Phillips 66+NextEra: Historic Fossil Fuel Refiner Teams with Renewable Developer on 30-MW Solar Facility
A former oil refinery along San Francisco Bay is now producing renewable diesel and will be powered by a nearby solar farm currently under construction.
Refining and gas marketing firm Phillips 66 is working with a subsidiary of NextEra Energy Resources on the 30.2-MW solar project. Phillips 66’s Rodeo Renewable Energy Complex, converted from fossil fuel refining, began producing renewable diesel and sustainable aviation fuel (SAF) earlier this year.
NextEra Energy Resources will build, own and operate the solar farm, to be located on approximately 88 acres owned by Phillips 66. The renewable energy could reduce grid power demand at the Rodeo Renewable Energy Complex by 50% annually while avoiding an estimated 33,000 metric tons of carbon dioxide emissions per year.
The solar farm is poised to be operational early next year.
“This project will not only benefit Phillips 66’s operations and the customers who rely on its renewable fuels but also demonstrates how renewable energy can integrate seamlessly into industrial operations,” said Rebecca Kujawa, president & CEO of NextEra Energy Resources, in a statement.
The solar farm on the land by Rodeo Renewable Energy Complex will include more than 70,000 modules and is designed to generate close to 60,000 MWh of carbon-free electricity per year.
As for Phillips 66, its reinvented Rodeo Refinery near San Francisco is now producing close to 27,000 barrels of renewable diesel per day (bpd), with a goal toward achieving a rate of 800 million gallons annually (50K bpd) by the end of 2025’s second quarter.
“The project advances Phillips 66’s long-held strategy to expand our renewable fuels production, lower our carbon footprint and provide reliable, affordable energy while creating long-term value for our shareholders,” Rich Harbison, the company’s executive vice president of refining, said when the Rodeo Renewable Energy Complex entered commercial operations in April.
Earlier this month, United Airlines announced an agreement under which Phillips 66 will supply at least three million gallons of SAF for use at Chicago O'Hare International Airport. The deal with United also includes 600,000 gallons for the airline at Los Angeles International Airport by the end of this year.
Renewable diesel and sustainable aviation fuel are bio products refined from waste streams such as animal and vegetable fats and oils. The biofuels help remove methane emissions from the environment.
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Phillips 66 is one of the oil and gas industry’s long-running brands, dating back to when Frank Phillips founded Phillips Petroleum Co. in 1917 in Bartlesville, Oklahoma. The oilfield drilling and production soon expanded into refining, marketing and transportation under the Phillips 66 brand, adding the tie-in to the Route 66 roadway.
Phillips Petroleum merged with Conoco Inc. to become ConocoPhillips in 2002. Ten years later, the company’s leaders decided to split the refining and pipeline side into Phillips 66, while ConocoPhillips focused on pure-play oil and gas production.