US refiner Phillips 66 on Wednesday said it intends to convert its crude oil refinery in Rodeo, California, crude oil refinery into a production facility that uses cooking oil and food wastes to produce bio-based motor fuels. Previously fellow US refiners, including Marathon Petroleum, CVR Energy, and HollyFrontier Corp, also announced plans to transform their existing facilities to produce renewable fuels.
Phillips 66’s plan can be worth up to $800 million. The reconfigured facility is expected to produce 680 million gallons/year of bio-based gasoline, diesel, and jet fuel starting from 2024. Phillips 66 also operates an existing renewable diesel project at the Rodeo site which is expected to produce 120 million gallons/year beginning from mid-2021. The company will also close down its refinery in Arroyo Grande by 2023 and take pipelines supplying crude oil to those facilities out of service in phases beginning in that year.
A spokesperson for the American Fuel and Petrochemical Manufacturers said that there is a growing demand for renewable fuels in the country. California, the largest fuel market in the US, has been pursuing lower carbon emissions and petroleum use in transportation by enacting the low carbon fuel standard (LCFS). Hence, refiners are exploring projects to meet the rising demand while helping underutilized facilities to stay operational. There is also a possibility that other states will soon implement their LCFS.
