BP plans to invest $269 million in its Cherry Park Refinery in Washington state over the next few years.
The London-based energy giant, whose U.S. operations are headquartered in Houston, plans to boost the refinery's efficiency, double its capacity to produce renewable diesel fuel, and reduce its carbon dioxide emissions by 7%, or 160,000 tons per year.
BP said the investment aligns with its long-term goals of becoming net zero by 2050 and reducing the carbon intensity of its products by 50% by 2050 or sooner.
“BP’s new investment in Cherry Point builds on a half century of innovation in Washington state," BP America Chairman and President David Lawler said. "It will position us to provide lower carbon energy while creating jobs and reducing emissions in our operations.”
BP said the investment will create more than 300 jobs in Washington, where it supports around 36,600 jobs.
The company will spend $169 million on a hydrocracker improvement project that will cut down on flaring and unit shutdowns. The hydrocracker subjects oils to high temperatures, pressure and hydrogen to make gasoline, diesel and jet fuel.
The work will result in less consumption of hydrogen and lower heat input. It will reduce CO2 emissions, cut down on planned maintenance and improve efficiency, according to the company.
BP will invest $55 million into its cooling water infrastructure project that will increase efficiency in the cooling water that's used throughout the refinery to maintain an optimum temperature. The work is expected to be finished in 2023.
The company estimates the two projects will reduce carbon emissions by the equivalent of taking 32,000 cars off the road.
BP also is investing $45 million to double the refinery's diesel production capacity, which will be at 2.6 million barrels a year. It will be renewable diesel from biomass-based feedstocks like vegetable oil, which is expected to reduce resulting CO2 emissions by 400,000 tons to 600,000 tons a year.
“Our team’s success since we first began producing renewable diesel made these projects possible. We’re excited that Cherry Point continues taking steps toward a lower carbon future. This work shows the important role refining can play in helping both bp and the world reach net zero," said Amber Russell, senior vice president, refining, terminals and pipelines.
BP expects to start up renewable diesel production on the West Coast next year.
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