Phillips 66 and REG Plan Renewable Diesel Plant on West Coast
Planning is underway for construction of a large-scale renewable diesel plant on the U.S. West Coast, announced Phillips 66 and Renewable Energy Group.
The plant would utilize REG’s proprietary “BioSynfining” technology to produce renewable diesel fuel. Planned feedstocks include a mix of waste fats, oils and greases, including regionally-sourced vegetable oils, animal fats and used cooking oil, the companies said in a Nov. 1 statement.
“REG is excited to be working with a leading refiner, Phillips 66, on a project that has the potential to significantly expand biofuel production in Washington state and provide low-carbon fuel markets with products that are in significant demand on the West Coast,” said Randy Howard, CEO of REG, based in Ames, Iowa. “We look forward to working with state and local stakeholders to facilitate development of this important project and increase the supply of low-carbon fuels in the region.”
The new facility would be constructed adjacent to the Phillips 66 Ferndale refinery in Washington state. The Ferndale refinery offers existing infrastructure, including tank storage, a dock, and rail and truck rack access.
“The proposed facility’s strategic location in Washington state would enable us to move renewable fuels more efficiently to support West Coast and international fuel market demand,” said Brian Mandell, senior vice president, marketing and commercial, Phillips 66.
The announcement follows more than a year of collaboration between Phillips 66 and REG related to site selection and preliminary engineering. The companies expect to make a final investment decision in 2019. If approved, production at the new facility would be expected to start in 2021, according to the statement.
REG owns and operates 13 biomass-based diesel refineries, with a combined production capacity of 565 million gallons per year. This includes REG Geismar, a 75-million-gallon capacity plant in Louisiana. REG’s 100-million-gallon per year Grays Harbor biodiesel plant, its largest biorefinery, is also located in Washington state.
Phillips 66 is a diversified energy manufacturing and logistics company with a portfolio of midstream, chemicals, refining, and marketing and specialties businesses. The company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,200 employees.