- Facility to produce approximately 730 million gallons per year of lower carbon-intensity renewable fuels
- Significantly lower greenhouse gas emissions, criteria air pollutants, water use compared to petroleum refinery operations
- Conversion builds on company’s commitment to sustainability and lowering carbon intensity
Marathon Petroleum Corporation (NYSE: MPC) announced today that its Board of Directors has approved plans to convert its Martinez, California, refinery into a renewable fuels 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,” MPC President and CEO Michael J. Hennigan said. “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 million gallons per year 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% 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%, total criteria air pollutants by 70% and water use by 1 billion gallons every year.
Additional information about the Martinez Renewable Fuels project can be found on its website, http://www.MarathonMartinezRenewables.com.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.
Investor Relations Contact:
Kristina Kazarian, Vice President, Investor Relations (419) 421-2071
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312
This publication contains forward-looking statements within the meaning of federal securities laws regarding Marathon Petroleum Corporation (MPC). All statements, other than statements of historical fact, are forward-looking statements, including without limitation statements concerning: MPC’s climate-related challenges and opportunities, and sustainable energy strategy and the expected benefits thereof. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, these statements are accompanied by cautionary language identifying important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. You can identify our forward-looking statements by words such as "anticipate," "believe," "budget," "commitment," "design," "estimate," "expect," "focus," "forecast," "forward," "goal," "guidance," "imply," "intend," "look," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "project," "projection," "proposition," "prospective," "pursue," "schedule," "seek," "strategy," "target," "could," "may," "should," "would," "will" or other similar expressions that convey the uncertainty of future events or outcomes. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Factors that could cause our actual results to differ materially from those implied in the forward-looking statements include without limitation: the effects of any divestitures on the business or our financial condition, results of operations and cash flows; future levels of revenues, refining and marketing margins, operating costs, retail gasoline and distillate margins, merchandise margins, income from operations, net income or earnings per share; the regional, national and worldwide availability and pricing of refined products, crude oil, natural gas, natural gas liquids (NGLs), renewable feedstocks and other feedstocks; consumer demand for refined products and renewable fuels; the depth and magnitude of the COVID-19 pandemic and the actions taken by governments or consumers resulting from the pandemic; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects, including the receipt of third party and/or regulatory approvals or permits required for such projects; the reliability of processing units and other equipment; business strategies, growth opportunities and expected investment; our ability to successfully implement our sustainable energy strategy and principles, including our greenhouse gas intensity and methane intensity targets, and realize the expected benefits thereof; unexpected technological developments; the effect of restructuring or reorganization of business components; the potential effects of judicial or other proceedings on our business, financial condition, results of operations and cash flows; continued or further volatility in and/or degradation of general economic, market, industry or business conditions as a result of the COVID-19 pandemic, other infectious disease outbreaks, natural hazards, extreme weather events or otherwise; general economic, political or regulatory developments, including changes in governmental policies relating to refined petroleum products, crude oil, natural gas, NGLs, renewable feedstocks, other feedstocks or renewable energy, regulation or taxation and other economic and political developments (including those caused by public health issues and outbreaks); compliance with federal and state environmental, economic, health and safety, energy and other policies and regulations, including the cost of compliance with the Renewable Fuel Standard, and/or enforcement actions initiated thereunder; the effects of actions of third parties such as competitors, activist investors or federal, foreign, state or local regulatory authorities or plaintiffs in litigation; the impact of adverse market conditions or other similar risks to those identified herein affecting MPLX; and the factors set forth under the heading "Risk Factors" in MPC's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and in Quarterly Reports on Form 10-Q, filed with Securities and Exchange Commission (SEC). Copies of MPC's Forms 10-K and 10-Q are available on the SEC's website, MPC's website at https://www.marathonpetroleum.com/Investors/ or by contacting MPC's Investor Relations office.
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