Advanced Biofuels USA Inc
Phillips 66 to Build World’s Largest Renewable Diesel, Sustainable Aviation Fuel
Advanced Biofuels USA Inc, California, Missouri, United States, 65018
Phillips 66 to Build World’s Largest Renewable Diesel, Sustainable Aviation Fuel Plant
by Jim Lane (Biofuels Digest) 800 million gallon monster slated for 2024 opening as P66 says it will convert Rodeo Refinery to renewables --Phillips 66 will reconfigure its San Francisco Refinery in Rodeo, California, to produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. Combined with the production of renewable fuels from an existing project in development, the plant would produce greater than 800 million gallons a year of renewable fuels, making it the world’s largest facility of its kind. The plant will no longer produce fuels from crude oil, but instead will make fuels from used cooking oil, fats, greases, and soybean oils. Phillips 66 also announced plans to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023. Associated crude oil pipelines will be taken out of service in phases starting in 2023. The refinery is located in north Contra Costa County on the east side of San Francisco Bay. The project
The scope includes constructing pre-treatment units and repurposing existing hydrocracking units to enable renewable fuel production. The plant will utilize flexible logistics infrastructure to import cooking oil, fats, greases, and soybean oils from global sources and supply renewable fuels to California. This capital-efficient investment aims to deliver strong returns through high-value product sales while reducing operating costs. It is expected to employ over 400 jobs and up to 500 construction jobs, utilizing local union labor, including the Contra Costa County Building & Construction Trades. Excerpt from Olt News/Bloomberg:
The LCFS credits, along with federal RIN D5 credits and tax credits for blenders, generate about $3.32 per gallon in subsidies for renewable diesel producers, covering production costs, according to Marijn Van der Wal in a June report. “It is a staggering amount,” he said. “You’ll make a lot of money as long as all of these grants come in.” Nik Weinberg-Lynn, director of renewable energy projects at Phillips 66, noted that the plant’s dock and rail access make it ideal for sourcing feedstocks like tallow, vegetable oils, and used cooking oils. The facility’s two hydrocrackers and abundant hydrogen supply are crucial for conversion, and its location aligns with high demand areas, especially California’s large renewable diesel market. “California’s renewable diesel market is certainly the largest in the world,” he said. However, Van der Wal mentioned challenges due to market saturation, with many projects proposed and existing suppliers like Neste SA and Valero Energy locking down much of the feedstock, leaving less for new entrants. Phillips 66 is optimistic about sourcing enough raw materials despite these challenges. “We strongly believe, although it will be a challenge, that there is enough,” Weinberg-Lynn stated. READ MORE Nearly 55,000 articles in our online library!
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by Jim Lane (Biofuels Digest) 800 million gallon monster slated for 2024 opening as P66 says it will convert Rodeo Refinery to renewables --Phillips 66 will reconfigure its San Francisco Refinery in Rodeo, California, to produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel. Combined with the production of renewable fuels from an existing project in development, the plant would produce greater than 800 million gallons a year of renewable fuels, making it the world’s largest facility of its kind. The plant will no longer produce fuels from crude oil, but instead will make fuels from used cooking oil, fats, greases, and soybean oils. Phillips 66 also announced plans to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, California, in 2023. Associated crude oil pipelines will be taken out of service in phases starting in 2023. The refinery is located in north Contra Costa County on the east side of San Francisco Bay. The project
The scope includes constructing pre-treatment units and repurposing existing hydrocracking units to enable renewable fuel production. The plant will utilize flexible logistics infrastructure to import cooking oil, fats, greases, and soybean oils from global sources and supply renewable fuels to California. This capital-efficient investment aims to deliver strong returns through high-value product sales while reducing operating costs. It is expected to employ over 400 jobs and up to 500 construction jobs, utilizing local union labor, including the Contra Costa County Building & Construction Trades. Excerpt from Olt News/Bloomberg:
The LCFS credits, along with federal RIN D5 credits and tax credits for blenders, generate about $3.32 per gallon in subsidies for renewable diesel producers, covering production costs, according to Marijn Van der Wal in a June report. “It is a staggering amount,” he said. “You’ll make a lot of money as long as all of these grants come in.” Nik Weinberg-Lynn, director of renewable energy projects at Phillips 66, noted that the plant’s dock and rail access make it ideal for sourcing feedstocks like tallow, vegetable oils, and used cooking oils. The facility’s two hydrocrackers and abundant hydrogen supply are crucial for conversion, and its location aligns with high demand areas, especially California’s large renewable diesel market. “California’s renewable diesel market is certainly the largest in the world,” he said. However, Van der Wal mentioned challenges due to market saturation, with many projects proposed and existing suppliers like Neste SA and Valero Energy locking down much of the feedstock, leaving less for new entrants. Phillips 66 is optimistic about sourcing enough raw materials despite these challenges. “We strongly believe, although it will be a challenge, that there is enough,” Weinberg-Lynn stated. READ MORE Nearly 55,000 articles in our online library!
Access articles using the categories and tags below, covering nearly 50,000 indexed items. Advanced Biofuels USA Policy Statements and Handouts!
FREE Subscription! Includes events calendar, policy updates, and educational newsletters #J-18808-Ljbffr