Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released July 01, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The Rodeo refinery in San Francisco, California, has achieved full production of renewable fuels, transforming the complex from traditional operations within the desired time frame, Phillips 66 (NYSE:PSX) (Houston, Texas) said.
The company has been working to convert its Rodeo Renewable Energy Complex in San Francisco to process only renewable feedstocks to yield so-called renewable diesel. On Wednesday, the company said it had increased its production rate to 50,000 barrels per day (BBL/d), reaching its goal of full capacity by the second quarter.
"The announcement also marks a significant step in Phillips 66's commitment to play a meaningful role in the energy transition and provide customers with lower-carbon solutions," the company said.
Refiners are looking to renewable options, from diesel to sustainable aviation fuels (SAF), as the energy transition evolves.
Renewable diesel production can draw on nearly any type of biomass for feedstock. A pre-treatment facility at Rodeo means the complex can process feedstocks such as used cooking oil, fats, greases and vegetable oil, feedstocks the company said have a lower carbon intensity.
Renewable diesel is also considered a drop-in fuel, meaning it can be blended, transported, used and even co-produced with conventional diesel.
"Phillips 66 has reached another important milestone, which is a testament to our employees' dedication to achieving our company's strategic priorities," said Rich Harbison, the company's executive vice president of refining. "The facility running at full capacity supports the growing demand for renewable fuels, lowers our carbon footprint and creates long-term value for our shareholders."
Rodeo is an asset for California as more than 25% of the diesel sold in the state comes from renewable feedstocks. However, most of the operational capacity to produce renewable diesel comes from outside the region, particularly PADD III, the U.S. Gulf Coast region.
Compared to the refining of conventional products, Phillips said producing renewable fuels cuts lifecycle carbon emissions by 8.5 million metric tons per year, the same as pulling 1.4 million gasoline-powered vehicles off the road.
"Also, the conversion cuts hazardous criteria air pollutant emissions by over 70% and greenhouse gas emissions by 38%," added Jolie Rhinehart, a vice president at the Rodeo complex.
Plans for the conversion were announced in 2022, with construction commencing in January 2023 after the company received the necessary air permits to start work. Production processes are similar to petroleum diesel so it only takes a few modest changes to convert a facility to renewables.
Phillips 66 reported an adjusted pre-tax income from its refining segment of $228 million for the first quarter, down from the $797 million realized in the prior quarter. The company blamed the decline on poor refining margins.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can click here for the Rodeo Refinery project report and click here for the plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company has been working to convert its Rodeo Renewable Energy Complex in San Francisco to process only renewable feedstocks to yield so-called renewable diesel. On Wednesday, the company said it had increased its production rate to 50,000 barrels per day (BBL/d), reaching its goal of full capacity by the second quarter.
"The announcement also marks a significant step in Phillips 66's commitment to play a meaningful role in the energy transition and provide customers with lower-carbon solutions," the company said.
Refiners are looking to renewable options, from diesel to sustainable aviation fuels (SAF), as the energy transition evolves.
Renewable diesel production can draw on nearly any type of biomass for feedstock. A pre-treatment facility at Rodeo means the complex can process feedstocks such as used cooking oil, fats, greases and vegetable oil, feedstocks the company said have a lower carbon intensity.
Renewable diesel is also considered a drop-in fuel, meaning it can be blended, transported, used and even co-produced with conventional diesel.
"Phillips 66 has reached another important milestone, which is a testament to our employees' dedication to achieving our company's strategic priorities," said Rich Harbison, the company's executive vice president of refining. "The facility running at full capacity supports the growing demand for renewable fuels, lowers our carbon footprint and creates long-term value for our shareholders."
Rodeo is an asset for California as more than 25% of the diesel sold in the state comes from renewable feedstocks. However, most of the operational capacity to produce renewable diesel comes from outside the region, particularly PADD III, the U.S. Gulf Coast region.
Compared to the refining of conventional products, Phillips said producing renewable fuels cuts lifecycle carbon emissions by 8.5 million metric tons per year, the same as pulling 1.4 million gasoline-powered vehicles off the road.
"Also, the conversion cuts hazardous criteria air pollutant emissions by over 70% and greenhouse gas emissions by 38%," added Jolie Rhinehart, a vice president at the Rodeo complex.
Plans for the conversion were announced in 2022, with construction commencing in January 2023 after the company received the necessary air permits to start work. Production processes are similar to petroleum diesel so it only takes a few modest changes to convert a facility to renewables.
Phillips 66 reported an adjusted pre-tax income from its refining segment of $228 million for the first quarter, down from the $797 million realized in the prior quarter. The company blamed the decline on poor refining margins.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can click here for the Rodeo Refinery project report and click here for the plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
