Houston-based Phillips 66 has bolstered its burgeoning renewable fuel projects portfolio with an investment in an Iowa feedstock plant.
Phillips 66 recently announced that it would have a minority ownership in Shell Rock Soy Processing (SRSP) in Shell Rock, IA. The companies also agreed to purchase 100% of the plant’s soybean oil production to convert into renewable fuels.
Construction of the plant is still waiting on state and local approval. Once complete, the project could o yield about 4,000 b/day of soybean oil.
Along with the oil, the SRSP would produce at least 900,000 tons each year of soybean meal and hulls for livestock feed. In addition, the plant is near various rail options with direct access to diverse markets, Phillips 66 said.
Phillips 66 in January formed the Emerging Energy organization, whose focus is to commercialize emerging energy technology within the portfolio. Among the major projects to move forward this year is Rodeo Renewed, designed to transform the San Francisco Refinery in Rodeo, CA, into a renewable fuel plant by 2024. The company expects to complete the diesel hydrotreater conversion in mid-2021. When fully converted, production could surpass 50,000 b/d.
Capital expenditures for 2021 have been reduced year/year to $1.7 billion from $3.1 billion. In the fourth quarter conference call, CEO Greg Garland said about $1.1 billion of sustaining capital for 2021 is to be directed toward reliability, safety and environmental projects, with $600 million targeting “in-flight” projects, investments and renewable fuels.
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