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Phillips 66 completes transition; bp and Shell reassess biofuel strategies

Phillips 66 completes transition; bp and Shell reassess biofuel strategies
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Aviation International News | Aviation International News

Two years after initiating the conversion, Phillips 66 has completed the transformation of its San Francisco Bay-area refinery from crude oil processing to renewable fuel production. The Rodeo Renewable Energy Complex now operates at full capacity, producing 50,000 barrels of renewable diesel and sustainable aviation fuel (SAF) daily.

The facility includes new pre-treatment units designed to process feedstocks like used cooking oil, fats, and greases. It began operations in March with an initial output of 30,000 barrels per day.

In contrast, two other major fuel producers have shown varied responses to the sustainable fuel market. UK-based bp has announced taking full ownership of Bunge Bioenergia, a Brazilian biofuel joint venture and one of the country's largest biofuel producers. However, bp is scaling back plans for new SAF and renewable diesel projects at existing sites. The company is pausing planning for two potential projects while continuing to assess three others for progression. According to bp, these decisions align with their goal to simplify their portfolio with a focus on value and returns.

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Shell recently disclosed it is halting construction at its Rotterdam biofuels facility to "address project delivery and ensure future competitiveness given current market conditions." Shell emphasized that low-carbon fuels remain integral to its strategy for helping both the company and its customers decarbonize profitably.

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