Phillips 66: Rodeo conversion project to begin operations in Q1
February 1, 2024
BY Erin Voegele
Phillips 66 on Jan. 31 confirmed that the renewables conversion of its Rodeo, California, refinery is nearing completion. The facility will shut down crude oil operations in February and is expected to begin producing renewable fuels during first quarter of this year. Company officials discussed the project during a fourth quarter earnings call, held Jan. 31.
Phillips 66 made a final investment decision to move forward with the conversion project in May 2022. At that time Phillips 66 explained that 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. Once fully operational, the facility is expected to have the capacity to produce more than 50,000 barrels per day (800 MMgy) of renewable fuels, including renewable diesel, renewable gasoline and sustainable aviation fuel (SAF).
During the earnings call, Rich Harbison, executive vice president of refining at Phillipps 66, explained that the company plans to shut down the facility in February. That shutdown will allow the company to tie in the common utilities for one of the hydrocrackers that is currently in the conversion process, he said. That hydrocracker is expected to begin operations in March and quickly ramp up to approximately 50 percent of the conversion project’s expected capacity. In April, the company will finish work on the feedstock pretreatment unit (PTU) and continue the conversion of the second hydrocracker system, Harbison added. That work will be complete the following month, with commissioning expected to continue into May. Optimization work will continue, and the facility is expected to be operating full run rates by the end of the second quarter, he added.
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Harbison also discussed the types of feedstocks the Rodeo facility will process. He said the facility will likely start off processing “easier” feedstocks, such as used vegetable oils, some used cooling oils and neat vegetable oils. As the PTU begins operations, the company plans to start introducing lower carbon intensity (CI) feedstocks, such as fats, greases, and tallows. Those lower-CI feedstocks are expected to be introduced into the facility towards the second half of the second quarter, he said, with use expected to increase as the company becomes more comfortable with the operation of the PTU the impacts of those feedstocks inside the processing units.
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