In the United States (US), oil major Phillips 66 Company (Phillips 66) has made a final investment decision to convert its San Francisco Refinery to a renewable fuels facility. Expected to begin commercial operation in the first quarter of 2024 it will be one of the world’s largest facilities of its kind.
The project, which recently received approval from Contra Costa County, is expected to cost approximately US$850 million and begin commercial operations in the first quarter of 2024.
Rodeo Renewed stands to play a major role in helping us lower our carbon footprint as we continue to provide reliable, affordable energy, said Greg Garland, Chairman, and CEO of Phillips 66.
Upon completion of Rodeo Renewed, the converted facility will no longer process crude oil and instead use waste oils, fats, greases, and vegetable oils to produce an initial 800 million (US) gallons (≈ 3.03 billion litres) per year or over 50 000 barrels per day of renewable transportation fuels, including renewable diesel, renewable gasoline, and sustainable aviation fuel (SAF).
Reduced lifecycle emissions
Production of these fuels is projected to reduce lifecycle carbon emissions by approximately 65 percent.
Rodeo Renewed is also expected to cut criteria pollutant emissions at the site by 55 percent and water use by 160 million gallons (≈ 606 million litres) per year.
The scope of the project includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable the production of renewable fuels.
The converted facility will leverage its flexible logistics infrastructure to secure renewable feedstocks from local, domestic and international sources and supply renewable fuels to California and other markets.
Meet renewable fuel demand
The facility conversion will create 500 construction jobs and preserve more than 650 jobs, including full-time employees and contractors.
It is poised to help California meet the demand for transportation fuels while assisting the state in achieving its environmental goals.
This is a project that will help meet the growing demand for lower-carbon fuels, preserve jobs and support California in achieving its climate goals. It is a great example of how Phillips 66 is making meaningful investments in a sustainable energy future that can create long-term value for our shareholders, ended Greg Garland.