Refiners shift production to renewables

Abstract

Phillips 66, Global Clean Energy, and Marathon Oil plan to convert their California petroleum refineries to production of renewable diesel from plant oils and animal fats. Prices for petroleum-derived fuels have been squashed by the economic impact of the novel coronavirus. In contrast, producers of renewable fuels expect to profit thanks to significant subsidies for climate-friendly transportation fuels. The renewables shift could create stiff competition for of cheap oils and fats, according to the energy consultancy Stratas Advisors. Any price increase would also affect the soap and detergent industry, which relies on animal fats as raw material for products like cationic surfactants. The American Cleaning Institute, a trade group, for biofuel mandates to exclude animal fats as a feedstock option. Phillips 66 plans to use fats and greases, along with used cooking oil and soybean oil, at its San Francisco Refinery in Rodeo. The firm says it will produce 19