Marathon in joint venture with Neste on a renewable fuels project

Marathon Petroleum Corp announced that it has entered into definitive agreements to form a joint venture with Neste for its Martinez renewable fuels project.
The partnership will be structured as a 50/50 joint venture with Neste which is expected to contribute a total of $1 billion (0.9 billion euros), including half of the project’s total project development costs expected to completion. of the project.
Marathon will continue to manage the execution of the project and operate the facility once construction is complete.
This strategic partnership is expected to advance the project’s current goals of providing low-carbon fuels to support California’s climate goals.
Marathon and Neste will leverage their complementary core competencies in the joint venture.
Marathon brings its experience in converting facilities to renewable diesel, executing large capital projects and operational expertise in the California market.
Neste brings its knowledge of sustainable raw material sourcing and production of renewable liquid fuels.
Chairman and CEO Michael Hennigan said, “We are delighted to partner with Neste as this strategic partnership reinforces our strong Martinez project by leveraging our complementary strengths and expertise and is consistent with our strategy. previously announced to source low-carbon raw materials through long-term products. arrangements, joint ventures and alliances.
“The project will utilize existing processing infrastructure, diverse inbound and outbound logistics, and is ideally located to support California’s LCFS goals while strengthening MPC’s footprint in renewable fuels.
“Our partnership with Neste marks another step in our commitment to energy evolution and our focus on reducing the carbon intensity of our operations and the products we make.”
The Martinez facility is currently aiming to have a production capacity of 260 million gallons per year of renewable diesel in the second half of 2022, with pre-treatment capabilities to be commissioned in 2023. The facility is expected to be capable of producing 730 million gallons per year. by the end of 2023.