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Released July 29, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--At least three U.S. refiners included updates on their renewable diesel projects in their second-quarter earnings reports.
The latest of these was Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio), which delivered its earnings results on Tuesday. The company gave a progress report on its $1.2 billion Martinez Refinery renewable fuels project in the East Bay region of the San Francisco Bay Area of California. The conversion project will breathe new life in the 161,000-barrel-per-day (BBL/d) refinery, which was closed in April 2020 following COVID-induced drop in demand for refined products.
Marathon said the final environmental report on the project was certified on May 3 by the Contra Costa County Board of Supervisors. Also, the Bay Area Air Quality Management District posted an air quality permit for the project on July 22, kicking off a 30-day public comment period.
Speaking during the company's earnings conference call, Ray Brooks, executive vice president, refining, said "getting the air permit will be a big deal."
The first phase of the facility is targeted to be mechanically complete by year-end 2022, Marathon said. Initial production capacity is expected to be 17,000 BBL/d, or 260 million gallons per year, of renewable fuels. The facility is expected to be capable of producing 48,000 BBL/d, or 730 million gallons per year, by the end of 2023.
Brooks said once the air permit is finalized, Marathon can finalize its joint venture partnership with refiner Neste Oyj (Espoo, Finland).
The 50/50 joint venture was announced in March, with Neste expected to contribute $1 billion, including half of the Martinez project development costs.
The partnership would "advance the current project objectives of delivering low-carbon-intensity fuels to support California's climate goals, Marathon said in the March 1 announcement. Marathon and Neste "will leverage their complementary core competencies in the joint venture. (Marathon) brings experience in renewable diesel facility conversion, large capital project execution, and operating expertise in the California market. Neste brings knowledge in sustainable feedstock sourcing and in renewable liquid fuels production."
The production output from the project would be split evenly between the joint venture partners, and each partner would marketing the products under its own brand.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can click here for a list of detailed Martinez Refinery renewable fuels project reports.
Industrial Info is tracking more than $6.9 billion worth of Marathon projects. Subscribers to Industrial Info's Global Marketing Intelligence (GMI) Petroleum Refining Project Database can click here for a list of detailed project reports.
PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) and Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) also gave progress reports on their respective renewable diesel projects in their second-quarter 2022 earnings reports.
PBF is planning a substantial investment for a new renewable diesel facility at its site in Chalmette, Louisiana.
PBF said it has invested about $52 million to "continue progress and incubate the project with the goal of being in production in the first half of 2023. Concurrent with our activities to progress the project, we are continuing discussions with potential strategic and financial partners."
The project involves renovating and replacing parts of a hydrocracker, which was mothballed in 2010, to produce 20,000 barrels per day of renewable diesel. Subscribers can click here for a detailed project report. For related information, see July 29, 2022, PBF Works on Renewable Diesel Project, Sees Big Profits.
Valero, meanwhile, is constructing a renewable diesel unit for its Diamond Green Diesel (DGD) joint venture next to its Port Arthur Refinery in Texas. The project, known as DGD 3, is expected to be operational in the fourth quarter of this year. During its earnings conference call, Valero Chief Executive Officer Joe Gorder said, "The completion of this 470 million-gallon-per-year plant is expected to double DGD's total annual capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha." Subscribers can click here for the report. For related information, see July 29, 2022, article - High Margins Give Boost to Valero Results.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in the article, and click here for a list of related plant profiles.
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 latest of these was Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio), which delivered its earnings results on Tuesday. The company gave a progress report on its $1.2 billion Martinez Refinery renewable fuels project in the East Bay region of the San Francisco Bay Area of California. The conversion project will breathe new life in the 161,000-barrel-per-day (BBL/d) refinery, which was closed in April 2020 following COVID-induced drop in demand for refined products.
Marathon said the final environmental report on the project was certified on May 3 by the Contra Costa County Board of Supervisors. Also, the Bay Area Air Quality Management District posted an air quality permit for the project on July 22, kicking off a 30-day public comment period.
Speaking during the company's earnings conference call, Ray Brooks, executive vice president, refining, said "getting the air permit will be a big deal."
The first phase of the facility is targeted to be mechanically complete by year-end 2022, Marathon said. Initial production capacity is expected to be 17,000 BBL/d, or 260 million gallons per year, of renewable fuels. The facility is expected to be capable of producing 48,000 BBL/d, or 730 million gallons per year, by the end of 2023.
Brooks said once the air permit is finalized, Marathon can finalize its joint venture partnership with refiner Neste Oyj (Espoo, Finland).
The 50/50 joint venture was announced in March, with Neste expected to contribute $1 billion, including half of the Martinez project development costs.
The partnership would "advance the current project objectives of delivering low-carbon-intensity fuels to support California's climate goals, Marathon said in the March 1 announcement. Marathon and Neste "will leverage their complementary core competencies in the joint venture. (Marathon) brings experience in renewable diesel facility conversion, large capital project execution, and operating expertise in the California market. Neste brings knowledge in sustainable feedstock sourcing and in renewable liquid fuels production."
The production output from the project would be split evenly between the joint venture partners, and each partner would marketing the products under its own brand.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can click here for a list of detailed Martinez Refinery renewable fuels project reports.
Industrial Info is tracking more than $6.9 billion worth of Marathon projects. Subscribers to Industrial Info's Global Marketing Intelligence (GMI) Petroleum Refining Project Database can click here for a list of detailed project reports.
PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) and Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) also gave progress reports on their respective renewable diesel projects in their second-quarter 2022 earnings reports.
PBF is planning a substantial investment for a new renewable diesel facility at its site in Chalmette, Louisiana.
PBF said it has invested about $52 million to "continue progress and incubate the project with the goal of being in production in the first half of 2023. Concurrent with our activities to progress the project, we are continuing discussions with potential strategic and financial partners."
The project involves renovating and replacing parts of a hydrocracker, which was mothballed in 2010, to produce 20,000 barrels per day of renewable diesel. Subscribers can click here for a detailed project report. For related information, see July 29, 2022, PBF Works on Renewable Diesel Project, Sees Big Profits.
Valero, meanwhile, is constructing a renewable diesel unit for its Diamond Green Diesel (DGD) joint venture next to its Port Arthur Refinery in Texas. The project, known as DGD 3, is expected to be operational in the fourth quarter of this year. During its earnings conference call, Valero Chief Executive Officer Joe Gorder said, "The completion of this 470 million-gallon-per-year plant is expected to double DGD's total annual capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha." Subscribers can click here for the report. For related information, see July 29, 2022, article - High Margins Give Boost to Valero Results.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in the article, and click here for a list of related plant profiles.
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).
