Tesoro today said it would partner with renewable energy firms to develop biocrude that can be used as feedstock at its refineries. The company hopes using oil from biomass will help reduce its cost to comply with federal renewable fuel standards and California’s low carbon fuel standard. Tesoro owns refineries in Los Angeles and Martinez, California.
Fulcrum BioEnergy will supply Tesoro’s Martinez refinery with 800 barrels per day of biocrude made from municipal waste at its plant in Reno, Nevada. The plant is expected to start up in early 2018.
Tesoro will also co-process biocrude made from tree residue with Ensyn Corp. and will partner with Virent Inc. to develop a technology that produces low-carbon biofuel and chemicals.
Refining groups oppose low carbon fuel standards that have been implemented in states such as California and Oregon due to the high cost of compliance. The Supreme Court in 2014 refused to hear a case that challenged the rule on the grounds it discriminates against out-of-state producers.
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