Communicator

*Excludes non-cash finance leases of $43 MM in Refining, $30 MM in Midstream and $2 MM in Corporate and Other.
** Our share of joint ventures’ capital spending.

December 16, 2024 | Phillips 66 News Release

Phillips 66 announced a 2025 capital budget of $2.1 billion, including $998 million for sustaining capital and $1.1 billion for growth capital. The budget underscores Phillips 66 dedication to delivering value to shareholders by funding growth in the NGL wellhead-to-market value chain and further enhancing refining competitiveness.

▪️ In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. ▪️ The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.
▪️ In Refining, Phillips 66 plans to invest $822 million, including $414 million for sustaining capital. Refining growth capital of $408 million supports the company’s commitment to high-return, low-capital projects.
▪️ The Marketing and Specialties capital budget reflects the continued enhancement of the company’s branded network.
The Renewable Fuels capital budget reflects investments at the Rodeo Renewable Energy Complex toward the optimization of feedstocks and logistics for renewable diesel and sustainable aviation fuel production.
Corporate and Other capital will primarily fund information technology projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB) is expected to total $877 million and be self-funded. Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2025 capital program is projected to be $3 billion.

▪️ CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities are expected to start up in 2026.
▪️ WRB’s capital spending will primarily be directed to sustaining projects.

#phillips  #chevron  #wrb  #refining  #renewablediesel  #saf  #aviationfuel  #ngl  #cpchem  #raslaffan  #quatar  #usgc  #goldentriangle  #rodeo 

Deoxygenation reactions (i.e., dehydration, decarboxylation, and decarbonylation) are important in the cracking process to remove Oxygen in vegetable oils (triglycerides) and replace it with hydrogen to form liquid renewable fuels.

#renewablediesel  #saf  #sustainableaviationfuel  #bionaphtha  #biofuels 

Sunset on a refinery

"Oil refineries across Europe will be forced to shut as the West abandons fossil fuels in the race to net zero," – said BP CEO Murray Okincloss, commenting on the company's financial statements, The Telegraph reports.

He believes that older and smaller refineries in the EU will close or switch to biofuels as conventional oil refining becomes unprofitable due to a combination of soaring fuel taxes and falling demand from drivers switching to electric cars.

“So I would expect the least efficient refineries, which are the smallest, oldest around the world, to gradually close down as the world transitions over the next 10 to 30 years.”

BP has four refineries in Europe, three of which are already planned for conversion to produce biofuels including sustainable aviation fuel (SAF). Grangemouth Refinery in Scotland, which is owned by Ineos, employs 500 people but is scheduled to shut early next year.

Data from Fuels Europe shows that refining capacity in the EU, as well as in the UK, Switzerland and Norway, is already declining. Capacity has fallen from 781 million tonnes a year in 2009 to 677 million tonnes now. This means that Europe accounts for about 15% of the world's refining capacity - well behind the US with 21% or  APAC with 36%.

Contradicting the statements reported above, BP said in June that it was scaling back this year’s plans for the development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites, pausing planning for two potential projects while continuing to assess three for progression, according to Oilprice.

“This is aligned with BP’s drive to simplify its portfolio, focusing on value and returns,” the UK-based supermajor said.

In June, BP declared to continue investing in deepwater fields in the Gulf of Mexico, and made a statement saying it was "scaling back" new biofuels projects.

The company has tempered its enthusiasm for its low-carbon program, and with it cut its climate commitments, adapting to an operating model that assumes continued high oil demand into the 2040s and beyond.

“Labour policy says oil and gas production in the North Sea will be with us for decades to come ... They launched a consultation process with the sector last night and we’ll be engaged deeply with them on that,” Okincloss said.

The oil giant's net profit for the second quarter of this year was higher than expected ($2.76 billion). The company's low-carbon and natural gas division, on the other hand, performed poorly, posting a loss of $0.1 billion.

#refining  #refinery  #crudeoil  #naturalgas  #oilandgas  #europe  #saf  #sustainableaviationfuel  #renewablediesel  #biofuels 

After halting work on biofuel plant in Rotterdam, 🇳🇱 The Netherlands, and booking a $1bn write down, Shell has also pulled out of e-SAF project planned with state-owned 🇸🇪 Swedish power utility company Vattenfall.

“Vattenfall and Shell have decided to pause their collaboration in the HySkies electrofuel project while Vattenfall continues the search for new partners,” said Vattenfall in a statement.

The joint project, with the planned capex of €780m ($845m), was launched in 2021 with initial plans to produce 82,000 tonnes of e-SAF and 9,000 tonnes of renewable diesel per annum. The project envisaged the use of hydrogen from 200MW electrolysis plant, biogenic CO2 captured from a waste-to-energy plant and sustainable ethanol as feedstocks at the site.

It was due to begin operations in March of 2027.

On the other hand, the company said that it will also not avail financial support via the EU Innovation Fund, considering it is infeasible for the project to succeed within the framework of that agreement and aiming to free up funds for others to use in their ambitions to decarbonise.

Vattenfall-Shell e-SAF project was awarded €80.2mn ($87mn) grant in January 2023.

#saf  #hefa  #hefa -spk #aviationfuel  #renewablediesel  #sustainableaviationfuel  #shell  #vattenfall  #electrolysis  #hydrogen  #greenhydrogen  #carboncapture  #ccu  #ethanol  #bioethanol 

Source: Fayaz Hussain, 8^th July 2024, SAF Investor

LONDON, UNITED KINGDOM, July 02, 2024:

Shell Nederland Raffinaderij B.V., a subsidiary of Shell plc, is to temporarily pause on-site construction work at its 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in Pernis, 🇳🇱 the Netherlands, to address project delivery and ensure future competitiveness given current market conditions.

As a result, contractor numbers will reduce on site and activity will slow down, helping to control costs and optimise project sequencing.

“Temporarily pausing on-site construction now will allow us to assess the most commercial way forward for the project,” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

Shell took a final investment decision for the planned biofuels facility  in September 2021. The facility is designed to produce sustainable aviation fuel (SAF) and renewable diesel made from waste.

Additional information regarding project status and timelines will be communicated in future updates.

Follow ppPLUS news

#biofuel  #saf  #sustainableaviationfuel  #renewablediesel  #biorefinery  #shell 

Total FAME biodiesel production in 2012 was almost 1 billion gallons and renewablediesel was just 52 million gallons. Fast-forwarding to 2022, total annual production of renewable diesel reached almost 1,483 million gallons, only 137 million gallons less than FAME. Consequently, renewable diesel accounted for 48 percent of total BBD production in 2022, when just one decade ago it accounted for only 5 percent of BBD production. #fame  #biodiesel  #renewablediesel 

Link