Marathon greenlights Martinez, California, refinery conversion to produce renewable diesel

Photo: Marathon Petroleum Corp.

Marathon Petroleum Corp. announced in March that its board of directors has approved plans to convert its Martinez, California, refinery into a renewable diesel manufacturing facility.

Converting the Martinez facility from refining petroleum to manufacturing renewable fuels signals MPC’s strong commitment to producing a substantial level of lower carbon-intensity fuels in California.

“Marathon Petroleum is focused on meeting the world’s growing energy needs and reducing its carbon emissions intensity,” said Michael J. Hennigan, MPC president and CEO. “Converting the Martinez refinery to a renewable fuels facility is an important addition to our growing portfolio of renewables projects and aligns with our strategic priorities of strengthening the competitive position of our assets, implementing commercial strategy changes and strategically deploying our capital.”

The Martinez facility is expected to start producing renewable diesel in 2022, with a build to full capacity in 2023. Engineering work is under way and MPC has applied for relevant permits.

At full capacity, MPC expects the Martinez facility to produce about 730 MMgy of renewable fuels—predominantly renewable diesel—from such biobased feedstocks as animal fat, soybean oil and corn oil.

Renewable diesel has a significantly lower carbon footprint than petroleum diesel. The Martinez conversion is also consistent with MPC’s companywide commitment to reduce greenhouse gas intensity (emissions per barrel of oil equivalent processed) 30 percent below 2014 levels by 2030. MPC estimates its conversion of the Martinez facility from petroleum refining to renewable diesel production will reduce the facility’s manufacturing greenhouse gas emissions by 60 percent, total criteria air pollutants by 70 percent and water use by 1 billion gallons every year.