Major independent refiners in the United States are promoting projects to increase renewable fuel production after the COVID-19 pandemic dented fuel demand in 2020. Renewable fuels can help refiners to adapt to a new reality where electric mobility increasingly gains more popularity. During their latest earnings calls, executives from US refiners allocated plenty of time talking up how they would produce fuels that emit fewer emissions.
Marathon Petroleum CEO Mike Hennigan said that the company is committed to sustainable energy. The company completed a conversion project at its plant in Dickinson, North Dakota which began renewable diesel production in late 2020. It is also working on converting its Martinez refinery in California into biofuel production. The Martinez plant has been shut since early 2020 due to weak fuel demand.
Valero Energy reported that renewable diesel was the only segment which posted a profit last year. CEO Joe Gorder said that cleaner fuels would be part of the future although fossil fuel-propelled vehicles are far from being extinct. Valero is partnering with Darling Ingredients to develop a biorefinery in Port Arthur, Texas that can produce up to 1.2 billion gallons/year of renewable diesel.
Phillips 66, which posted a $4 billion loss for 2020, also talked up a project to convert its Rodeo refining plant in San Francisco into renewable fuel production. CEO Greg Garland said that Phillips 66 wanted to participate in the energy transition.
