Phillips 66 Makes Final Investment Decision to Convert San Francisco Refinery to a Renewable Fuels Facility
May 11 2022 - 4:30PM
Business Wire
It will be one of the world’s largest
facilities of its kind; expected to begin commercial operation in
the first quarter of 2024
Phillips 66 (NYSE: PSX) made a final investment decision
Wednesday to move forward with Rodeo Renewed, the project to
convert its San Francisco Refinery in Rodeo, California, into one
of the world’s largest renewable fuels facilities. The project,
which recently received approval from Contra Costa County, is
expected to cost approximately $850 million and begin commercial
operations in the first quarter of 2024.
“Rodeo Renewed stands to play a major role in helping us lower
our carbon footprint as we continue to provide reliable, affordable
energy,” said Greg Garland, Chairman and CEO of Phillips 66. “This
is a project that will help meet growing demand for lower-carbon
fuels, preserve jobs and support California in achieving its
climate goals. It is a great example of how Phillips 66 is making
meaningful investments in a sustainable energy future that can
create long-term value for our shareholders.”
Upon completion of Rodeo Renewed, the converted facility will no
longer process crude oil and instead use waste oils, fats, greases
and vegetable oils to produce an initial 800 million gallons per
year (over 50,000 barrels per day) of renewable transportation
fuels, including renewable diesel, renewable gasoline and
sustainable aviation fuel. Production of these fuels is projected
to reduce lifecycle carbon emissions by approximately 65% — the
equivalent of taking 1.4 million cars off California roads each
year. Rodeo Renewed is also expected to cut criteria pollutant
emissions at the site by 55% and water use by 160 million gallons
per year.
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 will leverage its flexible logistics infrastructure to
secure renewable feedstocks from local, domestic and international
sources and supply renewable fuels to California and other
markets.
The facility conversion will create 500 construction jobs and
preserve more than 650 jobs, including full-time employees and
contractors. It is poised to help California meet demand for
transportation fuels while assisting the state in achieving its
environmental goals.
About Phillips 66
Phillips 66 (NYSE: PSX) manufactures, transports and markets
products that drive the global economy. The diversified energy
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 or Twitter.
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 “anticipated,”
“estimated,” “expected,” “planned,” “scheduled,” “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 included in this
news release are based on management’s expectations, estimates and
projections as of the date they are made. These statements are not
guarantees of future performance and you should not unduly rely on
them as they 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: the inability to timely obtain
or maintain permits necessary for capital projects; changes to
worldwide government policies relating to renewable fuels and
greenhouse gas emissions that adversely affect programs like the
renewable fuel standards program, low carbon fuel standards and tax
credits for biofuels; unexpected changes in costs for constructing,
modifying or operating our facilities; risks and uncertainties with
respect to the actions of actual or potential competitive suppliers
and transporters of renewable fuels; failure to complete
construction of capital projects on time and within budget; the
inability to comply with governmental regulations or make capital
expenditures to maintain compliance; limited access to capital or
significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets;
potential disruption of our operations due to accidents, weather
events, including as a result of climate change, terrorism or
cyberattacks; general domestic and international economic and
political developments including armed hostilities, expropriation
of assets, and other political, economic or diplomatic
developments, including those caused by public health issues and
international monetary conditions and exchange controls; changes in
governmental policies relating to renewable fuels pricing,
regulation or taxation, including exports; investments required, or
reduced demand for products, as a result of environmental rules and
regulations; changes in tax, environmental and other laws and
regulations (including alternative energy mandates); political and
societal concerns about climate change that could result in changes
to our business or increase expenditures, including
litigation-related expenses; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220511005866/en/
Jeff Dietert (investors) 832-765-2297 jeff.dietert@p66.com
Shannon Holy (investors) 832-765-2297 shannon.m.holy@p66.com
Thaddeus Herrick (media) 855-841-2368
thaddeus.f.herrick@p66.com
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