Phillips 66 will begin the conversion of its major petroleum refinery in the San Francisco area into one of the world’s largest renewable fuels facilities. Under discussion and consideration for nearly two years, the Rodeo Renewable project, named after the California town that is home to the refinery, will irreversibly modify the plant, rendering it unable to process crude oil in the future.
Plans call for the repurposing of existing equipment such as hydrocracking units and the construction of new pre-treatment units to enable renewable fuel production. The converted facility will leverage a flexible logistics infrastructure to accept feedstocks from local, domestic, and international sources.
The $850 million project received the green light from Contra Costa County earlier this month and is expected to begin commercial operations in the first quarter of 2024. Once fully operational, the production facility will process waste oils, fats, and greases to produce an initial 800 million gallons of renewable fuels a year. That includes sustainable aviation fuel.
“Rodeo Renewed stands to play a major role in helping us lower our carbon footprint as we continue to provide reliable, affordable energy,” explained Greg Garland, the fuel provider’s chairman and CEO. “This is a project that will help meet growing demand for lower-carbon fuels, preserve jobs, and support California in achieving its climate goals.”