 barrels of crude inventory disclosed by Sky Quarry is equivalent to about three days of feedstock at the refinery’s stated full nameplate capacity. That simple comparison does not indicate how quickly the plant will run through the inventory because actual throughput during a restart can be materially below nameplate capacity, and the company said it expects additional crude supply as operations progress.

Management has previously said Eagle Springs’ economics depend primarily on refining margins, operating efficiency and access to competitively priced crude. The company has also identified feedstock procurement as a practical constraint on restarting and scaling the refinery. In its first-quarter filing, Sky Quarry said the boiler repair had been completed but that resumption still depended on obtaining feedstock. By the second-quarter filing, it said initial feedstock had been procured, with scale-up testing and state inspection still outstanding.

The restart therefore closes one part of the process without resolving every operating risk. Refinery utilization, the reliability of equipment after the prolonged outage, the pace of crude deliveries and the margins available on finished products will determine how much revenue Eagle Springs can contribute. Sky Quarry also continues to face the liquidity pressures disclosed in its latest quarterly report, so a sustained return to production is more consequential than simply achieving an initial restart.

The company said it intends to remain engaged with Nevada officials as the state considers fuel-supply and infrastructure initiatives. It also continues to support expanded oil exploration and production in Nevada, which management argues could create more in-state crude supply for Eagle Springs over time.

For now, the confirmed development is narrower: Sky Quarry says the Nevada air permit has been received, the required repair work has been completed, and Eagle Springs has restarted. The next operating disclosures will show whether the refinery can move from restart conditions into steady production and begin reversing the revenue impact of the 2025 and 2026 outage.