Energy company Phillips 66 announced that it will reconfigure a California refinery to begin production of renewable fuels. The San Francisco Refinery in Rodeo, California, which currently produces fuels from crude oil, will be transformed to make fuels from used cooking oil, fats, greases and soybean oils, and will be the largest renewable fuel facility of its kind in the world.
Upon completion, the refinery project is expected to generate 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. Adding to the production of renewable fuel from a current in-development project, the plant would produce greater than 800 million gallons a year of renewable fuels.
Phillips 66 cited growing demand for renewable fuels as a key driver behind the project. The project is expected to deliver high returns by lowering plant operating costs, while enabling the the sale of high value products.
Greg Garland, Chairman and CEO of Phillips 66, said:
“Phillips 66 is taking a significant step with Rodeo Renewed to support demand for renewable fuels and help California meet its low carbon objectives. We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from Rodeo Renewed will be an important part of that mix. This project is a great example of how Phillips 66 is making investments in the energy transition that will create long term value for our shareholders.”
According to the company, the project scope includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable production of renewable fuels. The plant will bring in cooking oil, fats, greases and soybean oils from global sources and supply renewable fuels to the California market.
If the necessary approvals are received from Contra Costa County officials and the Bay Area Air Quality Management District, the plant is expected to begin renewable fuels production in 2024.
Phillips 66 also announced that it plans to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023, and to take associated crude oil pipelines out of service in phases starting in 2023.