What this means: This 30.2-megawatt facility sets new standards in integrating renewable energy into industrial operations.

• It reduces Rodeo’s grid power demand by 50%, avoiding 33,000 metric tons of carbon dioxide emissions annually.*
• It is designed to generate approximately 60,000 megawatt-hours per year of electricity, enough to power more than 23,000 electric vehicles each year.

Celebrating milestones: The solar facility was unveiled in December 2024 at a ribbon cutting with industry leaders and elected officials.

• Mark Lashier, Phillips 66 chairman and CEO, said, “Our collaboration with NextEra reduces carbon emissions at Rodeo, a facility dedicated to producing renewable fuels and one of the largest of its kind in the world.”

Powering Rodeo: Situated on 88 acres of land owned by Phillips 66, this is California’s largest on-site dedicated solar facility.

• “Instead of crude oil, we are processing fats, greases and vegetable oils to create renewable diesel and sustainable aviation fuel,” Lashier said.

Envisioning the impact: This solar facility underscores Phillips 66’s commitment to helping advance a lower-carbon future through initiatives accretive to shareholder value and enhancing the company’s energy infrastructure.

Highlighting the strategic opportunity, Lashier added, “We saw an opportunity in reducing our carbon footprint, save on utility costs, while at the same time producing reliable, affordable energy.”

*Calculation is based on the EPA’s AVoided Emissions and geneRation Tool (AVERT).

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As a producer of SAF, Phillips 66 said it is proud to support collaborations like this and that the company looks forward to contributing to the initiative. 

Collaborations between public and private sectors can drive the innovation needed in hard-to-decarbonize industries like aviation. Progress is also made possible by California’s climate programs, particularly the Low Carbon Fuel Standard, which incentivizes the development of renewable fuels and technologies. 

Phillips 66’s Rodeo Renewable Energy Complex in the San Francisco Bay area demonstrates the company’s role in supporting California’s climate goals by producing renewable diesel and sustainable aviation fuel. 

The company is dedicated to playing a meaningful role in the energy transition, Phillips 66 said, and to providing customers with lower-carbon solutions. 

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Sweeny Refinery Emergency Response Security Team Lead Ronnie Thompson, Sweeny Refinery Heavy Equipment operators, and Midstream Field Technician James Christian provided response assistance to the accident at State Highway 35 and FM 1459 in Brazoria County. Christian was on the scene as a member of the Sweeny Fire & Rescue volunteer department.

The 18-wheeler was overturned in a steep ditch with the driver pinned inside. Emergency responders used a heavy-duty wrecker for more than an hour to try to extract the driver, but they were unsuccessful. Emergency responders reached out to Thompson to request assistance of a crane to get the vehicle upright. Sweeny Refinery crane operators were on the scene within 10 minutes of approval. With the help of the crane, the driver was rescued and responsive. He was life-flighted to Memorial Hermann Hospital in Houston and is expected to recover.

Through the swift intervention of a trained network of local emergency responders, our Sweeny Complex Emergency Response Team and Sweeny Refinery Heavy Equipment operators, a man will return home.

“We want to extend our heartfelt thanks to our employees and the local responders for the critical role they played in this response and saving a life,” said Todd Denton, Phillips 66 Senior Vice President of Health, Safety and Environment and Field Operations Support. “This is a great example of how our ongoing training and collaboration with local response teams keeps our community safer.”

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“The facility conversion was moving forward like a high-speed train,” said Rhinehart, who has led several Phillips 66 refineries. “I had to get on the train and figure out how to lead the way.” 

Now vice president of the Rodeo Renewable Energy Complex, Rhinehart indeed figured it out, but not without help from a hard-working team.

We spoke to her about the facility’s conversion to one of the world’s largest renewable fuels facilities, which just achieved full production capacity.

1. You’ve managed refineries that produce traditional fuels at several Phillips 66 refineries. How is managing the Rodeo Renewable Energy Complex different?
   
   We had to build a renewables value chain at Phillips 66 from scratch. We gather the feedstock and transport it to the facility, and then we process it here at Rodeo. Prior to the full conversion of Rodeo, we started up Unit 250 in April 2021, which uses soybean oil as its primary feedstock. Now with the other units coming online, we can run renewable feedstocks such as greases, fats and used cooking oil.  Processing renewable feedstocks at this scale is such a new and emerging technology compared to traditional petroleum refining. The yield varies depending on these feedstocks, and the intervals in which we will replace catalysts are different than in traditional hydrotreating. There are many industry experts who know about fluidized catalytic cracking units or hydrocrackers, but there’s not an infinite number of experts who know about renewables.
   
   
2. What did it take to reach the company’s goal of 50,000 barrels a day by the end of the second quarter?
   
   We have executed a phased approach to Rodeo Renewed. In phase one, we completed the conversion of the first hydrocracker to process renewables. The next phase that took us to maximum capacity of 50,000 barrels per day was the conversion of the second hydrocracker. Phase three was getting our pre-treatment area online, which brings the business together because we can process a wider range of feedstocks with lower carbon intensity. That really puts us in a position to maximize the value of the business.
   
   
3. Rodeo Renewed was four years in the making. What were your main objectives during the process?
   
   Phillips 66 conceived the project in 2019 and announced it in 2020. I joined Rodeo in May 2022 shortly after we received the land use permit. We needed to secure air permits that would allow us to start construction. We were able to carry out some pre-construction activities in 2022 and began construction in January 2023 after receiving those permits. We simplified objectives for the team to ensure a successful transition. We had two major goals during this period: operate our facility in a safe and environmentally sound manner, and flawlessly execute our conversion. All work that anybody at this facility carried out had to be in service to those two goals.
   
   
4. How would you characterize the environmental benefits of the renewable energy complex?
   
   Compared to petroleum refining, producing renewable fuels reduces lifecycle carbon emissions by 8.5 million metric tons per year. That’s the equivalent of taking 1.4 million gasoline-powered cars off California roads each year. Also, the conversion cuts hazardous criteria air pollutant emissions by over 70% and greenhouse gas emissions by 38%. These are very substantial improvements that will help California meet its climate objectives.
   
   
5. Lots of people worked to make the project a reality — Commercial, Marketing, Emerging Energy and Major Projects, to name a few. Who are the unsung heroes?
   
   Full credit goes to the entire Rodeo workforce. We have a group of people from the Prepare to Operate, turnaround, maintenance, operations, technical, HSE, HR and optimization organizations who did the preparations for the turnaround, whether it was the scope development, execution scheduling or shutdown procedures. The fact that they have executed the event so flawlessly is amazing. This is the largest by cost, scope and schedule duration of any turnaround we’ve ever done at Phillips 66. It’s awe-inspiring what this team has done.

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Long known as the company’s Rodeo Refinery, and recently renamed the Phillips 66 Rodeo Renewable Energy Complex, the facility is producing 27,000 barrels a day of renewable diesel. The on-time startup capped a four-year project known as Rodeo Renewed that will make the refinery one of the world’s largest renewable fuels facilities.

“We are proud to announce this achievement at our Rodeo facility,” said Rich Harbison, Phillips 66 executive vice president of Refining. “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.”

The new Rodeo is on track to increase production rates to more than 800 million gallons per year (50,000 BPD) of renewable fuels by the end of the second quarter.

The facility can also produce renewable jet, a key component of sustainable aviation fuel, or SAF, with production expected to begin this quarter. Instead of fossil fuels, the plant produces fuels from mostly renewable feedstocks such as used cooking oil, fats, greases and vegetable oil.

Rodeo Renewed was first announced in August 2020, with the company targeting initial production in early 2024. Phillips 66 made a final investment decision to move forward with the project in 2022 after the Contra Costa County Board of Supervisors approved the land-use permit and amid growing demand for renewable diesel.

“People want to lower the carbon intensity of their fuels and to maintain their quality of life,” said Jolie Rhinehart, Rodeo Renewable Energy Complex vice president. “The result is that demand for renewable energy will continue to rise.”

Helping to grow that demand are states like California, Oregon and Washington, in addition to British Columbia, which have implemented low-carbon fuel standard incentives to achieve their climate goals.

As a world-class supplier of renewable fuels, the company’s Rodeo Renewable Energy Complex reduces lifecycle carbon emissions by approximately 65% by leveraging a premium geographic location, unique processing infrastructure and flexible logistics.

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For Sweeny, which lies 50 miles south of Houston, it was the third straight year winning AFPM’s highest honor. 

“Year after year, Phillips 66 shows up in AFPM’s top awards, and it’s a testament to the culture of our company that places importance on sending everyone home safe, every day, above everything else,” said Todd Denton, senior vice president, HSE, Projects and Field Operations Support.

AFPM’s Distinguished Safety Award is presented to eligible U.S.-based sites that demonstrate exemplary, long-term safety performance, program innovation and leadership.

Ponca City Refinery took Elite Platinum honors, which represents the top industrial sites among those who were in the running for a Distinguished Safety Award. Lake Charles Refinery secured Elite Gold, which recognizes facilities with safety performance in the top five percentile.

“I am extremely proud of our workforce at Sweeny, Rodeo, Lake Charles and Ponca City for maintaining the highest levels of operating excellence,” said Rich Harbison, executive vice president of Refining. “The national recognition is well deserved.”

In addition to the Distinguished Safety Award, Sweeny also garnered AFPM’s Innovation Award for the refinery’s annual Safety Days event, where workers get hands-on training by experienced coworkers on a variety of common safety systems within the refinery.

“Our employees own safety at Sweeny,” said Ben Way, Sweeny HSE manager. “We don’t have to ask them to be involved — they take the initiative. They are not afraid to speak up about ideas, safety issues or concerns.”

Rodeo was honored for a year in which it was converting its refinery into one producing renewable fuels. The Rodeo Renewable Energy Complex recently announced the start of commercial scale production.

“Our goal at Rodeo is to get everyone home safely,” said Jolie Rhinehart, Rodeo’s vice president. “Achieving that goal in a year is an exemplary achievement, but for Rodeo in 2023 it was a remarkable achievement.”

AFPM is a leading trade association for U.S. refiners and chemical manufacturers. The awards are part of a program developed by the AFPM Safety and Health Committee to promote safe operations in the refining and petrochemical industries. 

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That was the message delivered by Suresh Vaidyanathan, the company’s vice president of renewable fuels, at the Argus America Crude Summit in Houston on Jan. 24. He was joined by executives from other refiners operating in the U.S. on a panel discussion exploring refining in a low-carbon world.

“If anybody is well-positioned to supply energy and participate in the energy transition, it’s the refineries,” said Vaidyanathan, a chemical engineer with some 27 years of experience in the oil and gas industry. “We have the assets, mindset and experience.”

Phillips 66 is thinking differently about its refineries in terms of repurposing feedstocks, processes and products, he said. A prime example is the conversion of the San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. Rodeo Renewed is expected to start up by the end of the first quarter and will produce renewable diesel and sustainable aviation fuel.

Vaidyanathan also cited the company’s Humber Refinery, the first in the U.K. to produce biofuels and SAF at scale and the primary supplier of SAF to British Airways.

While Phillips 66 is committed to pursuing returns-focused projects that support the decarbonization of its operations, Vaidyanathan pointed to regulatory certainty and timely permitting as key factors that will determine the success and speed of the energy transition.

“We are well-positioned to provide lower-carbon solutions, not because we have to, but because it makes sense,” said Vaidyanathan. “We can support a well-paced energy transition while providing affordable and reliable energy at scale.”

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That was the message from Phillips 66 San Francisco Refinery Manager Jolie Rhinehart, who recently spoke at the Argus North American Biofuels, LCFS & Carbon Markets Summit in Monterey, Calif.

“People want to lower the carbon intensity of their fuels and to maintain their quality of life,” she said. “The result is that demand for renewable energy will continue to rise.”

At the summit’s keynote panel on the future of the North American biofuels market, Rhinehart explained how Phillips 66’s current efforts at its San Francisco Refinery are helping to prepare the company to meet rising demand.   

“We currently have a unit that processes up to 12,000 BPD of renewable feedstock to produce renewable diesel,” she said. “And we are converting our entire facility to process just renewable feedstocks into primarily renewable diesel and renewable jet that can be blended to produce sustainable aviation fuel.”  

These renewable feedstocks may include waste oils, fats, greases and vegetable oils. Renewable diesel is a drop-in fuel that can be used in any traditional diesel vehicle, while renewable jet must be blended with traditional petroleum jet to create a blended sustainable aviation fuel that is used to power aircraft.

The Rodeo Renewed project is expected to begin renewable fuels production by the first quarter of 2024 and will reduce lifecycle carbon emissions by approximately 65%.

Helping to grow demand for renewable fuels, said Rhinehart, are lower carbon intensity targets in places like California, Oregon, Washington and British Columbia, with the implementation of low-carbon fuel standard incentives.

While Rhinehart says there is still work to be done on regulatory reform to allow projects like Rodeo Renewed to have less hurdles to cross, she believes the market has quickly made substantial strides. “If you look back even one or two years ago, people were asking whether there would be sufficient quantities of renewable feedstocks available to supply Rodeo Renewed,” she said. “Actually, the renewable feedstocks market has continued to grow and expand in even this short timeframe.”

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At the STEAM Center inside the Boys and Girls Club of Lummi Nation, just outside the company’s Ferndale Refinery, children will learn how cedar is used to make indispensable items such as canoes, rope, fishing nets and baskets.

The upshot: expanded horizons in science, technology, engineering, arts and mathematics.

“It’s one of a kind,” said Jason Brockie, unit director at the club. “The parents are excited because of the potential of what their children are going to learn, how their kids are going to stay busy and how they’re going to essentially grow by learning new things.”

Phillips 66’s support of educational initiatives goes well beyond the Lummi. Across its portfolio, the company has contributed nearly $10 million and supported 45 local schools, school districts, colleges and technical schools. Many of these opportunities focus both on STEAM and young women, girls and underrepresented minorities.

But the Lummi initiative is unique. The third largest tribe in Washington with over 5,000 people, Lummi Nation is an important part of the Ferndale Refinery’s fence-line community. The state-of-the-art STEAM center itself serves six schools and three school districts.

Ferndale Refinery General Manager Carl Perkins said the company’s $250,000 investment in the STEAM Center is a milestone in its long-term relationship with its Lummi Nation neighbors.

“The center is impressive and well-designed,” said Perkins. “It will give students an opportunity for hands-on experiences in an environment that promotes learning, creativity and real-world problem solving.”

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The Sweeny Refinery on the Texas Gulf Coast captured AFPM’s Distinguished Safety Award – the industry’s top safety honor – for a second consecutive year. Bayway Refinery in New Jersey, Borger Refinery in West Texas and the San Francisco Refinery’s Santa Maria Plant notched Elite Gold awards, and Ponca City Refinery in Oklahoma took home Elite Silver honors.

“Safety is at the core of everything we do at Phillips 66,” said Todd Denton, Phillips 66 Senior Vice President of Health, Safety and Environment and Field Operations Support. “Congratulations to our five safety award winners and their employees and contractors. The recognition by AFPM is a testament to their and the company’s steadfast commitment to the safety of our people and safe operation of our assets in our communities each and every day.”

Sweeny, which is located approximately 65 miles southwest of Houston, also garnered AFPM’s Innovation Award for the refinery’s Maintenance Area Safety Team’s work with The Hand Safety Tool Company, LLC^TM to test a new tool to increase safety.

The Distinguished Safety Award is presented to eligible U.S.-based sites that demonstrate exemplary, long-term safety performance, program innovation and leadership. The Elite Gold Award is AFPM’s second-highest safety honor, and it recognizes facilities with safety performance in the top 5 percentile. The Elite Silver Award recognizes facilities with safety performance in the top 10 percentile.

Sweeny was one of only three sites to earn a Distinguished Safety Award for 2022. Nearly 250 AFPM-member refining and petrochemical facilities were eligible to apply for the safety awards.

Chevron Phillips Chemical, the joint venture between Phillips 66 and Chevron, picked up Elite Gold awards for its Borger and Orange, Texas, sites, as well as Elite Silver honors for its Port Arthur, Texas, and Sweeny operations.

AFPM is a leading trade association for U.S. refiners and chemical manufacturers. The awards are part of a program developed by the AFPM Safety and Health Committee to promote safe operations in the refining and petrochemical industries. 

Sweeny’s award marks the seventh year in a row that a Phillips 66 refinery has captured the industry’s top honor.

“Earning the AFPM DSA is an outstanding feat for any facility; doing it for two years in a row is beyond remarkable,” Sweeny Refinery HSE Manager Ben Way said. “Our people should be enormously proud of this accomplishment and our commitment to safety. It’s a conscious decision our employees make every moment they spend time within our gates.”

Past Distinguished Safety Award winners from Phillips 66 also include Bayway (2019, 2017), Billings (2008), Borger (2019), Ferndale (2019), Lake Charles Manufacturing Complex (2020, 2019, 2016), Ponca City (2020, 2018) and Santa Maria (2020, 2019, 2011).

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