Phillips 66 and ADM in collaboration discussions

US oil refiner Phillips 66 and grain trader Archer-Daniels-Midland (ADM) are in talks over a new biofuels joint venture, Reuters reported.
The aim is of the collaboration is to produce sustainable aviation fuel (SAF).
The oil and corn-based ethanol industries, which were at odds for years over blending mandates, have increasingly become allies amid a series of partnerships aimed at securing crop feedstocks to produce lower-carbon biofuels without costly refinery upgrades, the news agency reported.
The two companies are discussing putting ADM's dry corn mill operations into a venture that would convert grain-based alcohol to SAF.
Houston-based Phillips next year plans to start making renewable fuels at a Rodeo, California refinery converted from crude oil to processing fats, used cooking oils and soybean oils into 50,000 barrels per day of renewable diesel, gasoline and SAF.
Several US states, led by California, have set up low-carbon fuel markets that reward fuel producers for developing motor fuels that emit less carbon. They can earn credits for producing fuels with lower carbon intensity compared with refining crude oil.