How Phillips 66 uses integration in the energy transition 

Phillips 66’s integrated model uniquely positions the company for success in the energy transition, Phillips 66 EVP of Commercial and Marketing Brian Mandell said recently. Mandell participated in a keynote fireside chat at the Reuters Global Energy Transition Conference in New York City last month, discussing integration across the Phillips 66 value chain and how it helps the company pursue lower-carbon opportunities. The discussion also included a new partnership as an example of how Phillips 66 is unlocking that value.

“What’s interesting about our integrated system is you can take assets and leverage them for new opportunities,” Mandell said. “We’re focused on both traditional energies and also emerging energies, particularly renewable fuels.”

Mandell mentioned Sustainable Aviation Fuel (SAF) as an example, announcing a new deal with British Airways. The airline has received 5 million gallons of neat SAF from Phillips 66 through June at Los Angeles International Airport. The deal joins a growing list of other agreements the company has recently made.

“We were the first refinery in the UK to produce SAF at scale, and in 2022, we did a deal with British Airways to sell them that product,” Mandell said. “Last year we announced a deal with United at Chicago O’Hare International Airport.”

Setting Phillips 66 apart
Mandell also highlighted the transformation of the company’s San Francisco refinery, which now runs 50,000 barrels a day of feedstock.

“We saw an opportunity to convert that refinery into a renewable diesel and sustainable aviation fuel refiner,” said Mandell, referring to the renamed Rodeo Renewable Energy Complex. “Rodeo is part of our newest segment, our renewables segment, and is a great example of how we are evaluating opportunities for lower-carbon solutions.” Part of Phillips 66’s integrated model also includes a commercial organization that focuses on “finding the right feedstock, the right price, at the right time to make sure what the plant needs, we have,” Mandell said.

Mandell explained that optimizing plants by running the best suited feedstock is how Phillips 66 unlocked other opportunities. This allows for the most efficient slate for a refinery while staying customer-centric. 

Mandell provided an example of California’s desire for renewable diesel, where Phillips 66 supplies over 600 76^® branded stores. “Our integrated model can take renewable diesel to the end consumer. We’re constantly trying to get the product all the way through that last mile.”

Collaboration is necessary 

Effort by various stakeholders is needed to continue the development and implementation of renewable fuels, said Mandell. Using SAF as an example, he noted it is difficult to invest and innovate with changing policies, thus calling for more collaboration.  

“We’re going to need airlines, shippers, airports, producers and the government to all work together to develop [the SAF] market,” said Mandell. “We’re historically a traditional energy company, but our view is that we need all forms of energy.”