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Phillips 66 (PSX - Free Report) is on the verge of launching its Rodeo Renewed plant, a revolutionary renewable diesel facility in Rodeo, CA.
The significant step forward comes after successfully navigating a comprehensive environmental review, marking a milestone in the company’s transition from traditional oil refining to renewable fuel production.
The saga began when a July 2023 ruling found that the local environmental regulator, Contra Costa, initially approved the Rodeo Renewed plant in March 2022 based on incomplete and misleading environmental reviews, thereby violating elements of the California Environmental Quality Act.
Despite these challenges, Phillips 66 was permitted to continue construction on the facility, which boasts a capacity of 50,000 barrels per day and is expected to be completed early this year. The company’s persistence paid off recently when the Contra Costa County board of supervisors announced that the project had passed a new environmental review.
The review acknowledged eight significant and unavoidable environmental impacts relating to air quality, hazardous materials, and water quality. However, it was determined that all feasible mitigation measures had been implemented by Phillips 66, striking a balance between environmental impacts and the project’s benefits.
Contra Costa highlighted that the project’s specific benefits, including its contribution to renewable energy and lower-carbon solutions, outweigh and override the identified environmental impacts. As a result, the regulator recommended the approval of the project.
Phillips 66’s Rodeo Renewed project is poised to become the world’s largest renewable fuel production facility upon completion. This ambitious project is expected to significantly reduce the facility’s greenhouse gas emissions by 50%, as it ceases to process crude oil. The facility’s conversion aligns with broader industry trends toward renewable energy sources and reflects growing environmental consciousness in fuel production.
The Rodeo Renewed plant represents a significant shift in energy production toward more sustainable practices. Phillips 66’s initiative is a response to both regulatory pressures and market trends favoring renewable energy sources. While the project promises substantial environmental benefits, it also highlights the ongoing challenges and complexities involved in transitioning from traditional fossil fuel sources to renewable energy.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zack Rank #3 (Hold).
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. Sunoco has a core competency in terms of its history of disciplined expense management.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.
Enbridge Inc. (ENB - Free Report) is a leading energy infrastructure company. It plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.
The Zacks Consensus Estimate for ENB’s 2023 and 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.
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Phillips 66 (PSX) Resolves Rodeo Plant's Environmental Review
Phillips 66 (PSX - Free Report) is on the verge of launching its Rodeo Renewed plant, a revolutionary renewable diesel facility in Rodeo, CA.
The significant step forward comes after successfully navigating a comprehensive environmental review, marking a milestone in the company’s transition from traditional oil refining to renewable fuel production.
The saga began when a July 2023 ruling found that the local environmental regulator, Contra Costa, initially approved the Rodeo Renewed plant in March 2022 based on incomplete and misleading environmental reviews, thereby violating elements of the California Environmental Quality Act.
Despite these challenges, Phillips 66 was permitted to continue construction on the facility, which boasts a capacity of 50,000 barrels per day and is expected to be completed early this year. The company’s persistence paid off recently when the Contra Costa County board of supervisors announced that the project had passed a new environmental review.
The review acknowledged eight significant and unavoidable environmental impacts relating to air quality, hazardous materials, and water quality. However, it was determined that all feasible mitigation measures had been implemented by Phillips 66, striking a balance between environmental impacts and the project’s benefits.
Contra Costa highlighted that the project’s specific benefits, including its contribution to renewable energy and lower-carbon solutions, outweigh and override the identified environmental impacts. As a result, the regulator recommended the approval of the project.
Phillips 66’s Rodeo Renewed project is poised to become the world’s largest renewable fuel production facility upon completion. This ambitious project is expected to significantly reduce the facility’s greenhouse gas emissions by 50%, as it ceases to process crude oil. The facility’s conversion aligns with broader industry trends toward renewable energy sources and reflects growing environmental consciousness in fuel production.
The Rodeo Renewed plant represents a significant shift in energy production toward more sustainable practices. Phillips 66’s initiative is a response to both regulatory pressures and market trends favoring renewable energy sources. While the project promises substantial environmental benefits, it also highlights the ongoing challenges and complexities involved in transitioning from traditional fossil fuel sources to renewable energy.
Zacks Rank & Stocks to Consider
Phillips 66 currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. Sunoco has a core competency in terms of its history of disciplined expense management.
The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $3.83. SUN currently has a Zacks Style Score of B for Value and Growth.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. OII currently has a Zacks Style Score of A for Growth, and B for Value and Momentum.
Enbridge Inc. (ENB - Free Report) is a leading energy infrastructure company. It plans to introduce more than C$19 billion in growth projects, contributing to significant EBITDA growth in the near future.
The Zacks Consensus Estimate for ENB’s 2023 and 2024 EPS is pegged at $2.13. ENB currently has a Zacks Style Score of A for Momentum.