Phillips 66 to convert crude oil refinery in California into renewable fuels plant

US energy manufacturing and logistics company Phillips 66 (NYSE:PSX) plans to reconfigure a site in California to produce renewable fuels.

If the project is executed, the San Francisco Refinery in Rodeo would no longer produce fuels from crude oil but some 680 million gallons of renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oil, fats, greases and soybean oils. Moreover, together with the output of another project in development, the facility would produce over 800 million gallons a year of renewable fuels. This would make it the largest such plant in the world, Phillips 66 said.

The company is looking for clearance by Contra Costa County officials and the Bay Area Air Quality Management District to construct pre-treatment units and repurpose existing hydrocracking units to enable production of renewable fuels. If the project is approved, production could start in early 2024.

According to Phillips 66, the project will create up to 500 construction jobs and will ultimately reduce the plant’s greenhouse gas emissions by 50%. Once the conversion is completed, the facility will employ over 400 people.

The company also unveiled its plan to close the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023, while the associated crude oil pipelines will be taken out of service in phases beginning the same year.

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