The investment is aligned with bp’s aims to be net zero across its operations by 2050 or sooner and to reduce the carbon intensity of the products it sells by 50% by 2050 or sooner.
David Lawler, chairman and president, bp America: “bp’s new investment in Cherry Point builds on a half century of innovation in Washington state. It will position us to provide lower carbon energy while creating jobs and reducing emissions in our operations.”
The three projects are:
Hydrocracker Improvement Project
The $169m Hydrocracker Improvement Project (HIP) will improve efficiency and reduce periods of planned maintenance, resulting in fewer unit shutdowns and associated flaring events.
The hydrocracker is the “heart” of the refinery. In this unit, heavy oils are subjected to high temperatures and pressure – in the presence of hydrogen – to produce gasoline, diesel and jet fuel.
Upon project completion, the hydrocracker will consume less hydrogen, which is produced at the refinery by conversion of natural gas, producing CO2 emissions. In addition, the hydrocracker will require less heat input from the consumption of gaseous fuel in refinery process heaters than it does today.
Work on the hydrocracker will begin later this year and is expected to finish in 2023.
Cooling Water Infrastructure Project
The $55m Cooling Water Infrastructure Project (CWI) will enhance cooling water infrastructure, allowing for increased utilization, better energy efficiency, and a related reduction in CO2 emissions.
Just as a radiator in a car cools the engine, cooling towers in the refinery enable cooling for process units through circulation of water. Water is recycled in this system, and as much ambient heat as possible is recovered.
Cooling water is vital to safe operations. This project will improve reliability by enabling the refinery to maintain an optimum cooling water temperature year-round. Increasing efficiency in cooling produces fewer light hydrocarbons, such as methane and ethane, that are combusted in process heaters and utility boilers.
Work on the cooling water infrastructure will begin later this year and is expected to be completed in 2023.
The HIP and CWI projects are together estimated to reduce CO2 emissions from operations at Cherry Point by approximately 160,000 tons per year, or seven percent – equivalent to taking more than 32,000 US cars2 off the road.
Renewable Diesel Optimization
The Renewable Diesel Optimization (RDO) project is a $45m dollar investment that will more than double the refinery’s renewable diesel production capability to an estimated 2.6 million barrels a year.
Renewable diesel is manufactured from biomass-based feedstocks, such as vegetable oils and rendered animal fats. The increased production capability from the RDO project is expected to reduce the CO2 emissions resulting from the diesel produced by Cherry Point by approximately 400,000 – 600,000 tons per year3.
In 2018, Cherry Point became the first and only refinery in the Pacific Northwest capable of processing these feedstocks alongside conventional feedstocks like crude oils. This fuel produced through co-processing is chemically identical to petroleum diesel and can be distributed using the same systems.
Amber Russell, senior vice president, refining, terminals and pipelines: “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.”
The additional renewable diesel production is expected to be available in 2022.
Notes to editor
1 “Renewable diesel” refers to non-ester renewable diesel as defined at 40 CFR 80.1401.
2 Estimated calculation made based on average annual CO2 emissions of a typical passenger vehicle, according to March 2018 EPA report and federal highway statistics.
3 Estimated reduction calculated using the California Low Carbon Standard Provisional Pathway for Co Processed Renewable Diesel methodology approved in 2019.
About bp
bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. bp is America’s largest energy investor since 2005, investing more than $130 billion in the economy and supporting about 230,000 additional jobs through its business activities. For more information on bp in the US, visit www.bp.com/us.
Further information
bp press office, US, [email protected]
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Cautionary statement
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), bp is providing the following cautionary statement. This press release contains certain forecasts, projections and other forward-looking statements – that is, statements related to future, not past, events and circumstances which may relate to one or more of the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp. Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in our most recent Annual Report and Form 20-F under ‘Risk factors’.
Our most recent Annual Report and Form 20-F is available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov
SOURCE BP PLC
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