Shares of the Houston energy company at last check were off slightly $64.04.
The plant will make fuels from used cooking oil, fats, greases and soybean oils, Phillips 66 said.
"We believe the world will require a mix of fuels to meet the growing need for affordable energy, and the renewable fuels from Rodeo Renewed will be an important part of that mix," Greg Garland, chairman and chief executive, said in a statement.
The company said it expected the plant to produce 680 million gallons annually of renewable diesel, renewable gasoline, and sustainable jet fuel.
Combined with the production of renewable fuels from an existing project in development, Phillips 66 said, the plant will produce greater than 800 million gallons of renewable fuels a year, making it the world’s largest facility of its kind.
If approved, Phillips 66 said it expected renewable-fuel production to begin in early 2024. Once reconfigured, the plant will no longer transport or process crude oil.
The plant is expected to employ more than 400 and create up to 500 construction jobs, using local union labor, including the Contra Costa County Building & Construction Trades, the company said.
Separately, Phillips 66 said it planned to shut down the Rodeo Carbon Plant and Santa Maria refining facility in Arroyo Grande, Calif., in 2023. The company will begin taking out associated crude oil pipelines in phases starting in 2023.