Phillips 66 Announces Major Milestone in Production of Renewable Diesel

(Phillips 66/Business Wire) Phillips 66 (NYSE: PSX) today announced a major milestone in its conversion of the San Francisco refinery into the Rodeo Renewable Energy Complex, expanding commercial scale production of renewable diesel.

The Rodeo Renewed project has progressed, with the facility now processing only renewable feedstocks and producing approximately 30,000 barrels per day of renewable diesel. The Rodeo Renewable Energy Complex is on track to increase production rates to more than 800 million gallons per year (50,000 BPD) of renewable fuels by the end of the second quarter, positioning Phillips 66 as a leader in renewable fuels.

“We are proud to announce this significant achievement at our Rodeo facility,” said Rich Harbison, Phillips 66 executive vice president of Refining. “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.”

Harbison added, “We’ve had strong execution to-date and are fully focused on finalizing the project in the second quarter.”

The Rodeo Renewed project design also provides the capability of producing renewable jet, a key component of sustainable aviation fuel (SAF), expected to start production in the second quarter of 2024.

Phillips 66 made a final investment decision to move forward with the Rodeo Renewed project in 2022, transforming the San Francisco refinery into one of the world’s largest renewable fuels facilities. As a world-class supplier of renewable fuels, the converted facility leverages a premium geographic location, unique processing infrastructure and flexible logistics to significantly reduce lifecycle carbon emissions.

Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn. READ MORE

Excerpt from SAF Magazine: Harbison discussed the Rodeo Renew project during the company’s second quarter earnings call, which was held on Jan. 31. At that time, Harbison said work on a feedstock pretreatment unit (PTU) was scheduled to be complete in April. He also discussed the types of feedstocks the biorefinery will process, noting the facility would likely start of processing “easier” feedstocks, such as vegetable oils, some used cooking oils and neat vegetable oils. Once the PTU is operational, the facility is expected to start introducing lower carbon intensity (CI) feedstocks, such as fats, greases and tallows. Company officials are expected to provide additional operational updates during its second quarter earnings call, which is currently scheduled to be held April 26. READ MORE

Excerpt from SAF Magazine: Phillips 66 on April 26 announced its Rodeo biorefinery in San Francisco is expected to be producing 50,000 barrels per day of renewable fuels by the end of second quarter. The facility began producing renewable diesel during the first quarter and is expected to begin producing sustainable aviation fuel (SAF) components soon.

Phillips 66 in May 2022 made a final investment decision to convert the Rodeo refinery to renewables. At that time the company explained that the scope of the project includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable production of renewable fuels.

The converted facility, referred to as the Rodeo Renewable Energy Complex, is now processing only renewable feedstocks. During a first quarter earnings call, held April 26, Phillips 66 President and CEO Mark Lashier said the biorefinery is currently producing 30,000 barrels per day of renewable fuels. “We're on track to increase production capability to full rates of approximately 50,000 barrels per day by the end of the second quarter,” he said. “Once complete, we'll have the ability to produce renewable jet, a key component of sustainable aviation fuel.”

Richard Harbison, executive vice president of refining at Phillips 66, further explained that facility’s first hydrocracker began producing renewables in March, with the capacity to produce approximately 30,000 barrels per day of renewable fuels. Construction of the second hydrocracker and the feedstock pretreatment unit is expected to be complete in May with startup scheduled for June, he added.

During the third quarter, Harbison said the Rodeo facility is expected to begin taking lower carbon intensity (CI) feedstocks, including more recycled fats, oils and greases. The facility is expected to have the capabilities to produce SAF by the third quarter. Lashier indicated the SAF capacity will be in the range of 10,000 barrels per day. READ MORE