SHELL ROCK, IOWA, US — Phillips 66 has agreed to purchase soy oil for sustainable fuel production, including renewable diesel from the Shell Rock Soy Processing (SRSP), LLC.
The Mid-Iowa Cooperative, a farmer-owned cooperative based in east central Iowa, and Mike Kinley, chief executive officer of Mid-Iowa, have joined forces to create SRSP. Once operational in 2022, SRSP will crush 38.5 million bushels of soybeans a year, or approximately 110,000 bushels per day.
“A huge shift is underway in the energy industry that’s driving demand for soy oil,” Kinley said. “Working with Phillips 66 is a key step to help Iowa farmers benefit from the next level of sustainable energy production.”
When SRSP becomes operational in late 2022, it will produce around 4,000 barrels of soybean oil per day. Phillips 66 agreed to purchase 100% of the plant’s production of soybean oil that can be used to make renewable fuels.
The deal is the first by Phillips 66’s new Emerging Energy organization, which launched in January 2021. Phillips 66 also has invested in SRSP, giving it a minority ownership stake in the plant.
“This strategic investment expands our reach into the value chain for renewable diesel, which is projected to experience significant growth as the world transitions to a lower-carbon energy mix,” said Heath DePriest, vice president of Emerging Energy for Phillips 66.
SRSP also recently signed a multi-year partnership with CHS Inc. to support management and operations at the plant. SRSP will produce approximately 850,000 tonnes of high-quality soybean meal for livestock feed that CHS will market domestically and internationally.
SRSP also will produce soy oil that may be used for a variety of applications, including the human food industry. Approximately 25% of SRSP’s products will be used within Iowa, while 75% will be exported outside of Iowa.