Refining Emissions Reduction
We continue working diligently to meet and exceed the requirements of an agreement signed with the U.S. Environmental Protection Agency (EPA) in January 2005 to reduce air emissions at nine of our 12 U.S. refineries. The other three refineries reached a similar settlement in 2001.
ConocoPhillips agreed to invest $525 million to install control technologies to reduce emissions from these refineries. However, our clean air initiatives will go beyond the agreement with the EPA, and by 2011 we expect to have invested more than $1 billion in projects to reduce air emissions.
We also are building the potential long-term cost of carbon into our business strategies and capital spending plans for our operations around the world. This will highlight opportunities to further improve energy efficiency and reduce greenhouse gas emissions.
In September 2008, the air permit allowing the expansion of the Wood River refinery in Illinois was approved after an extended process that enabled the parties involved to learn about the project. There were three issues reviewed by the U.S. EPA’s Appeals Board – technology that will be used for flaring, technology used to minimize CO2 emissions during flaring, and enforceability of new flare limits. ConocoPhillips agreed to a number of conditions above and beyond those required by regulation, including the installation of additional environmental monitoring equipment at the refinery, several studies at the refinery and several community projects.
Upon scheduled completion in 2011, the Wood River project will provide significant environmental benefits, including a 95 percent reduction in sulfur dioxide emissions, and a 25 percent reduction in nitrogen oxide emissions. Further, the expansion will provide an additional 3.2 million gallons per day of clean gasoline and diesel fuel in the region. The project also creates approximately 1,500 skilled craft jobs during the construction phase and more than 100 full-time refinery jobs.
Marine Emissions Reduction
In 2008, ConocoPhillips sold its international marine operations, while retaining its U.S.-based Polar Tanker fleet, currently comprised of five Endeavour-class tankers.
ConocoPhillips’ marine fleet employs a program called E-Speed that enables vessels to slow down and arrive in port on a just-in-time basis, when safe and practical to do so, thus reducing fuel consumption and emissions. By reducing engine power to 50 percent, a tanker’s speed drops by 20 percent, reducing fuel consumption and yielding a corresponding reduction in air emissions. Our tankers comply with the International Convention for the Prevention of Pollution from Ships Annex VI criteria for NOx emissions.