Conversion is expected to reduce the plant’s
greenhouse gas emissions by 50%
Phillips 66 (NYSE: PSX), a diversified energy manufacturing and
logistics company, announced today that it plans to reconfigure its
San Francisco Refinery in Rodeo, California, to produce renewable
fuels. The plant would no longer produce fuels from crude oil, but
instead would make fuels from used cooking oil, fats, greases and
soybean oils.
The Phillips 66 Rodeo Renewed project would produce 680 million
gallons annually of renewable diesel, renewable gasoline, and
sustainable jet fuel. Combined with the production of renewable
fuels from an existing project in development, the plant would
produce greater than 800 million gallons a year of renewable fuels,
making it the world’s largest facility of its kind.
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 utilize its flexible
logistics infrastructure to bring in cooking oil, fats, greases and
soybean oils from global sources and supply renewable fuels to the
California market. This capital efficient investment is expected to
deliver strong returns through the sale of high value products
while lowering the plant’s operating costs.
“Phillips 66 is taking a significant step with Rodeo Renewed to
support demand for renewable fuels and help California meet its low
carbon objectives,” said Greg Garland, chairman and CEO of Phillips
66. “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.”
If approved by Contra Costa County officials and the Bay Area
Air Quality Management District, renewable fuels production is
expected to begin in early 2024. Once reconfigured, the plant will
no longer transport or process crude oil.
The plant is expected to employ more than 400 jobs and up to 500
construction jobs, using local union labor, including the Contra
Costa County Building & Construction Trades.
Phillips 66 also announced plans to shut down the Rodeo Carbon
Plant and Santa Maria refining facility in Arroyo Grande,
California, in 2023. Associated crude oil pipelines will be taken
out of service in phases starting in 2023.
To learn more about the project, visit www.RodeoRenewed.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics
company. With a portfolio of Midstream, Chemicals, Refining, and
Marketing and Specialties businesses, the company processes,
transports, stores and markets fuels and products globally.
Phillips 66 Partners, the company's master limited partnership, is
integral to the portfolio. Headquartered in Houston, the company
has 14,500 employees committed to safety and operating excellence.
Phillips 66 had $55 billion of assets as of June 30, 2020. For more
information, visit http://www.phillips66.com or follow us on
Twitter @Phillips66Co.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
“SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This presentation contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Words and phrases such as “is anticipated,” “is
estimated,” “is expected,” “is planned,” “is scheduled,” “is
targeted,” “believes,” “continues,” “intends,” “will,” “would,”
“objectives,” “goals,” “projects,” “efforts,” “strategies” and
similar expressions are used to identify such forward-looking
statements. However, the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements
included in this presentation are based on management’s
expectations, estimates and projections as of the date they are
made. These statements are not guarantees of future performance and
you should not unduly rely on them as they involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ
materially from those described in the forward-looking statements
include the inability to timely obtain or maintain permits
necessary for capital projects, including the Rodeo Renewed
project; changes to worldwide government policies relating to
renewable fuels and greenhouse gas emissions that adversely affect
programs like the renewable fuel standards program, low carbon fuel
standards and tax credits for biofuels; fluctuations in NGL, crude
oil, and natural gas prices, and petrochemical and refining
margins; unexpected changes in costs for constructing, modifying or
operating our facilities, including the Rodeo Renewed project;
unexpected difficulties in manufacturing, refining or transporting
our products; risks and uncertainties with respect to the actions
of actual or potential competitive suppliers and transporters of
refined petroleum products, renewable fuels or specialty products;
lack of, or disruptions in, adequate and reliable transportation
for our NGL, crude oil, natural gas, and refined products;
potential liability from litigation or for remedial actions,
including removal and reclamation obligations under environmental
regulations; limited access to capital or significantly higher cost
of capital related to illiquidity or uncertainty in the domestic or
international financial markets; potential disruption of our
operations due to accidents, weather events, including as a result
of climate change, terrorism or cyberattacks; general economic and
political developments including: armed hostilities; expropriation
of assets; changes in governmental policies relating to NGL, crude
oil, natural gas, refined petroleum products, or renewable fuels
pricing, regulation or taxation; political, economic or diplomatic
developments, including those caused by public health issues,
outbreaks of diseases and pandemics, including the COVID-19
pandemic and other economic, business, competitive and / or
regulatory factors affecting Phillips 66’s businesses generally as
set forth in our filings with the Securities and Exchange
Commission. Phillips 66 is under no obligation (and expressly
disclaims any such obligation) to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200812005515/en/
Jeff Dietert (investors) 832-765-2297 jeff.dietert@p66.com
Brent Shaw (investors) 832-765- 2297 brent.d.shaw@p66.com
Joe Gannon (media) 855-841-2368 joe.gannon@p66.com
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