Phillips launches sulfur credits clearinghouse

Petroleum News Alaska

Phillips Petroleum Co. said June 4 that it is offering a first-of-its-kind service to the refining industry: a sulfur credits clearinghouse that efficiently connects refiners who have excess sulfur credits with those in need.

“As a refiner, Phillips understands the needs of the industry to meet environmental regulations,” said Clayton McMartin, manager of the clearinghouse. McMartin said that Phillips’ expertise in regulatory issues and its sulfur reduction technology position it to provide the service to other refiners.

Environmental Protection Agency regulations require refiners to begin production of low-sulfur gasoline by 2004. The multi-year phase-in program allows refiners some flexibility in gasoline sulfur production levels. Refiners who are already producing low-sulfur gasoline (relative to their 1997/98 baseline) can generate early credits for internal use or external sale. In the future, producing gasoline below established standards also will generate credits.

Phillips said the clearinghouse will simplify credit trading for buyers and sellers; optimize capital spending programs by monetizing refinery credits and provides importers access to credits to meet EPA regulations for imported gasoline.

“Phillips is generating early sulfur credits through operation of the S Zorb Sulfur Removal Technology processing unit at our Borger, Texas, refinery and other operations,” said McMartin. “In addition to other refiners, we believe Phillips will have excess credits available through the clearinghouse. Phillips has proven sulfur removal technology available for license and credits already earned.”