Marathon Petroleum Corp. on Oct. 31 reported that the renewable diesel joint venture at its Martinez refinery in California is expected to be operating at its full 730 MMgy capacity by the end of the year.

Mike Hennigan, CEO of Marathon, discussed the project and Marathon’s other renewable initiatives during the company’s third quarter earning call. 

The Martinez project is being developed in partnership with Neste. The biorefinery reached full Phase I production capacity of 260 million gallons per year during the first quarter of 2023. Phase II activities to add a feedstock pretreatment unit and boost capacity to 730 MMgy began earlier this year.

“The Martinez renewable fuel facility is being delivered safely, on time, and on budget—and by the end of 2023, the facility is expected to produce 730 million gallons per year,” Hennigan said during the earnings call. “At that point, Martinez will be among the largest renewable diesel facilities, with a competitive operating profile, robust logistics flexibility, and advantaged feedstock slate, and should benefit from the global strategic relationship with Neste.”

Hennigan also noted the company’s 180 MMgy renewable diesel facility in Dickinson, North Dakota, is operating well. “The facility processed 75 percent advantaged feeds during the third quarter,” he said. The nearby Spiritwood soybean processing plant, developed via a joint venture with ADM, is nearing completion and is expected to deliver enough vegetable oil to produce approximately 75 MMgy of renewable diesel. 

In addition to Marathon’s activities in the renewable diesel space, Hennigan said the company is also advancing early-stage developments through its interests in low carbon intensity renewable natural gas (RNG) and other small-scale investments. He said those projects will help lower the carbon intensity of the company’s operations and the products it supplies. 

Marathon in March acquired a 49.9 percent interest in LF Bioenergy, and emerging U.S.-based RNG producer. Dave Heppner, senior vice president of strategy and business development at Marathon, commented on the LF Bioenergy acquisition during the earnings call, noting the company currently plans to build out 13 dairy RNG projects.