2021 Feb 2 – G&P Global Platts reports Marathon Petroleum balancing traditional refinery operations with new renewable ventures.
The nation’s largest refiner has two major renewable projects underway:
– The 12,000 b/d renewable diesel (RD) plant in Dickinson, North Dakota, which began production in the first quarter and expects to hit full rates by the quarter’s end. Marathon plans to rail the RD to the California market to get the benefit of that state’s Low Carbon Fuel Standard.
- In April 2020, Marathon shut its Martinez, California, refinery because of low refined product demand stemming from coronavirus pandemic lockdowns. Marathon then decided to evaluate repurposing the 161,000 b/d refinery into a 48,000 b/d renewable diesel plant.
The project, which is in the final engineering stage and awaiting permits, is expected to start producing 17,000 b/d of RD by the second half of 2022 upon completion the project’s first phase, which comprises the conversion of a hydrotreater to make RD, said Ray Brooks, who heads Marathon’s refining division.
RINs, or Renewable Identification Numbers, are credits that refiners and other obligated parties selling transportation fuels in the US need to buy if they are not able to blend enough renewables to meet their RVO under the RFS.