Phillips 66 has committed over $750 million to expand its renewable diesel footprint, increasing total capacity to 350,000 barrels per day by 2028. The centerpiece is a 150,000 bpd retrofit at its Rodeo, California refinery, which is on track for mechanical completion in Q4 2026. Once online, this unit will more than double the company's existing renewable diesel output, helping reduce lifecycle greenhouse-gas emissions by up to 80% versus conventional diesel.

In partnership with LanzaJet, PSX is developing a 100 million-gallon-per-year sustainable aviation fuel (SAF) facility at its Ferndale refinery, slated to start up in mid-2027. This project includes a dedicated hydroprocessor and a proprietary alcohol-to-jet unit. Combined with existing offtake agreements covering more than 60 airlines globally, the Ferndale SAF plant positions Phillips 66 to capture over 20% of current U.S. SAF capacity.

To support petrochemical feedstocks while cutting carbon intensity, Phillips 66 plans to boost naphtha production by 10% industry-wide by 2027, targeting 1.9 million barrels per day across its U.S. Gulf Coast and European assets. Concurrently, PSX has pledged a 15% reduction in operated-asset carbon intensity by 2030, leveraging process electrification, hydrogen co-processing and precision analytics at its Sweeny and Alliance refineries.