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Huge Phillips 66 biofuels project will test the industry’s green promises By Reuters

Oil Recovers Slightly as Robust U.S. Demand Offsets OPEC+ Uncertainty

© Reuters.

By Laila Kearney

RODEO, California (Reuters) – In the oldest refining town in the American West, Phillips 66 (NYSE:) is promising a greener future as it moves to halt crude-oil processing and build a massive renewable diesel plant, leading a global trend.

That plan, announced in 2020, was initially welcomed by residents weary from a history of pollution and toxic leaks. But some have grown skeptical as the project’s details cast doubt on the environmental benefits of revamping the 127-year-old complex on 1,100 acres in Rodeo, California.

The company’s initial claim that it would slash greenhouse gasses by half doesn’t match the project’s environmental impact report, published by county regulators, which shows a 1% reduction, according to a Reuters calculation of emissions data in the report. What’s more, refining of petroleum byproducts may continue as a side project.

And renewable-diesel production will require a surge in marine and train traffic, increasing emissions and spill risk. The conversion also requires boosting natural-gas usage to produce hydrogen required to make the biofuel.

These dynamics and other variables raise questions about Phillips 66’s marketing of renewable diesel as a green fuel and make it impossible to tell whether and how much the refinery overhaul will reduce community pollution, three independent environmental experts told Reuters.

The project’s environmental impact will be a test case for similar facilities worldwide. Several dozen new U.S. renewable diesel plants are planned, according to energy consultancy Stratas Advisors. Most will be conversions of oil refineries. Production capacity could triple, to 6 billion gallons, by 2026, Stratas says. Europe and Asia are seeing similar trends.

The Rodeo conversion could be either “a model or a cautionary tale,” said Gwen Ottinger, an associate professor in the Center for Science, Technology and Society at Drexel University who has studied air-pollution monitoring in Rodeo.

Phillips 66 representatives say the project, dubbed Rodeo Renewed, will significantly cut certain regulated pollutants and will lead to large cuts in greenhouse gasses when the biofuel is burned in vehicles. The refinery’s general manager, Jolie Rhinehart, said renewable diesel is the cleanest-burning option for use in transporting goods by truck.

“Heavy-haul trucking is a vital aspect to our way of life in this country and in this world,” she said. “And…

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