The company's investment gives it a minority ownership stake in Shell Rock Soy Processing, named after the nearby town in northeast Iowa where it will be built. The plant, which is pending state and local approvals, will yield approximately 4,000 barrels per day of soybean oil. Phillips 66 has an agreement to purchase 100% of the plant's soybean oil production that will be used to make renewable fuels.
"This strategic investment expands our reach into the renewable diesel value chain and provides secure feedstock," said Brian Mandell, Phillips 66 Executive Vice President of Marketing and Commercial. "It also reflects our commitment to play an important role in a lower-carbon energy future."
The company unveiled plans last year to convert its Rodeo Refinery into one of the world's largest renewable fuels facilities, capable of producing 800 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel from used cooking oils, fats, greases, vegetable oils and other feedstocks. The project, subject to permits and approvals, would be completed in early 2024.
"Phillips 66 represents what we believe to be the premier renewables platform, with a superior business plan and fantastic long-term prospects," said Shell Rock Soy Processing CEO Mike Kinley. "As we reviewed our options for offtake partners, it was clear to us that Phillips 66 was the partner of choice for the long term."
In addition to the soybean oil, Shell Rock Soy Processing will produce more than 900,000 tons per year of soybean meal and hulls for livestock feed. The plant is geographically advantaged, located in one of the top soybean production states with rail options that provide direct access to diverse markets.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,300 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of Dec. 31, 2020. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Forward-looking statements may be identified by the use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "targets," "estimates" or other words of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events which may not be accurate or realized, and involve risks and uncertainties, many of which are beyond Phillips 66's control, including but not limited to regulatory approvals and market conditions. A discussion of factors that may affect future results is included in Phillips 66's filings with the Securities and Exchange Commission. Phillips 66 disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law.
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