Tesoro launches plan to support development of renewable biocrude for its refineries
January 20 2016 - 08:00AM
SAN ANTONIO, Texas, January 20,
2016 - Tesoro Corporation (NYSE: TSO) today announced its plan
to foster the development of biocrude made from renewable biomass,
which can be co-processed in its existing refineries, along with
traditional crude oil.
Converting renewable biomass into biocrude is
expected to enable existing refining assets to produce less
carbon-intensive fuels at a significantly lower capital and
operating cost than competing technologies. This approach could
lower Tesoro's compliance costs with the federal renewable fuel
standard and California's low carbon fuel standard by generating
credits, while producing less carbon-intensive fuels which are
fully compatible with the nation's existing fuel infrastructure as
well as current vehicle fleet warranties.
In order to support the development of biocrude,
Tesoro is working collaboratively with several renewable energy
companies to advance biomass-to-fuels technology,
including:
-
Fulcrum BioEnergy, Inc.:
Fulcrum plans to supply biocrude produced from municipal solid
waste to Tesoro Refining & Marketing Company LLC ("TRMC") to
process as a feedstock at its Martinez, California Refinery. An
estimated 800 barrels of biocrude per day will be produced at
Fulcrum's Sierra BioFuels Plant in Reno, Nevada, which is expected
to be operational in early 2018.
-
Virent, Inc.: Tesoro and
Virent are working to establish a strategic relationship to support
scale-up and commercialization of Virent's BioForming technology
which produces low-carbon, biofuel and chemicals.
-
Ensyn Corporation: Ensyn
has applied for a pathway with the California Air Resources Board
to co-process its biocrude, produced from tree residue - called
Renewable Fuel Oil(TM) - in TRMC's California refineries.
"We've established relationships such as those
with Fulcrum, Virent, and Ensyn, to progress technologies which
would enable our existing fuel manufacturing infrastructure to help
meet the demand for low-carbon, advanced biofuels. Working with
these companies, Tesoro seeks to create shared value that will
benefit our communities, consumers and the environment, while
allowing us to supply biofuels at a competitive price," says CJ
Warner, Executive Vice President of Strategy and Business
Development at Tesoro.
About Tesoro
Tesoro Corporation, a Fortune 100 company, is an independent
refiner and marketer of petroleum products. Tesoro, through its
subsidiaries, operates six refineries in the western United States
with a combined capacity of over 875,000 barrels per day and
ownership in a logistics business which includes an interest in
Tesoro Logistics LP (NYSE: TLLP) and ownership of its general
partner. Tesoro's retail-marketing system includes over 2,200
retail stations under the ARCO®, Shell®, Exxon®, Mobil®, USA
Gasoline(TM) and Tesoro® brands.
This press release contains
certain statements that are "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 concerning the expected
benefits of converting renewable biomass into biocrude, including
production of renewable fuels at lower capital and operating costs
than competing technologies, and lowering compliance costs;
the establishment or furthering of these strategic partnerships;
the ability to use our existing fuel manufacturing infrastructure
to produce low-carbon advanced biofuels; and our ability to sell
biofuels at a competitive price. For more information concerning
factors that could affect these statements see our annual report on
Form 10-K and quarterly reports on Form 10-Q, filed with the
Securities and Exchange Commission. We undertake no obligation to
publicly release the result of any revisions to any such
forward-looking statements that may be made to reflect events or
circumstances that occur, or which we become aware of, after the
date hereof.
###
Tesoro Contacts:
Investors:
Sam Ramraj, Vice President, Investor Relations, (210) 626-4757
Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Tesoro Corporation via Globenewswire
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