Phillips 66 and Southwest Airlines collaborate to advance sustainable aviation fuel
April 22 2021 - 3:00PM
Business Wire
Companies sign memorandum of understanding to
increase public awareness, pursue joint research and development
and explore a supply agreement
Phillips 66 (NYSE: PSX) and Southwest Airlines (NYSE: LUV) have
signed a memorandum of understanding to advance the
commercialization of sustainable aviation fuel, focusing on public
awareness and research and development. The memorandum of
understanding also sets the framework to explore a future supply
agreement involving Phillips 66’s Rodeo Renewed project in
California and highlights the commitment by both companies to a
sustainable energy future.
Sustainable aviation fuel, or SAF, is a lower carbon-intensity
fuel that can be produced from renewable feedstocks such as waste
oils, fats, greases and vegetable oils. It is a drop-in fuel,
meaning it can be used in existing aircraft engines and airport
fuel infrastructure.
“Phillips 66 has a long history of driving innovation in the
commercial and general aviation industry,” said Brian Mandell,
Executive Vice President of Marketing and Commercial for Phillips
66. “We are excited to work with Southwest Airlines to find ways to
help achieve its lower-carbon goals and to develop a path forward
for sustainable aviation fuel that benefits all segments of the
industry.”
Phillips 66 is a major U.S. refiner and supplier of jet fuel and
aviation gasoline. The memorandum of understanding aims to leverage
the company’s expertise in refining, distribution and technical
commercialization of transportation fuels as well as its portfolio
of renewable energy projects.
The latter includes Rodeo Renewed, the proposed conversion of
the San Francisco Refinery in Contra Costa County, California, into
one of the world’s largest renewable fuels facilities, capable of
producing an initial 800 million gallons per year of renewable
fuels. The project, subject to permits and approvals, is expected
to be completed in early 2024.
“Southwest Airlines welcomes projects like Phillips 66’s
proposed Rodeo refinery conversion to scale up the SAF industry,
bringing lower-carbon SAF to market in meaningful quantities and
thus helping Southwest meet our carbon-reduction goals,” said Stacy
Malphurs, Southwest’s Vice President of Supply Chain Management
& Environmental Sustainability. “Given Southwest’s extensive
operations in the Bay Area and throughout California, we’re ideally
positioned to benefit from any SAF production by Phillips 66 at
Rodeo.”
Southwest is the largest carrier of air travelers to, from and
within California. Its operations in the state include a major East
Bay hub at Oakland International Airport. The carrier is a member
of Airlines for America, the industry trade organization
representing the leading U.S. airlines that last month announced
the commitment of its member carriers to work to achieve carbon
neutrality by 2050. The pledge includes efforts to advance the
rapid expansion and deployment of SAF to make 2 billion gallons
available to U.S. aircraft operators by 2030.
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 14,300 employees committed to safety and operating excellence.
Phillips 66 had $55 billion of assets as of Dec. 31, 2020. For more
information, visit 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 press release contains 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. Forward-looking statements may be identified by
the use of words like “plans,” “expects,” “will,” “anticipates,”
“believes,” “intends,” “projects,” “targets,” “estimates” or other
words of similar meaning. Forward-looking statements are based on
certain assumptions and expectations of future events which may not
be accurate or realized, and involve risks and uncertainties, many
of which are beyond Phillips 66’s control, including but not
limited to regulatory approvals and market conditions. A discussion
of factors that may affect future results is included in Phillips
66’s filings with the Securities and Exchange Commission. Phillips
66 disclaims and does not undertake any obligation to update or
revise any forward-looking statement, except as required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210422006004/en/
Jeff Dietert (investors) 832-765-2297 jeff.dietert@p66.com
Shannon Holy (investors) 832-765-2297 shannon.m.holy@p66.com
Bernardo Fallas (media) 855-841-2368
bernardo.e.fallas@p66.com
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