Midstream and refining firm Phillips 66 has made the final investment decision to begin the conversion of its San Francisco Refinery in Rodeo, California to a renewable fuels facility.
The Rodeo Renewed project, estimated to cost $850 million, will produce renewable transportation fuels, including renewable diesel, renewable gasoline and sustainable aviation fuel. Once the project is complete, the facility will initially produce 800 million gallons per year of renewable transportation fuels.
The Contra Costa County has granted approval for the project and commercial operations are expected to begin 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.”
The production of renewable transportation fuels is expected to help reduce lifecycle CO2 emissions by about 65%, on-site criteria pollutant emissions by 55% and water usage by 160 million gallons annually.
The project will involve the construction of pre-treatment units and repurposing of hydrocracking units. The existing flexible logistics infrastructure will be used to secure renewable feedstocks from local, domestic and international sources. This infrastructure will also be leveraged to supply the fuel to California and other markets.
