Proposed project would produce renewable
fuels in Washington state
Phillips 66 (NYSE:PSX) and Renewable Energy Group, Inc.
(NASDAQ:REGI) announced today that planning is underway for the
construction of a large-scale renewable diesel plant on the U.S.
West Coast.
The plant would utilize REG’s proprietary BioSynfining®
technology for the production of renewable diesel fuel. Planned
feedstocks include a mix of waste fats, oils and greases, including
regionally-sourced vegetable oils, animal fats and used cooking
oil.
“REG is excited to be working with a leading refiner, Phillips
66, on a project that has the potential to significantly expand
biofuel production in Washington state and provide low carbon fuel
markets with products that are in significant demand on the West
Coast,” said Randy Howard, CEO of REG. “We look forward to working
with state and local stakeholders to facilitate development of this
important project and increase the supply of low carbon fuels in
the region.”
The new facility would be constructed adjacent to the Phillips
66 Ferndale Refinery in Washington state. The Ferndale Refinery
offers existing infrastructure, including tank storage, a dock, and
rail and truck rack access.
“The proposed facility’s strategic location in Washington state
would enable us to move renewable fuels more efficiently to support
West Coast and international fuel market demand.” said Brian
Mandell, senior vice president, Marketing and Commercial, Phillips
66. “We continually look for opportunities to provide our customers
with a reliable source of innovative renewable fuels.”
This announcement follows more than a year of collaboration
between Phillips 66 and REG related to site selection and
preliminary engineering. The companies expect to make a final
investment decision in 2019. If approved, production at the new
facility is currently premised to start in 2021.
REG owns and operates 13 biomass-based diesel
refineries, with a combined effective production capacity of 565
million gallons per year. This includes REG Geismar, a
75-million-gallon nameplate capacity plant located in Louisiana
that was the first renewable diesel plant built in North America.
REG’s 100 million gallon per year REG Grays Harbor biodiesel plant,
the largest biorefinery in the REG fleet, is also located in
Washington state.
About Phillips 66Phillips 66 is a
diversified energy manufacturing and logistics company. With a
portfolio of Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, the company processes, transports, stores
and markets fuels and products globally. Phillips 66 Partners, the
company's master limited partnership, is integral to the portfolio.
Headquartered in Houston, the company has 14,200 employees
committed to safety and operating excellence. Phillips 66 had $56
billion of assets as of Sept. 30, 2018. For more information, visit
http://www.phillips66.com or follow us on Twitter
@Phillips66Co.
About Renewable Energy GroupRenewable
Energy Group, Inc. (NASDAQ:REGI) is a leading provider of
cleaner, lower carbon intensity products and services. We are an
international producer of biomass-based diesel, a developer of
renewable chemicals and are North America's largest
producer of advanced biofuel. REG utilizes an integrated
procurement, distribution, and logistics network to convert natural
fats, oils, greases, and sugars into lower carbon intensity
products. With 14 active biorefineries, a feedstock processing
facility, research and development capabilities and a diverse and
growing intellectual property portfolio, REG is committed to being
a long-term leader in bio-based fuel and chemicals.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Words and phrases such as “is anticipated,” “is
estimated,” “is expected,” “is planned,” “is scheduled,” “is
targeted,” “believes,” “continues,” “intends,” “will,” “would,”
“objectives,” “goals,” “projects,” “efforts,” “strategies” and
similar expressions are used to identify such forward-looking
statements. However, the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements
relating to Phillips 66’s operations, business plans and future
actions or performance (including those of its joint ventures) are
based on management’s expectations, estimates and projections about
the company, its interests and the energy industry in general on
the date this news release was prepared. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ
materially from those described in the forward-looking statements
include fluctuations in NGL, crude oil, and natural gas prices, and
petrochemical and refining margins; unexpected changes in costs for
constructing, modifying or operating our facilities; unexpected
difficulties in manufacturing, refining or transporting our
products; lack of, or disruptions in, adequate and reliable
transportation for our NGL, crude oil, natural gas, and refined
products; potential liability from litigation or for remedial
actions, including removal and reclamation obligations under
environmental regulations; limited access to capital or
significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets; and
other economic, business, competitive and/or regulatory factors
affecting Phillips 66’s businesses generally as set forth in our
filings with the Securities and Exchange Commission. Phillips 66 is
under no obligation (and expressly disclaims any such obligation)
to update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise.
CONTACTSJoe Gannon, Phillips
66832-765-4547joe.gannon@p66.com
or
Katie Stanley, REG515-239-8184katie.stanley@regi.com
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