Phillips 66 Rodeo Renewed project to reconfigure Rodeo refinery to produce renewed fuels

US diversified energy company Phillips 66 revealed plans to reconfigure its San Francisco Refinery in Rodeo, California, for producing renewable fuels under the Phillips 66 Rodeo Renewed project.

The refinery will stop producing fuels from crude oil and will make fuels from used cooking oil, greases, fats, and soybean oils.

The Phillips 66 Rodeo Renewed project will aim to produce 680 million gallons per year of renewable diesel, sustainable jet fuel, and renewable gasoline. Along with renewable fuels production from an existing project in development, the reconfigured refinery in Rodeo will produce over 800 million gallons annually of renewable fuels, making it the largest facility of its kind, claimed Phillips 66.

The scope of the Phillips 66 Rodeo Renewed project calls for the construction of pre-treatment units and the repurposing of existing hydrocracking units to facilitate renewable fuels production. The reconfigured refinery will leverage its flexible logistics infrastructure to bring in cooking oil, greases, fats, and soybean oils from global sources and supply renewable fuels to the Californian market.

Phillips 66 said that the capital-efficient investment is anticipated to generate strong returns via the sale of high-value products while reducing the operating costs of the Rodeo refinery.

Phillips 66 Rodeo Renewed project to reconfigure Rodeo refinery to produce renewed fuels. Photo courtesy of Dreamyshade/Wikimedia Commons.

Greg Garland – chairman and CEO of Phillips 66 said: “Phillips 66 is taking a significant step with RodeoRenewed to support demand for renewable fuels and help California meet its low carbon objectives.

“We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from RodeoRenewed will be an important part of that mix. This project is a great example of how Phillips 66 is making investments in the energy transition that will create long term value for our shareholders.”

The Phillips 66 Rodeo Renewed project, if cleared by Contra Costa County officials and the Bay Area Air Quality Management District, is expected to start producing renewable fuels in early 2024. Once reconfigured, the Rodeo refinery will stop transporting or processing crude oil.

The Phillips 66 Rodeo Renewed project is anticipated to employ over 400 people, besides creating up to 500 construction jobs.

Phillips 66 said that it also intends to shut down the Rodeo Carbon Plant and Santa Maria refining facility located in Arroyo Grande, California, in 2023. The company said that the associated crude oil pipelines will be taken out of service in a phased manner starting in 2023.