US refiner Tesoro to boost processing of biocrude
1/21/2016 12:00:00 AM
US refiner Tesoro has announced a new plan to foster the development of biocrude made from renewable biomass, which can be co-processed in its existing refineries, along with traditional crude oil.
Converting renewable biomass into biocrude is expected to enable existing refining assets to produce less carbon-intensive fuels at a significantly lower capital and operating cost than competing technologies, Tesoro said.
This approach could lower Tesoro's compliance costs with the federal renewable fuel standard and California's low-carbon fuel standard by generating credits, while also producing less carbon-intensive fuels which are fully compatible with the nation's existing fuel infrastructure as well as current vehicle fleet warranties.
In order to support the development of biocrude, Tesoro says it is working collaboratively with several renewable energy companies to advance biomass-to-fuels technology, including:
- Fulcrum BioEnergy: Fulcrum plans to supply biocrude produced from municipal solid waste to Tesoro to process as a feedstock at its Martinez refinery in California. An estimated 800 bpd of biocrude will be produced at Fulcrum's Sierra bioFuels plant in Reno, Nevada, which is expected to be operational in early 2018.
- Virent: Tesoro and Virent are working to establish a strategic relationship to support scale-up and commercialization of Virent's BioForming technology, which produces low-carbon biofuel and chemicals.
- Ensyn: Ensyn has applied for a pathway with the California Air Resources Board to co-process its biocrude, produced from tree residue -- called Renewable Fuel Oil -- in Tesoro's California refineries.
"We've established relationships such as those with Fulcrum, Virent, and Ensyn, to progress technologies which would enable our existing fuel manufacturing infrastructure to help meet the demand for low-carbon, advanced biofuels," said CJ Warner, executive vice president of strategy and business development at Tesoro.
"Working with these companies, Tesoro seeks to create shared value that will benefit our communities, consumers and the environment, while allowing us to supply biofuels at a competitive price," he added.
Comments