Phillips 66 to Construct Large-Scale Renewable Diesel Fuel Plant on West Coast

HOUSTON and AMES, Iowa — Phillips 66 and Renewable Energy Group Inc. (REG) announced on Nov. 1 that planning is underway for the construction of a large-scale renewable diesel plant on the West Coast.

The plant will utilize REG's proprietary BioSynfining technology for the production of 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.

"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. "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 completed facility would be adjacent to Phillips 66's Ferndale Refinery in Washington State, which 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. "We continually look for opportunities to provide our customers with a reliable source of innovative renewable fuels."

The refinery announcement comes after 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, with production scheduled to start in 2021 if it is approved.

Based in Ames, Iowa, REG provides cleaner, lower carbon intensity products and services that is an international producer of biomass-based diesel, a developer of renewable chemicals and North America's largest producer of advanced biofuel, according to the company.

Houston-based Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of midstream, chemicals, refining, marketing and specialties businesses, the company processes, transports, stores and markets fuels and products globally. It has a network of branded marketers and dealers operating approximately 7,500 outlets.