Yahoo Finance Phillips 66 (PSX) Ramps Up Production of Renewable Fuels
Phillips 66 PSX, a leading integrated energy company, has announced that it has finished the full conversion of its Rodeo Renewable Energy Complex in California. The complex has achieved full production rates following the conversion, which has raised throughput rates to 50,000 barrels per day. This equals approximately 800 million gallons of renewable fuel per year.
The Rodeo complex has completely ceased crude oil processing and shifted to the production of renewable diesel and sustainable aviation fuels. By ramping up the production of renewable fuels, the Rodeo complex has successfully met the target of achieving full capacity by the end of the second quarter. The Rodeo complex had a production capacity of 30,000 barrels per day of renewable fuel at the end of the first quarter of 2024.
PSX had announced the Rodeo Renewed project back in 2020. The complex has been engineered to produce renewable diesel and sustainable aviation fuels, among other products, which are to be supplied not only to the Californian market but also to other regions along the West Coast. The facility uses lower carbon intensity feedstocks like used cooking oil, fats, greases and vegetable oil, which are processed via new pre-treatment units to convert them into renewable fuels.
The conversion of the 128-year-old Rodeo complex represents a milestone for Phillips 66. Achieving full capacity at Rodeo allows the company to meet the increasing demand for renewable fuels while reducing its carbon footprint. This initiative underscores PSX’s commitment to providing lower carbon solutions and aligns with the global efforts toward energy transition.
Zacks Rank and Key Picks
Currently, PSX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, SM Energy SM and Hess Midstream Partners LP HESM. Archrock and SM Energy presently sport a Zacks Rank #1 (Strong Buy) each, while Hess Midstream carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess Midstream owns, operates, develops and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.
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