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While One Biofuel Producer Goes Full Throttle, Others Ponder the Market
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Phillips 66 Rodeo Facility now produces 50,000 barrels a day of renewable fuel
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While one major renewable fuel producer announces a milestone in production, two others take a more speculative stance.
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Two years after it began, the permanent conversion of Phillips 66's San Francisco Bay-area refinery from handling crude oil to producing renewable fuels is now complete. Known as the Rodeo Renewable Energy Complex, the plant has reached full output capacity of 50,000 barrels of renewable diesel and/or sustainable aviation fuel (SAF) a day.

The facility includes new pre-treatment units to process feedstocks such as used cooking oil, fats, and greases. It became operational in March with an output of 30,000 barrels of renewable fuel a day.

Meanwhile, two other major fuel producers—bp and Shell—have sent mixed signals to the sustainable fuel market. UK-based bp reported that, while it has agreed to take full ownership of Bunge Bioenergia—its Brazilian biofuel joint-venture and one of the country’s largest biofuel producers—the company is scaling back plans for development of new SAF and renewable diesel biofuels projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression. Bp said the moves are aligned with its drive to simplify its portfolio, with a focus on value and returns.

Shell last week revealed it is pausing construction at its Rotterdam biofuels facility to “address project delivery and ensure future competitiveness given current market conditions.” It noted that low-carbon fuels remain a key part of its strategy to help the company and its customers profitably decarbonize.

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