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Released April 03, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. refiner Phillips 66 (NYSE:PSX) (Houston, Texas) said it completed what it considered a major milestone in the conversion of a refinery in California to produce as much as 30,000 barrels per day of renewable diesel.
The refiner said its Rodeo Renewable Energy Complex in San Francisco was converted to process only renewable feedstocks to yield so-called renewable diesel. The company said production would eventually ramp up to about 50,000 barrels per day, a level the company said would establish it as a leader in renewable fuels.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can learn more from a detailed project report and plant profile.
"The project advances Phillips 66's long-held strategy to expand our renewable fuels production, lower our carbon footprint and provide reliable, affordable energy, while creating long-term value for our shareholders," said Rich Harbison, an executive vice president of refining at the company.
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 biomass feedstock. It's also considered a drop-in fuel, meaning it can be blended, transported, used and even co-produced with conventional diesel.
Production processes, meanwhile, are similar to petroleum diesel so it only takes a few modest changes to convert a facility to renewables.
Before the early 2000s, consumption of renewable diesel was considerably low, though various tax credits and other incentives are supporting the switch. Production from 2020 to 2021 doubled, for example.
Meanwhile, more than 25% of the diesel sold in California comes from renewable feedstocks. However, most of the operational capacity to produce renewable diesel is produced outside the region. Data from Industrial Info show about 25% of the nation's total existing renewable diesel capacity is in PADD V, while the Gulf Coast region, PADD III, accounts for about half.
"With government incentives evolving, we see that pattern start to shift after this year," said Hillary Stevenson, Industrial Info's senior director of energy market intelligence. "Between now and 2026, for example, PADD V accounts for nearly all of the renewable facilities under construction."
Without those incentives, many of the overhauls would be unprofitable. And with the transportation sector among the most heavily polluting industries, the sector is evolving from the road to the air in the form of SAF.
As with renewable diesel in California, both the Los Angeles and San Francisco international airports have used SAF since at least 2020.
Philipps 66, meanwhile, took a hit in its refining segment during the fourth quarter, with pre-tax income of $797 million, compared with $1.7 billion in the third quarter. The decline was due primarily to lower refining margins.
Nevertheless, the company has a dozen or so projects in the works that could increase its market share from about 1% in 2023 to 5% by 2025.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
The refiner said its Rodeo Renewable Energy Complex in San Francisco was converted to process only renewable feedstocks to yield so-called renewable diesel. The company said production would eventually ramp up to about 50,000 barrels per day, a level the company said would establish it as a leader in renewable fuels.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project and Plant databases can learn more from a detailed project report and plant profile.
"The project advances Phillips 66's long-held strategy to expand our renewable fuels production, lower our carbon footprint and provide reliable, affordable energy, while creating long-term value for our shareholders," said Rich Harbison, an executive vice president of refining at the company.
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 biomass feedstock. It's also considered a drop-in fuel, meaning it can be blended, transported, used and even co-produced with conventional diesel.
Production processes, meanwhile, are similar to petroleum diesel so it only takes a few modest changes to convert a facility to renewables.
Before the early 2000s, consumption of renewable diesel was considerably low, though various tax credits and other incentives are supporting the switch. Production from 2020 to 2021 doubled, for example.
Meanwhile, more than 25% of the diesel sold in California comes from renewable feedstocks. However, most of the operational capacity to produce renewable diesel is produced outside the region. Data from Industrial Info show about 25% of the nation's total existing renewable diesel capacity is in PADD V, while the Gulf Coast region, PADD III, accounts for about half.
"With government incentives evolving, we see that pattern start to shift after this year," said Hillary Stevenson, Industrial Info's senior director of energy market intelligence. "Between now and 2026, for example, PADD V accounts for nearly all of the renewable facilities under construction."
Without those incentives, many of the overhauls would be unprofitable. And with the transportation sector among the most heavily polluting industries, the sector is evolving from the road to the air in the form of SAF.
As with renewable diesel in California, both the Los Angeles and San Francisco international airports have used SAF since at least 2020.
Philipps 66, meanwhile, took a hit in its refining segment during the fourth quarter, with pre-tax income of $797 million, compared with $1.7 billion in the third quarter. The decline was due primarily to lower refining margins.
Nevertheless, the company has a dozen or so projects in the works that could increase its market share from about 1% in 2023 to 5% by 2025.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
