Exclusive: Phillips 66, ADM in talks on biofuels joint venture – sources

Exclusive: Phillips 66, ADM in talks on biofuels joint venture - sources  Reuters

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Aug 9, 2023 - 08:00
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Exclusive: Phillips 66, ADM in talks on biofuels joint venture – sources

Exclusive: Phillips 66, ADM in talks on biofuels joint venture - sources

U.S. Oil Refiner Phillips 66 and Grain Trader Archer-Daniels-Midland Discuss Biofuels Joint Venture

U.S. oil refiner Phillips 66 (PSX.N) and grain trader Archer-Daniels-Midland (ADM.N) are discussing a biofuels joint venture with an aim toward producing lower-carbon jet fuel, three people familiar with the matter said.

Background

  • The oil and corn-based ethanol industries, which were at odds for years over blending mandates, have increasingly become allies amid a series of partnerships aimed at securing crop feedstocks to produce lower-carbon biofuels without costly refinery upgrades.

Joint Venture Details

  • Phillips 66 and Archer-Daniels-Midland are discussing putting ADM’s dry corn mill operations into a venture that would convert grain-based alcohol to jet fuel.

Other Similar Ventures

  • ADM already formed a joint venture in 2021 with Marathon Petroleum Corp to produce renewable diesel from soybeans.
  • Bunge and Chevron also formed a joint venture to make renewable fuels from soybeans and canola.

Technology Partnership

 

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