Energy company Phillips 66 announced today plans to invest approximately $850 million in Rodeo Renewed, a project to convert its San Francisco oil refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. Commercial operations are expected to begin in 2024.

Upon completion of Rodeo Renewed, the converted facility will no longer process crude oil and will use waste oils, fats, greases and vegetable oils instead to produce initial 800 million gallons per year (over 50,000 barrels per day) of renewable transportation fuels, including renewable diesel, renewable gasoline and sustainable aviation fuels (SAF).

According to the company, the estimated outcomes of the production of these fuels include reducing lifecycle carbon emissions by about 65%, cutting criteria pollutant emissions at the site by 55% and water use by 160 gallons per year.

The converted facility will secure renewable feedstocks from local, domestic and international sources and supply renewable fuels to California, helping the state achieve its environmental goals, and to other markets.

Greg Garland, Chairman and CEO of Phillips 66, said:

“Rodeo Renewed stands to play a major role in helping us lower our carbon footprint as we continue to provide reliable, affordable energy. 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.”

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