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Rodeo Renewed, the Phillips 66 project expected to transform the company’s San Francisco Refinery in Rodeo, Calif., into one of the world’s largest renewable fuels facilities, stands to reduce facility emissions, preserve well-paid jobs and help California meet both its demand for transportation fuels and its environmental goals.

Those are the key takeaways outlined by Contra Costa County in a recently released draft environmental impact report, a requirement of the project’s permitting process under the California Environmental Quality Act. The report represents an important milestone for Rodeo Renewed toward securing the necessary permits because it provides the public with the opportunity to review the document and provide input to the county.

“Phillips 66 and the Rodeo Renewed team are encouraged by the publication of the draft EIR and excited to reach the public phase of this project,” said Rich Harbison, Vice President of the San Francisco Refinery. “We believe the draft EIR demonstrates that Rodeo Renewed stands to improve local air quality by reducing emissions, preserve family-wage jobs and help California achieve its environmental goals by locally producing a renewable fuel with lower lifecycle carbon emissions.”

With Rodeo Renewed, Phillips 66 aims to pivot its Rodeo Refinery away from processing crude oil, instead using a variety of renewable feedstocks to produce lower-carbon transportation fuels by 2024. Upon approval and after conversion, the facility will have an initial production capacity of 800 million gallons per year (52,000 barrels per day) of renewable diesel, renewable gasoline and sustainable aviation fuel, also known as SAF.

Renewable fuels from the converted facility, which after Rodeo Renewed is operational will produce up to 1 billion gallons per year (67,000 BPD), stand to slash lifecycle carbon emissions by an estimated 65%. That’s the equivalent of taking 1.4 million cars off California roads each year.

Projected environmental and economic benefits of the Rodeo Renewed conversion outlined in the draft EIR include:

• Reducing stationary criteria pollutant emissions by more than 50%, including 80% in sulfur oxides, 33% in nitrous oxides and 20% in particulate-matter emissions  
• Cutting water usage at the facility by 160 million gallons per year
• Creating more than 500 construction jobs, to be filled using local union labor
• Preserving more than 650 family-wage jobs, including full-time employees and contractors
• Helping California meet regional demand for renewable and conventional transportation fuels while assisting the state in achieving its environmental goals, including carbon neutrality by 2045.

The draft EIR was prepared pursuant to CEQA requirements by Contra Costa County, which is the lead agency and is responsible for the report’s adequacy and objectivity. Phillips 66 collaborated with the county by providing all necessary information regarding Rodeo Renewed.

The public is invited to review the draft EIR and provide comments to the county by 4 p.m. PST on Dec. 17.

Members of the public who wish to express their support for Rodeo Renewed are invited to visit this site. To learn more about the project, visit www.RodeoRenewed.com.

“We invite the public to learn more about our project,” said Nik Weinberg-Lynn, Manager, Rodeo Renewable Energy. “We believe it’s the right project at the right time for Contra Costa County and for California.”

Phillips 66 has the green light from the local county to proceed with Rodeo Renewed, the project to transform its San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels plants.   

The Contra Costa County Board of Supervisors voted Tuesday to approve a land-use permit for the project, which was first approved unanimously by the county’s Planning Commission in late March. The latest vote paves the way for Phillips 66 to make a final investment decision on Rodeo Renewed in the coming weeks.  

“We are extremely pleased with the county’s decision on Rodeo Renewed, a project that stands to improve local air quality, preserve family-wage jobs and help California meet its climate goals,” Phillips 66 San Francisco Refinery Vice President Rich Harbison said. “We thank the Planning Commission and Board of Supervisors for their due diligence, and we also extend our sincere gratitude to our employees and contractors, local labor unions, community leaders, businesses and neighbors for supporting our vision for Rodeo.” 

Refinery employees and contractors celebrated the occasion Wednesday morning by raising the Rodeo Renewed and 76^® Renewable Diesel flags outside Rodeo’s administrative building, where Harbison again thanked them for their support for the project and steadfast commitment to operating excellence.   

Rodeo staff worked tirelessly over the past 20 months to engage with neighbors, community leaders and other key stakeholders, hosting more than 50 virtual and in-person events to share information on the project and its benefits. The efforts resulted in more than 2,000 letters of support for Rodeo Renewed being submitted to the county ahead of the permit votes.   

Phillips 66 first announced plans to pivot its Bay Area refinery away from processing crude oil and toward renewables on Aug. 12, 2020. The company filed for a land-use permit that same day with Contra Costa County, home to the refinery and the lead agency for the project under California Environmental Quality Act guidelines.  

The county’s Planning Commission voted 6-0 on March 30 to approve the permit for Rodeo Renewed. The vote was appealed by project opponents, triggering a special meeting and final vote by the Board of Supervisors.   

With Rodeo Renewed, Phillips 66 intends to use a variety of renewable raw materials — fats, oils and greases — to produce lower-carbon transportation fuels beginning in early 2024.  

The converted facility stands to have an initial production capacity of 800 million gallons per year (50,000 barrels per day) of renewable diesel, renewable gasoline and sustainable aviation fuel.  

Production of these fuels is projected to slash lifecycle carbon emissions by an estimated 65% — the equivalent of taking 1.4 million gasoline-powered cars off California roads each year. Rodeo Renewed will cut criteria pollutant emissions at the site by 50% and water use by 160 million gallons per year.  

The conversion will create more than 500 construction jobs and preserve more than 650 jobs, including full-time employees and contractors.  It will also help California meet both its demand for renewable and conventional transportation fuels while assisting the state in achieving its environmental goals, including carbon neutrality by 2045.  

“Rodeo Renewed is the right project for California at the right time, a perfect example of what a real, just energy transition can be about,” Harbison said. “The future is now.” 

Visit rodeorenewed.com for more information. 

Phillips 66 made a final investment decision Wednesday to move forward with Rodeo Renewed, the project to convert its San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. The project, which recently received approval from Contra Costa County, is expected to cost approximately $850 million and begin commercial operations 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.”

Upon completion of Rodeo Renewed, the converted facility will no longer process crude oil and instead use waste oils, fats, greases and vegetable oils to produce an initial 800 million gallons per year (over 50,000 barrels per day) of renewable transportation fuels, including renewable diesel, renewable gasoline and sustainable aviation fuel. Production of these fuels is projected to reduce lifecycle carbon emissions by approximately 65% — the equivalent of taking 1.4 million cars off California roads each year. Rodeo Renewed is also expected to cut criteria pollutant emissions at the site by 55% and water use by 160 million gallons per year.

The scope of the project includes the construction of pre-treatment units and the repurposing of existing hydrocracking units to enable production of renewable fuels. The converted facility will leverage its flexible logistics infrastructure to secure renewable feedstocks from local, domestic and international sources and supply renewable fuels to California and other markets.

The facility conversion will create 500 construction jobs and preserve more than 650 jobs, including full-time employees and contractors. It is poised to help California meet demand for transportation fuels while assisting the state in achieving its environmental goals.

Phillips 66 is going big on renewables in California.

The company on Aug. 12 unveiled plans to convert the San Francisco Refinery’s Rodeo facility into the world’s largest renewable fuels plant in support of growing demand for these high-value products and California’s environmental goals.

Click here to read the news release.

Dubbed Rodeo Renewed, the project will reconfigure Rodeo to produce 800 million gallons per year of renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oils, fats, greases and soybean oils. If approved, production of these fuels is expected to begin in early 2024.

“Phillips 66 is taking a significant step with Rodeo Renewed to support demand for renewable fuels and help California meet its low-carbon objectives,” Phillips 66 Chairman and CEO Greg Garland said. “We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from Rodeo Renewed will be an important part of that mix.”

Phillips 66 also announced plans to shut down its Santa Maria refining facility in Arroyo Grande, California, starting in 2023 and its carbon plant in Rodeo later that same year. Santa Maria is currently part of the Phillips 66 San Francisco Refinery and supplies Rodeo with intermediate products via a 200-mile pipeline. Associated crude oil pipelines will be taken out of service in phases starting in 2023.

Rodeo Renewed is a major addition to Phillips 66’s portfolio of renewable and alternative fuel projects, which include other renewable diesel investments on the West Coast and in the United Kingdom, hydrogen fueling stations in Switzerland and green hydrogen production in the U.K.

Renewable diesel is a “drop-in” replacement fuel that is chemically identical to crude oil-derived diesel but with lower carbon intensity. Renewable gasoline and sustainable jet fuel are also considered “drop-in” replacements when blended to make low-carbon, low-sulfur, high-performing fuels.

The conversion is expected to significantly improve Rodeo’s profitability while lowering its operating costs. It is also expected to reduce the plant’s greenhouse gas emissions by 50%, and enable Phillips 66 to cover its California Low-Carbon Fuel Standards obligations.

Phillips 66 will construct pre-treatment units, repurpose existing hydrocrackers and leverage existing logistical infrastructure to achieve the reconfiguration, which will yield 680 million gallons per year (44,000 barrels per day) of renewable transportation fuels.

Rodeo already is adding 120 million gallons per year (8,000 BPD) of renewable diesel through a hydrotreater conversion project set for startup by mid-2021. That project will use soybean oil as feedstock.

“(Rodeo Renewed) is a great example of how Phillips 66 is making investments in the energy transition that will create long-term value for our shareholders,” Garland said.

To learn more about the project, visit RodeoRenewed.com.

For the Phillips 66 San Francisco Refinery in Rodeo, 125 never looked so good. 

The oldest refinery in operation on the U.S. West Coast is marking the milestone anniversary with a nod to its past and a commitment to a lower-carbon future with Rodeo Renewed, an ambitious project to transform the refinery into one of the world’s largest renewable fuels plants. 

“We take great pride in celebrating 125 years in Contra Costa County; our roots here run deep,” Phillips 66 San Francisco Refinery General Manager Rich Harbison said. “We look forward to continuing to make good on our vision of providing energy and improving lives and playing a leading role in California’s energy future.” 

The refinery kicked off a year-long celebration Wednesday by raising a commemorative flag outside its administration building. Refinery leadership was presented with a plaque by the Bay Front Chamber of Commerce and the refinery’s Community Advisory Panel, which includes residents and representatives from local businesses and agencies. 

First barrel processed in February 1896 

The San Francisco Refinery traces its beginnings to the late 19th century and the Union Oil Company, a then-nascent enterprise that settled on an 18-acre site in present-day Rodeo to build a refinery, just as California’s crude oil production boomed.  

The refinery, originally named Oleum, processed its first barrel of crude on Feb. 24, 1896, according to at least one newspaper report. It was geared to make asphalt but also well equipped to produce other in-demand products at the time, including kerosene and fuel oil. Its initial crude throughput capacity was between 600 and 1,200 barrels per day.  

The rise of the internal combustion engine in the automobile changed the demand landscape, and the refinery grew and evolved into a key supplier of transportation fuels and lubricants. It continues to play a major role in helping California meet its fuel demand.  

Today’s 120,000-BPD San Francisco Refinery consists of two facilities located 200 miles apart. The Santa Maria plant in Arroyo Grande processes crude oil into semi-refined products and ships them via pipeline to the Rodeo plant for upgrading. Santa Maria celebrates its 66th anniversary later this year. 

Rodeo also operates a carbon plant near the refinery, while Santa Maria produces petroleum coke and sulfur. 

Rodeo Renewed slated for startup in 2024 

The next step in the San Francisco Refinery’s evolution is its foray into renewable fuels. Later this year, Rodeo plans to begin production of up to 9,000 BPD of renewable diesel. Rodeo Renewed, the much-larger project currently in the permitting stages, will aim to pivot the refinery completely away from crude oil processing and turn it into a renewable fuels plant.  

Pending receipt of county authorizations, work on the proposed complex is slated to be completed for startup in early 2024. The converted complex is expected to produce 800 million gallons per year — or more than 50,000 BPD — of renewable diesel, renewable naphtha and sustainable aviation fuel. It will do so from feedstocks such as used cooking oil, animal fats, greases and soybean oils and in support of growing demand for these fuels and California’s environmental goals. 

The conversion is expected to cut the plant’s greenhouse gas emissions by 50%, contributing to cleaner air in the Bay Area. The refinery also is pursuing additional projects such as solar to power its processes.  

“As we celebrate this milestone anniversary, we’re excited about the transformation we’re about to embark on,” Harbison said. “We also want to continue to be a model for safe, reliable and environmentally responsible operations — and a trusted partner in our community. 

“As we honor the legacy of our predecessors, we want to set the facility on a path to make the next 125 years the best ones yet.”  

Phillips 66 is ushering in the new year with long-term commitments to building a lower-carbon business platform and to advancing its strategy with financial discipline, Chairman and CEO Greg Garland said Thursday at the Goldman Sachs Global Energy Conference.

The company is launching a new organization dubbed Emerging Energy whose focus will be on commercializing and implementing emerging energy technology within Phillips 66 operations and portfolio of assets, Garland told investors and securities analysts at the virtual event.

“The ultimate goal here is to have an Emerging Energy business that will stand beside our Midstream, our Chemical, our Refining and our Marketing and Specialties businesses,” Garland said.

Phillips 66 continues to eye the back half of 2021 for economic recovery to approach midcycle conditions, Garland said. The company expects fewer growth opportunities in the near term and has adjusted its capital allocation priorities accordingly.

“The first dollar is still going to go toward sustaining capital; the next dollar will continue to fund the dividend,” Garland said. “Paying down debt is going to emerge as a priority as we see cash generation recover, and we also would like to resume share repurchases.”

Phillips 66 will focus on advancing existing projects as part of its recently announced $1.7 billion capital program. These include Rodeo Renewed, a project to transform the San Francisco Refinery into one of the world’s largest renewable fuel plants by 2024.

Phillips 66 is securing feedstock for the company's growing portfolio of renewable fuels projects by investing in a new soybean-processing plant in Iowa.

The company’s investment gives it a minority ownership stake in Shell Rock Soy Processing, named after the nearby town in northeast Iowa where it will be built. The plant, which is pending state and local approvals, will yield approximately 4,000 barrels per day of soybean oil. Phillips 66 has an agreement to purchase 100% of the plant’s soybean oil production that will be used to make renewable fuels.

“This strategic investment expands our reach into the renewable diesel value chain and provides secure feedstock,” said Brian Mandell, Phillips 66 Executive Vice President of Marketing and Commercial. “It also reflects our commitment to play an important role in a lower-carbon energy future.”

The company unveiled plans last year to convert its Rodeo Refinery into one of the world’s largest renewable fuels facilities, capable of producing 800 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel from used cooking oils, fats, greases, vegetable oils and other feedstocks. The project, subject to permits and approvals, would be completed in early 2024.

“Phillips 66 represents what we believe to be the premier renewables platform, with a superior business plan and fantastic long-term prospects,” said Shell Rock Soy Processing CEO Mike Kinley. “As we reviewed our options for offtake partners, it was clear to us that Phillips 66 was the partner of choice for the long term.” 

In addition to the soybean oil, Shell Rock Soy Processing will produce more than 900,000 tons per year of soybean meal and hulls for livestock feed. The plant is geographically advantaged, located in one of the top soybean production states with rail options that provide direct access to diverse markets. It is targeting an in-service date of December 2022.

Phillips 66 and Southwest Airlines have signed a memorandum of understanding to advance the commercialization of sustainable aviation fuel, focusing on public awareness and research and development. The memorandum of understanding also sets the framework to explore a future supply agreement involving Phillips 66’s Rodeo Renewed project in California and highlights the commitment by both companies to a sustainable energy future.

Sustainable aviation fuel, or SAF, is a lower carbon-intensity fuel that can be produced from renewable feedstocks such as waste oils, fats, greases and vegetable oils. It is a drop-in fuel, meaning it can be used in existing aircraft engines and airport fuel infrastructure.

“Phillips 66 has a long history of driving innovation in the commercial and general aviation industry,” said Brian Mandell, Executive Vice President of Marketing and Commercial for Phillips 66. “We are excited to work with Southwest Airlines to find ways to help achieve its lower-carbon goals and to develop a path forward for sustainable aviation fuel that benefits all segments of the industry.”

Phillips 66 is a major U.S. refiner and supplier of jet fuel and aviation gasoline. The memorandum of understanding aims to leverage the company’s expertise in refining, distribution and technical commercialization of transportation fuels as well as its portfolio of renewable energy projects.

The latter includes Rodeo Renewed, the proposed conversion of the San Francisco Refinery in Contra Costa County, California, into one of the world’s largest renewable fuels facilities, capable of producing an initial 800 million gallons per year of renewable fuels. The project, subject to permits and approvals, is expected to be completed in early 2024.

“Southwest Airlines welcomes projects like Phillips 66’s proposed Rodeo refinery conversion to scale up the SAF industry, bringing lower-carbon SAF to market in meaningful quantities and thus helping Southwest meet our carbon-reduction goals,” said Stacy Malphurs, Southwest’s Vice President of Supply Chain Management & Environmental Sustainability. “Given Southwest’s extensive operations in the Bay Area and throughout California, we’re ideally positioned to benefit from any SAF production by Phillips 66 at Rodeo.”

Southwest is the largest carrier of air travelers to, from and within California. Its operations in the state include a major East Bay hub at Oakland International Airport. The carrier is a member of Airlines for America, the industry trade organization representing the leading U.S. airlines that last month announced the commitment of its member carriers to work to achieve carbon neutrality by 2050. The pledge includes efforts to advance the rapid expansion and deployment of SAF to make 2 billion gallons available to U.S. aircraft operators by 2030.

Chairman and CEO Greg Garland sees Phillips 66 generating strong cash flows of $6 billion to $7 billion this year.

“We’re very constructive,” said Garland, addressing the virtual Goldman Sachs Global Energy and Clean Technology Conference on Jan. 5. “The supply and demand dynamics look very favorable coming into 2022.”

Garland was joined by President and COO Mark Lashier, Executive Vice President and CFO Kevin Mitchell and Jeff Dietert, Vice President of Investor Relations. He said Phillips 66 plans to pay down debt and would like to resume share repurchases this year after suspending them in 2020 amid the onset of COVID-19.

Phillips 66 executives are optimistic for strong financial performances in Refining, Midstream, Marketing & Specialties and Chemicals.

“The Midstream business continues to grow,” said Mitchell, adding that Marketing is on track for “maybe our best-ever year in that segment” in 2021.

As for Chemicals, Lashier predicted robust margins continuing into next year as the industry absorbs new capacity coming online. “We continue to see strong global economic activity,” he said. “So we think it’s a great time.”

The team also discussed the conversion of the Rodeo Refinery to use a wide range of renewable feedstocks. The Rodeo Renewed project will initially produce more than 800 million gallons of renewable fuels, helping the company meet its commitment of a 30% reduction in emissions intensity involving existing assets.

“We're sitting right there on the water in San Francisco,” said Lashier. “We've got the world at our doorstep to get the right feedstocks in there, and we've got a very low capital base because we will be able to convert those existing assets.”

Toward that end, the company plans to repurpose its portfolio to incorporate lower-carbon alternatives such as hydrogen, batteries and carbon capture.

Phillips 66 sees Emerging Energy as a $2 billion business by the end of the decade.

“We’re part of the solution. We’re problem-solvers,” Garland said. “Energy has been a business of transition for 140 years, so this isn't really new to us.”