May 3, 2023 [Biodiesel Magazine] – Marathon Petroleum Corp. released first quarter financial results on May 2, confirming the second phase of its renewables conversion project at the Martinez refinery in California is progressing on schedule and expected to be complete by year end.
The Martinez project is being developed in partnership with Neste. The biorefinery reached full Phase I production capacity of 260 million gallons per year during the first quarter of 2023. Phase II construction activities are progressing on schedule, according to the company, with feedstock pretreatment capabilities expected to come online during the second half of this year. By the end of 2023, the biorefinery is expected to be capable of producing 730 MMgy.
“Martinez will be among the largest renewable diesel facilities in the world, underpinned by a competitive operating and capital cost profile, robust inbound and outbound logistics flexibility, an advantaged feedstock slate, and our strategic relationship with Neste,” said Michael Hennigan, president and CEO of Marathon, during a first quarter earnings call held May 2.
In addition to Neste, Hennigan noted Marathon is also cultivating strategic relationships with ADM and The Andersons with regard to renewables. Marathon’s presence in the renewables space also extends beyond renewable diesel.
Hennigan briefly discussed the company’s March acquisition of 49.9 percent of LF Bioenergy, an emerging producer of renewable natural gas (RNG), noting that acquisition provides Marathon the ability to participate in early-stage development at an attractive entry point.
He also pointed to Marathon’s Virent subsidiary, which is progressing a commercially feasible assessment for converting biobased feedstocks into gasoline and sustainable aviation fuel (SAF).
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