Marathon Petroleum Anticipates Full Capacity at Martinez Renewable Diesel Facility by Year's End

Marathon Petroleum expects its Martinez renewable diesel plant in the San Francisco Bay area to reach full capacity by year-end. The facility currently operates at about half its nameplate capacity of 48,000 b/d, but is slated to increase to 75% capacity by mid-third quarter and reach full capacity by the end of the year. The joint venture with Neste Oyj aims to meet growing demand for renewable diesel.

Marathon Petroleum's (MPC) renewable diesel facility in the San Francisco Bay area, a 50-50 joint venture with Neste Oyj, is expected to reach full capacity by the end of this year. The facility, which currently operates at around 50% of its nameplate capacity of 48,000 barrels per day (b/d), is undergoing an expansion to meet the growing demand for renewable diesel [1].

According to Maryann Mannen, MPC's president, the company plans to increase the plant's capacity to 75% by mid-third quarter and eventually reach 100% capacity by year-end [1][2]. In contrast, in January, the facility was operating at approximately 22,000 b/d, only a fraction of its full potential [1].

MPC initially expected the Martinez facility to produce at its nameplate capacity by the end of 2023 [1]. However, the conversion of the traditional petroleum refinery to a renewable fuels plant has faced delays due to two November fires at the facility, which necessitated an investigation by the US Chemical Safety and Hazard Investigation Board (CSB) [2].

Despite these challenges, MPC remains committed to its renewable diesel investment. Renewable diesel, which is made from renewable feedstocks such as waste vegetable oils and animal fats, is a cleaner-burning alternative to traditional diesel that produces fewer greenhouse gas emissions. Moreover, demand for renewable diesel is expected to grow, as governments and companies seek to reduce their carbon footprints [3].

MPC's Martinez facility is not alone in its expansion efforts. Other refineries, such as Phillips 66's Rodeo refinery in California, are also investing in renewable diesel production to capitalize on this growing market [3].

References:

[1] MarketWatch. Marathon Petroleum expecting Martinez RD facility at full capacity by year-end. Retrieved from https://www.marketwatch.com/story/marathon-expecting-martinez-rd-facility-at-full-capacity-by-year-end-opis-7dc8ff96

[2] Argus Media. Marathon Martinez refinery at 50pc capacity. Retrieved from https://www.argusmedia.com/en/news-and-insights/latest-market-news/2563728-marathon-martinez-refinery-at-50pc-capacity

[3] Reuters. U.S. refineries to produce more renewable diesel as demand grows. Retrieved from https://www.reuters.com/business/energy/us-refineries-to-produce-more-renewable-diesel-as-demand-grows-2023-02-27/