Phillips 66 PSX,
said Wednesday that it will stop producing crude oil fuel at its San Francisco Refinery in Rodeo, California, and that it will reconfigure the refinery to produce sustainable fuels. It will start with making fuels from used cooking oil, fat, fats and soybean oil. The company said it expects to produce 680 million gallons a year from sustainable diesel, gasoline and sustainable jet fuel. Including production from an existing project, the plant will produce more than 800 million gallons per year from renewable fuels, making it the world’s largest plant for sustainable fuels. Separately, Phillips 66 said it plans to close its Rodeo Carbon Plant and its Santa Maria refinery in Arroyo Grande, California, by 2023. The company will decommission associated crude oil pipelines in phases, starting in 2023. The stock, which ticks 0.1% in midday trading, has soared 42.4% year to date, while SPDR Energy Select Sector ETF XLE,
has lost 36.3% and the S&P 500 SPX,
has received 4.4%.
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