The news that Marathon will indefinitely idle it’s Martinez, CA and Gallup, New Mexico refineries with no plans to restart normal operations, reflects the difficult times faced by fuel producers. The Martinez plant is under consideration by Marathon to be repositioned as a renewable diesel facility. Should that happen, Marathon would be in the running to become one of the largest renewable diesel producers in the world.
Marathon is already working to complete construction on their Dickinson renewable diesel project, which remains on schedule for planned completion in late 2020. This project converts the Dickinson refinery into a 12,000 barrel per day biorefinery capable of producing renewable diesel from corn and soybean oil, according to their strategic and operations update.
If the decision on the Martinez refinery moves forward, this would convert the refinery into a 48,000 barrel per day biorefinery for renewable diesel. Providing that permits are granted, and the project receives Board approval, Marathon could start producing in a couple of years and hit full production by 2024. If both projects reach completion, that could give Marathon the ability to produce 900 million gallons of renewable diesel per year.
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