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hey #energytwitter, cool to hear @Phillips66Co will convert its San Fran 
refinery into the world's largest renewable diesel plant (targeting ~20m bbl/yr production beginning 2024). the project is called "Rodeo Renewed."
https://www.phillips66.com/newsroom/rodeo-renewed
a few reflections from
:
1/12
refinery into the world's largest renewable diesel plant (targeting ~20m bbl/yr production beginning 2024). the project is called "Rodeo Renewed."https://www.phillips66.com/newsroom/rodeo-renewed
a few reflections from
:1/12
"conventional" energy firms, whose businesses revolve around #fossilfuels, need to see pathways that allow them to decarbonize. #climateaction 
can happen faster if we work *with* the truth that corporations, perhaps esp. incumbents, have a powerful bias toward existence. 
2/12
can happen faster if we work *with* the truth that corporations, perhaps esp. incumbents, have a powerful bias toward existence. 2/12
an announcement like this doesn't happen w/o policy: in this case, Cali @AirResources Board's #lowcarbonfuelstandard. Acc to @MarkJaccard, the #LCFS quietly contributes ~13% of Californian GHG reductions, making it key to the state #energytransition.
https://bit.ly/3iFLuu8
3/12
https://bit.ly/3iFLuu8
3/12
also, renewable diesel, a "drop-in" biofuel (meaning compatible w/ existing engines/infrastructure), has a key role to play in reducing GHGs from heavy-duty transport over the near-/medium-term. this is an incredibly hard-to-abate subsector, as @pembina has long argued.
4/12
4/12
capital budgets are a scarce resource in the oil+gas industry these days & competition for investment all the fiercer for it. needs a 
#cleanfuelstandard #CFS to get projects like this one (worth USD $750m-800m) underway in our own energy sector.
https://s22.q4cdn.com/128149789/files/doc_presentations/2020/08/Rodeo-Renewed-IR-Slides.pdf
5/12
needs a #cleanfuelstandard #CFS to get projects like this one (worth USD $750m-800m) underway in our own energy sector.https://s22.q4cdn.com/128149789/files/doc_presentations/2020/08/Rodeo-Renewed-IR-Slides.pdf
5/12
several 
refiners ( @MarathonPetroCo, HollyFrontier, CVREnergy) have recently revealed plans to move aggressively into biofuels. every 
in US production capacity jeopardizes 's ability to attract $ for our own domestic expansion into clean fuels.
https://www.reuters.com/article/us-phillips-66-biofuels/phillips-66-to-reconfigure-california-refinery-for-renewable-fuels-idUSKCN2582GP
6/12
refiners ( @MarathonPetroCo, HollyFrontier, CVREnergy) have recently revealed plans to move aggressively into biofuels. every in US production capacity jeopardizes 's ability to attract $ for our own domestic expansion into clean fuels.https://www.reuters.com/article/us-phillips-66-biofuels/phillips-66-to-reconfigure-california-refinery-for-renewable-fuels-idUSKCN2582GP
6/12
so, the #CleanFuelStandard needs to send a signal strong enough to support financing of new domestic production capacity. it'd be a real loss if all the #CFS did, biofuel-wise, was increase 's trade deficit with .*
old data, but indicative:
https://www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/snpsht/2016/11-02rgltnmrktcndtn-eng.html?=undefined&wbdisable=true
7/12
's trade deficit with .*old data, but indicative:
https://www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/snpsht/2016/11-02rgltnmrktcndtn-eng.html?=undefined&wbdisable=true
7/12
*important note here to say that biofuels are just one of the clean fuel technology options whose financing a robust #CFS would support (& of course, not all biofuels are created equal). EV charging, hydrogen, biogas/RNG, fossil refinery upgrades are also all on the table.
8/12
8/12
still, a project like Rodeo Renewed involves risk (it's "a bet on the [continuity of a positive] regulatory environment," per @BorensteinS).
https://sanfrancisco.cbslocal.com/2020/08/12/phillips-66-refinery-in-rodeo-converting-to-renewable-fuels/
9/12
https://sanfrancisco.cbslocal.com/2020/08/12/phillips-66-refinery-in-rodeo-converting-to-renewable-fuels/
9/12
but the green 
light shows substantial energy industry investment remains possible in a jurisdiction that both prices carbon and mandates reductions in the GHG intensity of fuels (what the CA #LCFS does / Cdn #CFS would do).
10/12
light shows substantial energy industry investment remains possible in a jurisdiction that both prices carbon and mandates reductions in the GHG intensity of fuels (what the CA #LCFS does / Cdn #CFS would do). 10/12
last, the quiet rider to the Rodeo announcement was the closure of Phillips66's 44.5k bbl/d Santa Maria refinery, which primarily upgrades heavy crude oil (prior to further refining into finished fuels). another small sign of market shift away from Alberta's main export...
11/12
11/12
b/c in a world where @CER_REC is still projecting in Cdn oil production, less upgrading capacity for heavier crudes means AB producers will have to compete more and more for diminished refinery availability & so accept marginally lower WCS prices.
https://www.cer-rec.gc.ca/nrg/ntgrtd/ftr/2019lsnds/index-eng.html
12/12
in Cdn oil production, less upgrading capacity for heavier crudes means AB producers will have to compete more and more for diminished refinery availability & so accept marginally lower WCS prices.https://www.cer-rec.gc.ca/nrg/ntgrtd/ftr/2019lsnds/index-eng.html
12/12
